KINDLY ANSWER THE FIVE QUESTIONS. THANK YOU! 1.S1: Partnership profits and losses (including bonuses and revaluations) are allocated in accordance with their Profit and Loss Ratio. S2: If only the share in the profits have been established in the articles of partnership, then the share in the losses must be in accordance with their profit ratio.* a. S1 True; S2 False b. Both are false c.Both are true d. S2 True; S1 False 2. If the total contributed capital of the partnership is greater than the total agreed capital, which of the following may arise:* a. Undervaluation of Assets b. Overvaluation of Assets c. All of the choices d. Goodwill 3. Bonuses to the old
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.
KINDLY ANSWER THE FIVE QUESTIONS. THANK YOU!
1.S1: Partnership profits and losses (including bonuses and revaluations) are allocated in accordance with their
a. S1 True; S2 False
b. Both are false
c.Both are true
d. S2 True; S1 False
2. If the total contributed capital of the partnership is greater than the total agreed capital, which of the following may arise:*
a. Undervaluation of Assets
b. Overvaluation of Assets
c. All of the choices
d.
3. Bonuses to the old partners arise under each of the following circumstances, except:*
a.Withdrawal of a partner and the interest is purchased by the partnership
b.Total contributed capital of the new partner is more than the agreed capital
c. Agreed bonus in the distribution of partnership net income
d. Purchase of Interest by a new partner
4. Which of the following partnership transactions are merely transfers of equity?*
a. Northwest retires from the partnership ad the partnership pays him P50,000 as full settlement of his capital balance.
b. North invests P20,000 cash for a 20% interest in the partnership. The partners agreed capital is P125,000 and the contributed capital of old partners are P105,000
c.Southeast dies and his wife receives settlement amounting to P80,000 from the partnership.
d. South withdraws from the partnership when his interest was bought out by his co-partners West and East.
5. It is a change in the partnership which is caused by a partner ceasing to be associated in the carrying of the partnership business:*
a. Liquidation
b. Annulment
c. Divorce
d.Dissolution
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