What are the characteristics of general partnership?4marks

4.In what ways do preferred shares often have priority over common shares?

2 marks------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.A and B are partners who share profits and losses on a 2:1 basis, respectively, after a salary allowance of $12,000 is allocated to partner B. Earnings for the period total $39,000. What will be the amount credited to the Capital account of partner A when the books are closed?

3marks

6.Bill, Ace and Dennis Bud are partners in an urban restaurant called Salt.

Profit for the year ended March 31,2017, is 120,000.

a.How much profit should be allocated to each partner assuming there is no

Partnership agreement.

b. Prepare the entry to allocate the profit4 marks

6.Len Peters and Beau Silver form a partnership to operate a catering business, called A Catered Affair. Peters invests $20,000 cash and Silver invests $30,000 cash on March 1,2017. Prepare the journal entry to record the establishment of the partnership.3 marks