Alerts
Wishlist
Cart
Sign In
Categories
Current Affairs & GK
Current Affairs
Show All Current Affairs & GK
eBooks
General Aptitude
Arithmetic Aptitude
Data Interpretation
Show All General Aptitude
General Knowledge
Basic General Knowledge
General Science
Show All General Knowledge
Medical Science
Anatomy
Biochemical Engineering
Biochemistry
Biotechnology
Microbiology
Show All Medical Science
Technical
Database
Digital Electronics
Electronics
Networking
Show All Technical
Verbal and Reasoning
Logical Reasoning
Verbal Ability
Verbal Reasoning
Show All Verbal and Reasoning
›
What is the purpose of preparing a final account for a partnership?
What is the purpose of preparing a final account for a partnership?
Expand All
Collapse All
Practice Questions
1 question
Q1
What is the purpose of preparing a final account for a partnership?
To determine the net income or loss
To calculate the partners' capital balances
To distribute profits among partners
All of the above
Show Solution
Copy
The final account serves multiple purposes including determining net income, calculating capital balances, and profit distribution.
Questions & Step-by-step Solutions
1 item
Q
Q: What is the purpose of preparing a final account for a partnership?
Solution:
The final account serves multiple purposes including determining net income, calculating capital balances, and profit distribution.
Steps: 5
Show Steps
Step 1: Understand that a final account is a summary of a partnership's financial activities over a specific period.
Step 2: Recognize that the final account helps to determine the net income, which is the profit or loss made by the partnership.
Step 3: Learn that the final account calculates the capital balances for each partner, showing how much each partner has invested or withdrawn.
Step 4: Realize that the final account is used to distribute profits among the partners according to their agreement.
Step 5: Remember that preparing a final account ensures transparency and helps partners understand the financial health of the partnership.
Related Questions
I
If a company has a net income of $250,000 and total revenue of $1,000,000, what
Question: If a company has a net income of $250,000 and total revenue of $1,000,000, what is the pro..
A
A business incurs a loss of 15% on selling a product for $425. What was the cost
Question: A business incurs a loss of 15% on selling a product for $425. What was the cost price?Opt..
I
If a company has total assets of $1,000,000 and total liabilities of $600,000, w
Question: If a company has total assets of $1,000,000 and total liabilities of $600,000, what is the..
A
A firm has a current ratio of 2:1 and current liabilities of $50,000. What are t
Question: A firm has a current ratio of 2:1 and current liabilities of $50,000. What are the current..
I
If a product is sold for $240 after a discount of 20%, what was the original pri
Question: If a product is sold for $240 after a discount of 20%, what was the original price?Options..
‹
Biology (School & UG)
Chemistry (School & UG)
Civil Engineering
Commerce & Accountancy
Computer Science & IT
Current Affairs & GK
Data Structures & Algorithms
eBooks
Electrical & Electronics Engineering
English (School)
General Aptitude
General Knowledge
General Knowledge & Current Affairs
Languages & Literature
Law & Legal Studies
Major Competitive Exams
Mathematics (School)
Mechanical Engineering
Medical Science
Physics (School & Undergraduate)
Quantitative Aptitude & Reasoning
Social Science (School)
Technical
Verbal and Reasoning
Vocational & Skill Development
›
Soulshift Feedback
×
On a scale of 0–10, how likely are you to recommend
The Soulshift Academy
?
0
1
2
3
4
5
6
7
8
9
10
Not likely
Very likely
✕
↑
