Jeff and Kristie, partners in the J & K partnership, have capital balances of $100,000 and

$40,000 and share income in a ratio of 4:1, respectively. Brad is to be admitted into the
partnership with a 20 percent interest in the business

1. if the Brad invests $60,000 , the brad’s capital is ………..

a. 40,000
b. 30,000
c. 20,000
d. 16,000

2. in the previous example, the bonus to old partners is ………….

a. 40,000 b. 30,000
c. 20,000 d. 16,000

3. in the previous example, the capital balance of partnership after admission brad
is…
jeff Kristie brad
a. 116,000 44,000 30,000
b. 116,000 44,000 40,000
c. 116,000 40,000 40,000
d. 100,000 40,000 40,000

4. if the brad purchases 20% of partnership , the capital of brad account is …………
a. 28,000
b. 46,000
c. 62,000
d. 64,000

5. in the same example of 4, the jeff’s capital balance after admission brad is …………..
a. 80,000
b. 32,000
c. 28,000
d. none of these

6. if Brad invests $32,000, the Kristie, capital balance after admission brad is …………….
a. 98,080
b. 39,520
c. 34,400
d. none of these.

1 | Page Dr. Magdy Kamel

 The partnership of Ace, Jack, and spade has been in business for 25 years. On
decemer 31, 2008 spade decide to retire from the partnership. The partnership balance
sheet reported the following capital balances for each partner at December 31, 2008.

Ace, capital 150,000 Jack, capital 200,000 Spade, capital 120,000

7. if spade was given 60,000 of cash and partnership land, with a fair value of
120,000 the carrying amount of the land on the partnership books was 100,000
The revaluation of land is -----------------
a. 20,000
b. (20,000)
c. 30,000
d. none of these
8. in the previous example, the capital of spade after revaluation is …………….
a. 120,000
b. 150,000
c. 130,000
d. none of these

9. in the previous example, the Ace’s capital balance of partnership after withdrawal
spade is ………………………
a. 150,000
b. 154,000
c. 134,000
d. none of these

10. in the previous example, the Jack’s capital balance of partnership after
withdrawal spade is ………………………
a. 200,000
b. 206,000
c. 176,000
d. none of these

11. in the previousthe total capital of partnership after withdrawal spade is ……………
a. 350,000
b. 370,000
c. 310,000
d. none of these.
2 | Page Dr. Magdy Kamel