19. On what basis are the profits of a partnership usually divided?
20. How are the personal and capital accounts of partners distinguished? What is the purpose of each of these accounts?
21. When the books of a partnership are closed, into what accounts are the revenue accounts closed? Into what accounts is the profit and loss account closed?
22. When the business of a partnership is sold, or liquidated, how are the net assets divided?
23. If any part of the assets, other than the goods in which the firm is trading, brings a price above cost, what journal entry is necessary? What entry if the price is below cost?
24. When partners invest unequal amounts in the business, what is the usual method of adjusting the inequality?
25. White, Black, and Brown who have been conducting business under a partnership agreement, decide to liquidate the business and dissolve the partnership. In the final settlement White agrees to accept the accounts receivable, which amount to $6,432.00, in part payment of the amount due him, provided 10% is first charged off to cover doubtful accounts. What journal entry is necessary?
26. H. W. Hackett has been conducting a grocery business. His books have been kept by double entry, and were last closed December 31st, 1908. At that time, his net worth was $2,698.50. April 30th, 1909, he sold to John Ransom a half interest in the business for $1,500.00. Ransom made a cash payment of $1,000.00, and gave his note for $500.00 payable on demand, with interest at 6%. The profits for the four months ending April 30th, 1909, (estimated from the books), were $325.00. This amount was to be allowed to Mr. Hackett and placed to his credit on the books. Make journal entries for the allowed profit and for the sale of the half interest. The books are not to be closed at the beginning of the new partnership.
27. Prepare in proper form a solution of the problem given in Art. 40, Page 72.