Explanation

(a) A fixed capital account:

-  This is a type of capital account in a partnership
- It is credited with the initial capital contribution of the partners and any addition to the capital.
- It is debited with any capital withdrawals by partners.

(b) Conditions that would result in a change in profit and loss sharing ratio of a partnership:

i. On the admission of a new partner

ii. On the retirement of a partner

iii. When there is a change in capital contribution

iv. On the death of a partner

v. On the resignation of a partner

vi. When there is a change in status of a partner, e.g. from dormant partner to an active partner

vii. On the amalgamation of partnerships

viii. When there is a takeover of a partnership

ix. Where profit and loss sharing ratio is based on capital contributions, additions, or withdrawals of capital

(c) Circumstances that would give rise to the creation of goodwill in partnerships are:

i. One the admission of a new partner

ii. Change in the profit and loss sharing ratio

iii. On the retirement of a partner

iv. On amalgamation of partnership

v. On dissolution of a partnership

vi. On the death of a partner

vii. Takeover or purchase of a partnership by another business

viii. On the resignation of a partner

• if 5^(2x)=125 find x? Answer this

  3 Answers   ·   Mathematics   ·   4 days ago
• how does post utme looks like and what are the subjects required for a medical student? Answer this

  2 Answers   ·   2 days ago
• What are the male and female reproductive hormones in animals? Answer this

  4 Answers   ·   Agricultural Science   ·   2 days ago