FAC1601
ASSIGNMENT 2
SOLUTIONS
PREPARED BY: MTHOMBENI
0767297208
, QUESTION 1
Which one of the following alternatives is correct?
e. Since partnerships are not governed by a law requiring that IFRS be applied, it is
not possible to introduce a standardized accounting procedure according to which
changes in the ownership structure of partnerships ought to be recorded.
QUESTION 2
Which one of the following alternatives is correct?
b. When recording the valuation adjustments, if the value of a liability is decreased,
the valuation account credited with the amount of a decrease.
QUESTION 3
Which one of the following alternatives is incorrect?
b. The selling price of the partnership business is dertermined by the value of its
assets.
QUESTION 4
A change in the ownership structure of the partnership occurs:
b. 2, 3, 4 and 5
QUESTION 5
Which one of the following alternatives is correct regarding the revaluation surplus in a
partnership when there is a change in ownership?
a. The revaluation surplus forms part of the equity of the partners and must allocated
to the CAPITAL accounts of the existing partners in their existing profit-sharing ratio.
QUESTION 6
Which one of the following alternatives is correct regarding the liquidation of a partnership?
f. The liquidation of a partnership is regarded as a form of dissolution that results in
the termination of the business activities of solvent partnerships.
QUESTION 7
Which one of the following alternatives is false?
A simultaneous liquidation allows a partnership to continue with activities until the
liquidation of all the assets is concluded.
1
ASSIGNMENT 2
SOLUTIONS
PREPARED BY: MTHOMBENI
0767297208
, QUESTION 1
Which one of the following alternatives is correct?
e. Since partnerships are not governed by a law requiring that IFRS be applied, it is
not possible to introduce a standardized accounting procedure according to which
changes in the ownership structure of partnerships ought to be recorded.
QUESTION 2
Which one of the following alternatives is correct?
b. When recording the valuation adjustments, if the value of a liability is decreased,
the valuation account credited with the amount of a decrease.
QUESTION 3
Which one of the following alternatives is incorrect?
b. The selling price of the partnership business is dertermined by the value of its
assets.
QUESTION 4
A change in the ownership structure of the partnership occurs:
b. 2, 3, 4 and 5
QUESTION 5
Which one of the following alternatives is correct regarding the revaluation surplus in a
partnership when there is a change in ownership?
a. The revaluation surplus forms part of the equity of the partners and must allocated
to the CAPITAL accounts of the existing partners in their existing profit-sharing ratio.
QUESTION 6
Which one of the following alternatives is correct regarding the liquidation of a partnership?
f. The liquidation of a partnership is regarded as a form of dissolution that results in
the termination of the business activities of solvent partnerships.
QUESTION 7
Which one of the following alternatives is false?
A simultaneous liquidation allows a partnership to continue with activities until the
liquidation of all the assets is concluded.
1
