When a partner withdraws from a partnership and the value of the assets paaid

to
the partner by the partnership is greater than the balance in his the
oartnership is, in efect, paying the withdrawing partner a bonus.capital accou
pa

14. When the existing partners pay a bonus to a newly admitted partner, the existing
partners' accounts are debited.

15. When a bonus is allowed to a new partner, part of the entry to record his admission
to a business reduces the capital accounts of the old
partners.
16. A person admitted as a partner into an existing partnership is liable for obligations
of the partnership contracted before his admission.

17. Joel Wanagen purchased directly from Vangie Buenaventura her Ps0000
interest for P50,000. The entry to record the transaction is for P30,000.
partnership
18. A partnership is dissolved when a new partner is admitted to the partnership.

cause the
19. The retirement of a partner by payment from partnership assets may
other partners' capital accounts to decrease.

Ferdinand Romero's P250,000 partnership

20. Edward Santos directly purchased
interest for P300,000. The entry to record
the transaction is for P300,000.

assets into a partnership, yet be given a positive

21. It is possible to invest.no tangible
opening capital balance.

the balance in his

from a partnership is always entitled to
22. A partner who withdraws
capital account.

when the total agreed capital

the bonusS method is used
23. In admission by investment,
contributed capital.
IS more than the total

terminated but continues until winding up of

is not
4. On dissolution, the partnership
completed.
partnership affairs is
the partnership in exchange
his equity interest to
49,lfa partner withdraws by selling excess payment
the balance in his capital account, the
Tor an amount greater than
partners.
a bonus
to the continuing
wIll be treated as

Chapter 3: Dissolution -

Changes in Ownership | 3-15