) When the net assets of the partnership are fairly valued and the amount invested by the incoming partner is equal to the interest he acquires, then it is implied that there is a. bonus to old partners b. bonus to new partner c. no bonus to either new or old partners d. bonus to both new and old partners
) When the net assets of the partnership are fairly valued and the amount invested by the incoming partner is equal to the interest he acquires, then it is implied that there is a. bonus to old partners b. bonus to new partner c. no bonus to either new or old partners d. bonus to both new and old partners
) When the net assets of the partnership are fairly valued and the amount invested by the incoming partner is equal to the interest he acquires, then it is implied that there is a. bonus to old partners b. bonus to new partner c. no bonus to either new or old partners d. bonus to both new and old partners
1) When the net assets of the partnership are fairly valued and the amount invested by the incoming partner is equal to the interest he acquires, then it is implied that there is
a. bonus to old partners
b. bonus to new partner
c. no bonus to either new or old partners
d. bonus to both new and old partners
2) When a partner withdraws from the business,
a) a new partnership is automatically formed
b) the original partnership continues
c) a new partner is admitted to the partnership
d) the partnership operations ceases
3) A partner who withdraws his interest at carrying amount receives assets
a) above his capital interest
b) less than his capital interest
c) with an indeterminate value
d) equal to his capital interest
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.
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