12.1 It is possible for a partnership business to be converted to a limited liability company to raise additional capital through ………
12.2 One of the limitations of a partnership business is that it does not have …….. life.
12.3 When converting a partnership business to a limited liability company, the first step is to ascertain whether the assets are ………. or not.
12.4 After the realisation account is opened, the ……… are recorded on the left side of the account.
12.5 The total purchase consideration is posted to the …… side of the realisation account.
12.6 A partnership business is being converted to a limited liability company. A partner decided to leave the balance on his capital account as a redeemable preference share attracting a fixed interest of 8 percent. The shares will be redeemed in four years’ time. How will the preference shares be classified in the statement of financial position?
12.7 In the partnership accounts, an upward revaluation of an item of Property, Plant, and Equipment will …….. the partner’s capital balance brought forward.
12.8 In the books of the limited liability company, the business purchase account shows the liability taken over on the ………. side.
12.9 In the partner’s realisation account, the share of profit is the ……. of the total amounts on the credit side over the amounts on the debit side.
12.10 ……… arises from the issuance of ordinary shares above their nominal value and it is recognised as an …… component in the statement of financial position.
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