MODULE 21(ACTIVITY 3)

Name: MYLEE NELLAS HERAGA Class number: BLOCK 4

Section: BSA 1-COC-A Schedule: W/S 8am-12pm Date: OCT. 23,021

Activity 3: Skill-building Activities

Directions: Try this exercise and see how well do you understand the concepts about
manufacturing. In the spaces provided, write T if the statement below is true otherwise F
if it is false.
F 1) A partnership agreement may validly stipulate that one partner shall receive no
share in profits or losses.
T 2) If a partnership agreement does not specify how profits or losses are to be
distributed, they should be allocated based on relative capital account balances.
T 3) In the absence of agreement for distribution of profit, the share of industrial
partner in profit is not fixed because it is based on what is just and equitable under
circumstances.
T 4) The industrial partner is not liable for losses since he cannot withdraw the work
or labor already done.
F 5) The capitalist-industrial partner is not liable for any losses.
F 6) Profits or losses are divided equally among the partners unless partnership
agreement specifies otherwise.
F 7) In the absence of a specific agreement, the law requires that partnership profits
be divided equally among partners.
T 8) If only the share of each partner in the profits has been agreed upon, the share
of each in the losses shall be in the same proportion.
T 9) If an error resulted in an understatement of profit in previous periods, a
correcting entry would be needed to increase capital.
F 10) If an error resulted in an overstatement of profit in previous periods, a
correcting entry would be needed to increase capital.