When bonus is given to old partners ____? a. old partners' capital accounts are credited. b. new partner's capital account is debited c. the bonus is divided based on P/L ratio d. all of the above...

When bonus is given to old partners ____?

a. old partners' capital accounts are credited.

b. new partner's capital account is debited

c. the bonus is divided based on P/L ratio

d. all of the above

When Billie retired from Billie, Ive, and Fromis partnership, he received cash in excess of his capital account balance. Under the bonus method, the excess received by Billie

a. had no effect on the capital account balances of Ive and Fromis.

b. was recognized as bonus to the old partners

c. reduced the capital account balances of both Ive and Fromis

d. was recognized as an operating expense

Which of the following will not result in dissolution of a partnership?

a. Incapacity of a partner

b. admission of a new partner

c. bankruptcy of a partner

d.. negative capital balance of a partner

When there are only two persons in the partnership, the sale of one's share to the other will make the partnership become a sole proprietorship.

a. True

b. False

When a partner retires, the book of the partnership should be adjusted as of

a. the date of retirement

b. interim report

c. the balance sheet date

d. all of the above

Bonus has the effect of decreasing the capital balance of the partner giving the bonus and increasing the capital of the partner receiving the bonus.

a. True

b. False

Jun 10, 2022

SOLUTION.PDF

When bonus is given to old partners ____? a. old partners' capital accounts are credited. b. new partner's capital account is debited c. the bonus is divided based on P/L ratio d. all of the above...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment