TRUE OR FALSE 21. When 'a bonus is given to the new partner, part of the entry to record theadmission of new partner is to debit the capital account of the existingpartners.22. Admission of new partner by purchase increases the total assets of thepartnership.23. Admission by purchased- at more than book value results in a gain to berecognized by the partnership.24. Bonus to new partner results in a reduction of capital interest of the oldpartner,25. The existing partners will always recognize the revaluation of assets when anew partner is admitted under revaluation method.26. The death of a partner is a type of dissolution.27. When the retiring partners' interest is paid by the partnership more than itsamount, a bonus from the remaining partner occur.28. The retirement of a partner by his interest to outsiders may cause remainingpartners' capital to increase.29. Admission of new partner by investment increases the total capital of thepartnership,30. If the assets of the partnership are revalued at the date of retirement, therecan be no bonus recorded.

21. When 'a bonus is given to the new partner, part of the entry to record the admission of new partner is to debit the capital account of the existing partners. 22. Admission of new partner by purchase increases the total assets of the partnership. 23. Admission by purchased at more than book value results in a gain to be récognized by the partnership.

21. When 'a bonus is given to the new partner, part of the entry to record the admission of new partner is to debit the capital account of the existing partners. 22. Admission of new partner by purchase increases the total assets of the partnership. 23. Admission by purchased at more than book value results in a gain to be récognized by the partnership.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 6BCRQ

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