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PARTNERSHIP LIQUIDATION

Total questions: 10

Worksheet time: 4mins

Name
Class
Date
1.

Which is false in applying the rules that must be observe in retirement of a partner.

a)

Capital Balances of the retiring partner must be updated as of retirement date to be used as a basis for settlement

b)

Revaluation of assets will affect the account of retiring partner

c)

update for profit or loss share through estimation

d)

closed the drawing account of the retiring partner against the capital account

2.

If contributed capital of a new partner is greater than the new partner's agreed equity credit and the total contributed capital of all partners is equal to total agreed capital , there is

a)

bonus to existing partners

b)

bonus to new partner

c)

asset revaluation

d)

asset impairment

3.

If contributed capital of a new partner is less than the new partner's agreed equity credit and the total contributed capital of all partners is equal to total agreed capital , there is

a)

bonus to existing partner

b)

bonus to new partner

c)

asset revaluation

d)

asset impairment

4.

If total contributed capital of all partner is less than the total partner's agreed equity while the total contributed capital of new partner is equal to his agreed capital credit , there is

a)

bonus to existing partner

b)

bonus to new partner

c)

asset revaluation

d)

asset impairment

5.

total contributed capital of all partner is more than the total partner's agreed equity while the total contributed capital of new partner is equal to his agreed capital credit , there is

a)

bonus to existing partner

b)

bonus to new partner

c)

asset revaluation

d)

asset impairment

6.

Article 1826 of the New Civil Code defines dissolution as a change in the relation of a partners ceasing to be associated in carrying on the business

a)

TRUE

b)

FALSE

7.

a mutual agreement among partners or decision to withdraw from partnership is an example of what type of causes of dissolution

a)

acts of the partners

b)

by operation of law

c)

by judicial decree

d)

none of the given aswer

8.

if the dissolution contemplated upon was not provided for in the articles , the terms and condition for the dissolution should be ascertained from the remaining partners.

a)

TRUE

b)

FALSE

9.

Admission of a new partner may take place by

a)

purchasing an interest from one or more existing partners

b)

Investing cash or other assets in the partnership

c)

either purchasing interest of one or more existing partner or investing cash or other asset in the partnership

d)

neither purchasing interest of one or more existing partner nor investing cash or other asset in the partnership

10.

the following are example of changes in ownership which is not

a)

buying interest from current partner

b)

investing directly to the partnership

c)

partner abscond

d)

all of the given answer