21. When 'a bonus is given to the new partner, part of the entry to record the admission of new partner is to debit the capital account of the existing partners. 22. Admission of new partner by purchase increases the total assets of the partnership. 23. Admission by purchased at more than book value results in a gain to be récognized by the partnership.
21. When 'a bonus is given to the new partner, part of the entry to record the admission of new partner is to debit the capital account of the existing partners. 22. Admission of new partner by purchase increases the total assets of the partnership. 23. Admission by purchased at more than book value results in a gain to be récognized by the partnership.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
TRUE OR FALSE
![21. When 'a bonus is given to the new partner, part of the entry to record the
admission of new partner is to debit the capital account of the existing
partners.
22. Admission of new partner by purchase increases the total assets of the
partnership.
23. Admission by purchased- at more than book value results in a gain to be
recognized by the partnership.
24. Bonus to new partner results in a reduction of capital interest of the old
partner,
25. The existing partners will always recognize the revaluation of assets when a
new partner is admitted under revaluation method.
26. The death of a partner is a type of dissolution.
27. When the retiring partners' interest is paid by the partnership more than its
amount, a bonus from the remaining partner occur.
28. The retirement of a partner by his interest to outsiders may cause remaining
partners' capital to increase.
29. Admission of new partner by investment increases the total capital of the
partnership,
30. If the assets of the partnership are revalued at the date of retirement, there
can be no bonus recorded.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d6b9082-43c8-4c06-8daa-e73e142a40c4%2Fe0f780d0-1358-47ed-8512-9d023e524934%2Fj7touwk_processed.png&w=3840&q=75)
Transcribed Image Text:21. When 'a bonus is given to the new partner, part of the entry to record the
admission of new partner is to debit the capital account of the existing
partners.
22. Admission of new partner by purchase increases the total assets of the
partnership.
23. Admission by purchased- at more than book value results in a gain to be
recognized by the partnership.
24. Bonus to new partner results in a reduction of capital interest of the old
partner,
25. The existing partners will always recognize the revaluation of assets when a
new partner is admitted under revaluation method.
26. The death of a partner is a type of dissolution.
27. When the retiring partners' interest is paid by the partnership more than its
amount, a bonus from the remaining partner occur.
28. The retirement of a partner by his interest to outsiders may cause remaining
partners' capital to increase.
29. Admission of new partner by investment increases the total capital of the
partnership,
30. If the assets of the partnership are revalued at the date of retirement, there
can be no bonus recorded.
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