16. A person may become a partner in apartnership by all of the followingmethods exceptA. Investing in the partnership with abonus to the new partnersB. Making a loan to the partnershipC. Investing in the partnership with abonus to the old partnesD. Purchasing a partner's interest17. B. Andy's interest in the partnership is110,000. M. Joy buys Andy's interestfor 120,000. How much is the capitalbalance of Joy after the purchase?А. 120,000В. 110,000С. 130,000D. 140,00018. L. Garcia, A. Harina, and E. Isla arepartners with capital ofP90,000,P50,000, and P60,000,respectively. M. Joson is admitted intothe partnership with 4 interest uponpayment of 80,000. If the old partnersshare profits and losses in the ratio of2/5, 2/5, and 1/5, then the capitalaccount of Isla after the admission ofJoson will show a balance ofА. 50,000В. 52,500С. 62,000D. 70,000

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16. A person may become a partner in a partnership by all of the following methods except A. Investing in the partnership with a bonus to the new partners B. Making a loan to the partnership C. Investing in the partnership with a bonus to the old partnes D. Purchasing a partner's interest

16. A person may become a partner in a partnership by all of the following methods except A. Investing in the partnership with a bonus to the new partners B. Making a loan to the partnership C. Investing in the partnership with a bonus to the old partnes D. Purchasing a partner's interest

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 44P

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Concept explainers

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.

Question

16. A person may become a partner in a
partnership by all of the following
methods except
A. Investing in the partnership with a
bonus to the new partners
B. Making a loan to the partnership
C. Investing in the partnership with a
bonus to the old partnes
D. Purchasing a partner's interest
17. B. Andy's interest in the partnership is
110,000. M. Joy buys Andy's interest
for 120,000. How much is the capital
balance of Joy after the purchase?
А. 120,000
В. 110,000
С. 130,000
D. 140,000
18. L. Garcia, A. Harina, and E. Isla are
partners with capital of
P90,000,P50,000, and P60,000,
respectively. M. Joson is admitted into
the partnership with 4 interest upon
payment of 80,000. If the old partners
share profits and losses in the ratio of
2/5, 2/5, and 1/5, then the capital
account of Isla after the admission of
Joson will show a balance of
А. 50,000
В. 52,500
С. 62,000
D. 70,000

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