Question1 I. A partnership is a separate juridical entity, the shares to be paid out to the partners is necessarily limited only to its total resources II. A partnership must refund the shares of the partners, the amount to be refunded is necessarily limited to its total resources. III. Before the partners can be paid their shares, the creditors of the partnership must first be compensated. After all the creditors have been paid, whatever is left of the partnership assets becomes available for the payment of the partner's shares. a. Only I is correct b. Only II is correct c. All are true d. All are false
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.
Philippine
Question1 I. A partnership is a separate juridical entity, the shares to be paid out to the partners is necessarily limited only to its total resources
II. A partnership must refund the shares of the partners, the amount to be refunded is necessarily limited to its total resources.
III. Before the partners can be paid their shares, the creditors of the partnership must first be compensated. After all the creditors have been paid, whatever is left of the partnership assets becomes available for the payment of the partner's shares.
a. Only I is correct
b. Only II is correct
c. All are true
d. All are false
Question 2
The change in the relation of the parties caused by any partner ceasing to be associated in the carrying on, as might be distinguished from the winding up of, the business.
a. Dissolution
b. Liquidation
c. Termination
d. Winding up
Question 3
X, Y and Z are partners in XYZ partnership. X and Y contributed P10,000 each while Z contributed his service. After payment of the partnership liabilities to creditors, only P15,000 remains. In the absence of stipulation to the contrary the share of Z shall be:
a. P5,000.00
b. P10,000.00
c. P3,000.00
d. Zero
Question 4
If a partner is insolvent, the first in the order of preference in the distribution of his assets is:
a. Partnership creditors
b. Separate creditors of the partner-debtor
c. Partner's contribution to the partnership
d. Pro-rata between the separate creditors and the partnership creditors
Question 5
I. The dissolution of the partnership means that the juridical entity was immediately terminated and that the distribution of the assets to its partners should perfunctorily follow.
II. The partnership, although dissolved, continues to exist until its termination, at which time the winding up of its affairs should have been completed and the net partnership assets are divided and distributed to the partners.
a. Only I is correct
b. Only II is correct
c. Both are true
d. Both are false
Question 6
I. A universal partnership of present property shall include the profits which the partner's may acquire therewith such as properties to be acquired through legacy, donation or inheritance.
II. After dissolution, the partners may still enter into contracts in the name of the dissolved Partnership if it is for the purpose of winding up.
a. Only I is correct
b. Only II is correct
c. Both are true
d. Both are false
Question 7
I. The legal personality of the expiring partnership persists for the limited purpose of winding up and closing of the affairs of the partnership.
II. After dissolution, all the transactions of the partnership should not only pertain to liquidation which will happen over a period of time.
a. Only I is correct
b. Only II is correct
c. Both are true
d. Both are false
Question 8
I. The transfer by a partner of his partnership interest does not make the assignee of such interest a partner of the firm, nor entitle the assignee to interfere in the management of the partnership business or to receive anything except the assignee's profits.
II. Generally understood to mean an organization formed for some temporary purpose, a joint Venture is likened to a particular partnership.
a. Only I is correct
b. Only II is correct
c. Both are true
d. Both are false
Question 9
I. As a rule, when a partnership is dissolved, any of the partners can bind the partnership.
II. Where the dissolution is caused by the act, death or insolvency of a partner, each partner is Liable to his co-partners for his share of any liability created by any partner acting for the Partnership as if the partnership had not been dissolved.
a. Only I is correct
b. Only II is correct
c. Both are true
d. Both are false
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