When a partner withdraws from a partnership and the value of the assets paid to the partner by the partnership is greater than the balance in his capital account, the partnership is, in effect, paying the withdrawing partner a bonus. TRUE OR FALSE?

Q: ) When the net assets of the partnership are fairly valued and the amount invested by the incoming…

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Q: Discuss when a limited partner does or does not have the following rights or powers: (a) to assign…

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Q: If total contributed capital is equal to total agreed capital with the new partner's investment is…

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Q: A new partner is admitted to an existing partnership. As a result of admission, the capital balances…

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Q: Which of the following is an element of the requirement that partnership allocations must have…

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Q: When a partner decides to withdraw or retire, he may sell his capital interest either to outsiders,…

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Q: When a partner retires from the partnership and the settlement of his interest exceeded his capital…

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Q: A person may become a partner in a partnership by all of the following methods EXCEPT   Options:…

A: A person may become a partner in a partnership by all of the following methods as under: • Investing…

Q: In the liquidation of general partnership, which of the following claims shall be settled first by…

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Q: There is no impact on the statement of comprehensive income of a partnership when a partner…

A: The drawings are the cash or assets withdrawn by the owner or partner for his personal use. The…

Q: A bonus may be paid in each of the following situations EXCEPT: By a new partner to the original…

A: Bonus is said to be the compensation which is paid by the company to its employees which is above…

Q: 1. When a property other than Cash is invested in a partnership, at what amount should the noncash…

A: In the light of provisions of Partnership Act, When a property other than Cash is invested in a…

Q: Bonuses to the old partners arise under each of the following circumstances, except:  a. Agreed…

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Q: Explain the difference between the admission of a new partner to a partnership (a) by purchase of an…

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Q: When a partner retires from the partnership and is given more cash than his adjusted capital, how…

A: Solution: When a partner retires from the partnership and is given more cash than his adjusted…

Q: Which of the following is NOT considered a legitimate expense of a partnership business? Interest…

A: Partnership is the form of business entity whereby two or more individuals together run a business.…

Q: In the absence of other relevant data, when a new partner is admitted in an existing partnership…

A: A new partner is admitted to the existing partnership firm to increase the capital resources of the…

Q: ith the lowest capital balances first  c. Partners based on their capital balances

A: When a partnership is dissolved , the assets are liquidated and liabilities are paid off

Q: A new partner is admitted to an existing partnership. As a result of admission, the capital balances…

A: Partnership represents the form of business that is owed and controlled by two or more partners who…

Q: A person entoring into a partnership is only liable for debts or eligible for profits from the date…

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Q: If a partner's contribution in kind has been over-valued; upon complain by others, the said partner…

A: If a partner's contribution in kind is over valued, the partner shall contribute the difference…

Q: Of all of the reasons listed, which one would NOT result in a bonus being O The remaining partners…

A: In the all cases bonus is paid to withdrawing partner except when the partner is anxious to…

Q: Which of the following will decrease the capital balance of a partner? A. Share in partnership…

A: Introduction: Partnership: Its an agreement between two or more partners for forming a business and…

Q: K is a capitalist partner. In the articles of partnership, it was provided that K’s duty was to…

A: He will be entitled to right to compensation

Q: When the investment of a new partner into the partnership exceeds his/her initial capital credit,…

A: When the investment of a new partner into the partnership is less than his/her initial capital…

Q: When a partner withdraws from a partnership, why is the final distribution often based on the…

A: Definition:   Partnership: This is the form of business entity that is formed by an agreement,…

Q: When a general partner is unable to pay a capital deficiency: The partner must take out a loan to…

A: The correct answer is:-  Both B and D As the deficiency is divided between the remaining partner and…

Q: Which statement is incorrect? * -The accrual basis of accounting is used to account for partnership…

A: Since you have asked multiple questions, we will solve the first question for you . If you want any…

Q: If there is no written, legal agreement for the partnership then which one of the following will…

A: There should be an legal agreement for partners to receive salaries or bonuses. In the absence of…

Q: In the liquidating process, any uncollectible deficiency becomes a loss to the partnership and is…

A: Dissolution of the Partnership Firm :—  Whenever Reconstituted takes Place between the partners in…

Q: In the liquidation of a partnership, why might a partner be concerned that a fellow partner has a…

A: Given: The elimination of deficit net capital balance of fellow partners.

Q: If a new partner purchases his interest from an old partner, the only entry on the partnership books…

A: A partnership firm business is a business where two or more people agree to start a business to…

Q: In the liquidating process, any uncollected cash becomes a loss to the partnership and is divided…

A: In the process of liquidation of partnership any collected cash becomes a loss to the partnership…

Q: Which of the following statements is correct when a new product is admitted to an existing…

A: Solution: The correct statement when a new partner is admitted to an existing partnership by…

Q: In a partnership, a capital deficiency occurs for a partner when   Options: • His share in the…

A: Solution: Capital deficiency means debit balance of one or more partner at the time of final cash…

Q: Emilio Alvarez and Graciela Zavala joined together to form a partnership. Is it possible for them to…

A:

Q: If a partner who retired from the partnership receives less than the capital balance before…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: Why might a partnership pay a bonus to a newly admitted partner?

A: Partnership: A partnership is a firm structure whereby multiple people own the firm together. These…

Q: Choose TRUE if the statement is correct, and FALSE if it is wrong.  1. There is no impact on the…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: If a partnership is liquidated, partners ( except for limited partners) are liable to the extent of…

A: Partnership is an agreement by two or more individuals to do a business together and the profit or…

Q: , one of the partners in the ABC Partnership, decided to buy the share of B in the partnership.…

A: Solution: A, one of the partners in the ABC Partnership, decided to buy the share of B in the…

Q: If a partner who retired from the partnership receives less than the capital balance before…

A: Revaluation/impairment of asset need to be done ,so fair settlement take place.

Q: If A is the total capital of the partnership before the admission of a new partner, B is the total…

A: A partnership is the form of business that is carried by two partners and sharing the profit and…

Q: A capital deficiency means that: The partnership has a loss. The partnership has more liabilities…

A: Partnership refers to an agreement where between two or more people come together for a common goal.…

Q: Emilio Alvarez and Graciela Zavala joined together to form a partnership. Is it posible for them to…

A: Partnership firm is formed by the two or more members. These members are called partners and their…

Q: Which of the following statements is correct when a new partner is admitted to an existing…

A: Solution: The correct statement when a new partner is admitted to an existing partnership by…

Q: n a partnership liquidation, if a partner has a debit capital balance in his or her capital account,…

A: Partnership means where two or more person comes together to do some common business activity and…