Bookkeeping and Accounting Volume 1 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920 Excerpt: ...of a dissolution should not be ignored and that specific regulations with reference thereto should be included in the articles of copartnership. Summary Xo attempt has been made in the preceding discussion to give an exhaustive treatment of the legal and accounting problems involved in the formation, operation and dissolution of a partnership. For a discussion of these the student must refer to texts on commercial law and on accounting practice. It is hoped, however, that this discussion has pointed out those principles which will be of most service and of most frequent application in the operation of a business of which the ownership is vested in a partnership. It may be well to state again that the accounting records and practices of a partnership business are in the main the same as those for any other type. It is only in connection with certain transactions relating directly to the proprietorship that the procedure may be different. To point out this difference is the purpose of the preceding discussion. QUESTIONS FOR CLASS DISCUSSION 1 A and B are partners in the furniture business. A, without B's knowledge or consent, orders, in the firm's name, a carload of furniture from the Grand Rapids Furniture Co. B contends that the purchase was not authorized and that the company will not pay for it. The Grand Rapids Furniture Co. sues the firm for the purchase price. Can they recover? 2 Suppose in the foregoing case A had ordered a carload of eggs from a cold storage company. What would the decision have been? 3 A, B and C are partners. A is killed. What happens to the partnership? Suppose before his death A had sold his interest to X. What would have been the result? 4 The partnership of Smith & Brown is insolvent. The partnership owes King, its chief cr...