Business Finance Homework Help

I’m working on a accounting discussion question and need a sample draft to help me learn.

1. The Jones Partnership agreement includes a provision for distribution of partnership interest on capital balances. Unfortunately, the provision does not state the specific capital balance to be used in computing the profit share. What choices of capital balances are available to the partners? What is the preferred capital balance to be used in an interest allocation? Why?
2. Under what circumstances would a partner’s capital account have a debit, or a deficiency, balance? How is the deficiency normally eliminated?
3. Assume that because of a new law recently passed, the types of significant transactions in which the partnership engages are no longer lawful. Two of the five partners wish to wind up and terminate the partnership. Can these two partners require the partnership to terminate? Explain in detail.