1) Defined contribution plans are post employment benefit under which any entity pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods.
Defined benefit plans are post employment plans other than defined contributions plans.
2)The employee is guaranteed a fixed sum of benefit on retirement under the defined benefit plans. An entity is therefore required to make arrangements to ensure the fund created for purpose of meeting future liabilities is solvent. Under the defined contribution plan a contribution gets paid based on the amount contributed by him and the employment inclusive of interest earned or less any losses incurred by the fund.
In this regard when an economy is booming an employee would benefit most under the defined contribution plan. However, exit benefits may be much lower in situations where an economy is not performing well, in which case a defined benefit plan may be more attractive
Wilfykil answered the question on February 11, 2019 at 06:33
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Date posted: February 11, 2019. Answers (1)
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Date posted: February 11, 2019. Answers (1)
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Date posted: February 11, 2019. Answers (1)
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Date posted: February 11, 2019. Answers (1)
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Required:
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Date posted: February 11, 2019. Answers (1)
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Date posted: February 8, 2019. Answers (1)
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Date posted: February 8, 2019. Answers (1)
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Ali, Baba and Cheche were in partnership sharing profits and losses in the ratio 2:2:1 respectively. Following serious disagreement, the partners decided to dissolve the partnership. The proceeds from sale of assets were to be paid to the individual partners after all expenses and liabilities had been paid.
The balance sheet as at 30 September 2007 when the partners made the decision to dissolve the partnership was as follows:
Required:
a) Briefly explain the rule in Garner Vs Murray.
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c) Realization account, cash at bank account and capital accounts to close off the books of the
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Date posted: February 8, 2019. Answers (1)
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Date posted: February 8, 2019. Answers (1)
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Date posted: February 8, 2019. Answers (1)
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Required;-
(i) Statement of cash distribution to the partners.
(ii) Realization account,
(iii) Bank account.
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Date posted: February 8, 2019. Answers (1)
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Date posted: February 8, 2019. Answers (1)
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Date posted: February 8, 2019. Answers (1)