Simonsen,Paulson and Richardson Are Partners in a Firm with the Following

question 32

Multiple Choice

Simonsen,Paulson and Richardson are partners in a firm with the following capital account balances: $$\begin{array} { | l | l | } \hline \text { Simonsen } & \$ 50,000 \\\hline \text { Paulson } & 150,000 \\\hline \text { Richardson } & 30,000 \\\hline\end{array}$$ The profit-and-loss-sharing ratio among Simonsen,Paulson and Richardson is 1:3:2,in the order given.Paulson is retiring from the partnership on 31 December 2017.Paulson's capital account is settled at book value.Journalise the cash payment to Paulson upon retirement.

• A) \[\begin{array} { | c | l | l | }
• \hline \text { Paulson, capital } & \$ 150,000 & \\
• \hline \text { Cash } & & 90,000 \\
• \hline \text { Simonsen, capital } & & 20,000 \\
• \hline \begin{array} { c }
• \text { Richardson, } \\
• \text { capital }
• \end{array} & & 40,000 \\
• \hline
• \end{array}\]
• B) \(\begin{array}{|ll|l|l|}
• \hline\text { Cash } & & \$ 150,000 & \\
• \hline& \text { Paulson, } & & \\
• \text { capital }& && 150,000\\\hline
• \end{array}\)
• C) \[\begin{array} { | r | l | l | }
• \hline \text { Paulson, capital } & \$ 150,000 & \\
• \hline \text { Cash } & & 150,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | r | l | l | }
• \hline \text { Paulson, capital } & \$ 150,000 & \\
• \hline \text { Simonsen, capital } & 50,000 & \\
• \hline \text { Richardson, capital } & 80,000 & \\
• \hline \text { Cash } & & 280,000 \\
• \hline
• \end{array}\]

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Definitions:

Social Networks

The webs of relationships and connections among individuals or organizations, facilitating communication and interaction.

Deindividuation

A psychological state where an individual loses self-awareness and personal responsibility in groups, often leading to unprecedented behaviors.

Primary Groups

Primary groups are small social groups whose relationships are personal, close, and enduring, such as families or close friend groups, and are fundamental in shaping social identity and socialization.

Secondary Groups

Large, impersonal social groups in which interactions are based on specific functions or roles, such as coworkers or members of an organization, rather than personal connections.