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WorksheetsPartnership Dissolution for 103A
Total questions: 13
Worksheet time: 11mins
In admission of a partner, what is always recorded in the capital account of a new partner is his/her actual contribution.
True
False
In an admission by contribution of assets, what is recorded in the partnership is the transfer of interest from the selling partner to the buying partner.
True
False
If one of the partners become crazy, the partnership may be dissolved.
True
False
When a partner is retiring, (s)he may receive an amount more than his capital credit at the time of retirement.
True
False
When the amount paid by a new partner is different from the amount credited to his/her capital account,
the difference is a bonus given to the new partner
the difference is a bonus given to the old partners
the difference will be debited or credited to the old partners
the amount needs to be determined first for proper treatment
When a bonus belongs to the new partner, the old partners' capital accounts
stay the same
will be debited
will be credited
answer cannot be determined
Which of the following will not dissolve a partnership?
When a partner has a capital deficiency
When the partnership will be liquidated
When a partner becomes insane
When a partner retires from the partnership
Purchase of interest method
increases partnership equity
is a transfer of interest between the new and old partners
gives rise to a recording of asset contributed
may result in a recognition of a liability
In an admission of a partner where a new partner will receive a bonus from the old partners,
the old partners' capital accounts will be credited for the bonus amount
the type of admission is a purchase of interest
the capital credit of the new partner is more than his/her actual contribution
the new partner's capital account will be debited for the amount of bonus
A, B and C are partners in ABC Co. with capital balances of P40,000, P40,000, P20,000, respectively. The PNL sharing ratio follows the capital contribution ratio. If partner D is admitted into the partnership by purchasing 50% of partners' A & B's interests for P20,000, what will be the new balance of the partnership's equity?
100,000
142,857
140,000
120,000
C is admitted in AB Co. by contributing P30,000 in exchange for a 25% interest in the partnership. A and B's capital balances prior to admission are as follow: A - P70,000; B - P80,000. How much is the capital credit of partner C upon admission?
30,000
45,000
50,000
37,500
If the original PNL sharing ratio of partners A, B and C is 2:2:4 and partner D is admitted into the partnership by purchasing 50% interest of C, what is the percentage interest of partner D in the revised PNL sharing ratio?
50%
33%
20%
25%
A, B and C are partners in ABC Co. C, with the consent of all partners withdrew from the partnership his capital credit of P125,000. Prior to withdrawal, the PNL sharing ratio is 3:2:1. What will be the revised PNL sharing of the remaining partners after C withdrew from the partnership?
20%
30%
40%
33%
