The admission of a new partner under the bonus method will result in a bonus to which option?a.the old partners only.b.the new partner only.ceither the new partner or the old partners, but not bothd.none of the above.

ANSWERS. The admission of a new partner under the bonus method Using the bonus approach, the…

Answered: new partner under the bonus method

Business

Accounting

new partner under the bonus method

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 5BCRQ

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Concept explainers

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.

Question

The admission of a new partner under the bonus method will result in a bonus to which option?

a.	the old partners only.
b.	the new partner only.
c	either the new partner or the old partners, but not both
d.	none of the above.

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