.41. A retiring partner from the partnership may receive bonus from the remaining partner. 42. A retiring partner from the partnership may pay bonus to remaining partners. 43. Winding up is the process of settling the business or partnership affairs after dissolution. 44. Bonus to old partner results in a reduction of capital interest of the new partner.
.41. A retiring partner from the partnership may receive bonus from the remaining partner. 42. A retiring partner from the partnership may pay bonus to remaining partners. 43. Winding up is the process of settling the business or partnership affairs after dissolution. 44. Bonus to old partner results in a reduction of capital interest of the new partner.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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TRUE OR FALSE
Transcribed Image Text:41. A retiring partner from the partnership may receive bonus from the remaining
partner.
42. A retiring partner from the partnership may pay bonus to remaining partners.
43. Winding up is the process of settling the business or partnership affairs after
dissolution.
44. Bonus to old partner results in a reduction of capital interest of the new
partner.
45. Any partner may retire from the partnership without prior notice with other
partners.
46. Partnership assets must be revalued when a partner withdraws.
47. If the new partner acquires 20% capital interest of an existing partner, the new
partner is also entitled to a 20% of the existing partner's profit and loss ratio.
48. Bonus to existing partner is given by the new partner.
49. The sale of interest of the retiring partner to the remaining partners is a
personal transaction between them.
50. The sale of interest of the retiring partner to the remaining partner increases
the capital of the partnership. .
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