Match the items below by entering the appropriate code number in the space provided. (Points : 5)

Potential Matches:

1 : Results in an increase in total net assets and total capital of the partnership.

2 : Each partner is personally and individually liable for partnership debts.

3 : Written contract establishing duties and responsibilities of partners.

4 : Made on basis of partners' capital balances.

5 : Total net assets and total capital of the partnership do not change.

6 : Explains changes in individual partner's capital accounts during a period.

7 : Business terminates.

8 : Each partner can bind the partnership so long as the action appears to be appropriate for the partnership.

9 : The basis for sharing income and losses.

10 : Capital account with a debit balance.

Answer

: Mutual agency

: Unlimited liability

: Partnership agreement

: Income ratio

: Partners' capital statement

: Admission by investment

: Purchase of an interest

: Partnership liquidation

: Capital deficiency

: Distribution of cash to partners in liquidation of a partnership