Question

26. In admission of a new partner by investment, bonus is recorded when A total agreed capital is less than total contributed capital B. total agreed capital is equal to total contributed capital and the capital credit of the new parner s greater than his capital contribution C. total agreed capital is equal to total contributed capital. D. total agreed capital is equal to total contributed capital and the capital credit of the old partners is equal to their capital contributions 27. Right of offiset A is allowed only for general partnerships. B. increases the capital deficiency of an insolvent partner C. is a method of removing a partner's capital deficiency D. Is allowed only when the deficient partner has a loan from the partnership 28. The amount at which the investment of each partner is recorded in the partnenrship books upon formation of the partnership. A Cost B. Net book value c. Depreciable cost D. Fair market value 29. A partner who contributes his work or labor and computers to the partnership is known as A. General-limited partner B. Capitalist-industrial partner C. Industrial partner D. Capitalist partner A bonus to a new partner 30. A. Is prohibited by the Civil Code of the Philippines. B. Results when the new partner's capital credit is less than his or her investment of assets in the firm. C. May occur when recorded book values are lower than market values D. Results when the new partner's capital credit is greater than his or her investment of assets in the firm The admission of a new partner to an existing partnership 31. A may be accomplished only by investing assets in the partnership B. requires purchasing the interest of one or more existing partners. C. causes a legal dissolution of the existing partnership. is accompanied by the liquidation of the business. D. The partnership agreement should include each of the following except the 32. A. estimated date when the partnership is to be liquidated B. principal location of the firm C. name of the partners and their P/L sharing basis D. date the partnership is established. A profit sharing percentage based on capital balances is appropriate when A. Service is a primary consideration B. Some, but not all, partners plan to work in the business C. Fund investment in the partnership is the prime consideration. D. Little net income is expected 33. 34. One of the following statements does NOT correctly describe the admission of a new partner by investment A. The admission may involve recording of bonus. B. Total partnership capitalization may or may not increase C. Total assets of the partnership increases D. The admission is not a personal transaction between the selling and the buying partner. mhin at a lower amount

Answer 1

=(26-A)

The bonus recorded only if there is any excess capital brought by the new partner in respect of his profit sharing ratio. and the excess amount of credit to old partners in their old profit sharing ratio.

=(27-B)

=(28-B)

=(29-B)

The partner who contributes his property or money and his work are called a capitalist-industrialist partner.

=(30-B)

=(31-B)

Answer 2

answer sheet:

26. Answer is A