Chapter Exam - Partnership Dissolution - 3

7/13/23, 8:23 PM Chapter Exam - Partnership Dissolution: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
Chapter Exam - Partnership Dissolution

Due Jul 5 at 11:20am Points 50 Questions 20
Available Jul 5 at 10:20am - Jul 5 at 11:20am 1 hour Time Limit 40 Minutes
Instructions
Choose the best answer for each of the following questions. You are required to answer twenty (20)
questions consisting of fifteen (15) theory questions and five (5) problem questions. Perfect score is 50
points. Time limit is 40 minutes. Questions are given one at a time and locked after answering. Read the
questions carefully.
This quiz was locked Jul 5 at 11:20am.
Attempt History
Attempt Time Score
LATEST Attempt 1 36 minutes 40 out of 50
Score for this quiz: 40 out of 50

Submitted Jul 5 at 11:14am
This attempt took 36 minutes.
Question 1 2 / 2 pts
Which of the following statements is (are) correct?
I. When a new partner invests more than the proportionate share he
receives in the partnership, a bonus is recorded to his account.
II. Total partners' equity will change when a withdrawing partner sells his
interest to a new partner or remaining partner.
Only the second statement is correct
https://usc.instructure.com/courses/30611/quizzes/189490?module_item_id=1264648 1/13
Only the first statement is correct
Both statements are correct
Correct! Neither of the statements is correct
I. The interest of the withdrawing partner may be sold to a new partner or
an outsider without the consent of other partners.
II. If the actual investment of the new partner is greater than his capital
credit, the bonus belongs to the new partner.
III. A partnership is not dissolved when a new partner is admitted to the

partnership.
False, false, true
True, false, true
True, false, false
Correct! False, false, false
False, true, false
I. When a new partner purchased the existing partner's P200,000 capital
interest for P200,000, the ensuing journal entry on the books of the
partnership would contain a debit to cash for P200,000.
II. The admission of a new partner under the bonus method will result in
bonus to the old partners only.
Which of the following statements is correct about admission of a new

partner?
I. In admission by purchase of interest, gain or loss arising from the sale
of interest is recorded in the partnership books.
II. The admission of a new partner by investment in the partnership will

not increase partnership capital after admission.
A partner sold his interest to the partnership for an amount less than his
capital balance. Which of the following statements is correct?
A. The remaining partners receive a bonus.
B. The withdrawing partner receives a bonus.
C. No bonus results.
D. The remaining partners owe the withdrawing partner the difference.
Correct! A
C
B
D
It is the amount of capital or equity transferred by one partner to another

partner.
Total agreed capital
Correct! Bonus
Capital credit
Total contributed capital
It is computed by multiplying the total agreed capital by the percentage

interest of the new partner. It represents the interest or equity of a partner
in the new partnership.
Bonus
Total agreed capital
Total contributed capital
Correct! Capital credit
Which of the following statements is (are) true about admission by

investment?
I. If the new partner's capital credit is less than his actual investment, the
difference represents the bonus allocated to the old partners in their profit
and loss ratio.
II. If the new partner's capital credit is greater that his actual investment,
the difference represents a bonus to the new partner and deducted from
the old partners' capital accounts in their profit and loss ratio.
Neither of the statements is true
Only the first statement is true
Correct! Both statements are true
Only the second statement is true
Which of the following statements is (are) true?
I. When the newly admitted partner pays a bonus to the existing partners,
the new partner's capital account is debited to record the bonus to the old
partners.
II. The assets invested into the partnership and not given to the individual
partners increase the total assets of the partnership.
Correct! Both statements are true
Only the first statement is true
Neither of the statements is true
Which of the following statements is (are) not true?
I. When a partner retires, the books of the partnership should be adjusted
as of the balance sheet date.
II. When the existing partners pay a bonus to a newly admitted partner,
the amount of bonus is credited to the capital account of the existing
partners.
orrect Answer Statements I and II
Statement I only
None of the statements
ou Answered Staement II only
Which of the following does not result in the dissolution of a partnership?
A. Admission of a new partner
B. Withdrawal of a partner
C. Sale of partnership assets
D. Death of a partner
E. None of the above
D
orrect Answer C
ou Answered E
B
A
When a partner retires and receives in cash less than his capital balance,
how should the difference be treated?
A. The difference should be debited to the remaining partners in their

remaining P/L ratio.
B. The difference should be credited to the remaining partners in their

remaining P/L ratio.
C. The difference should be credited to all the partners in their P/L ratio.
D. The difference should be debited to all the partners in their P/L ratio.
A
D
C
Correct! B
When the investment of a new partner exceeds the new partner's initial
capital balance, who will receive the bonus?
A. The old partners in their new profit and loss ratio
B. The old partners in their old profit and loss ratio
C. The old and new partners in their new profit and loss ratio
D. The new partner
Correct! B
A
C
D
I. An admission by purchase of interest from one or more of the existing

partners is a transaction between the partnership and the new or buying
partner.
II. Admission by investment may result to a bonus given to the new

partner or to the old partners.
Neither of the statements is correct
Correct! Only the second statement is correct
Which of the following statements is (are) true about withdrawal of a

partner?
I. When the interest of the withdrawing partner is acquired by any of the
continuing partners, the withdrawing partner is paid from the assets of the
partnership.
II. If the withdrawing partner sells his interest to the partnership, the
assets and owner's equity of the partnership are not affected.
Both statements are true
ou Answered Only the first statement is true

orrect Answer Neither of the statements is true
Rosa, Rose, and Rosemarie are partners with capital balances on

January 1, 2022 of P150,000, P225,000, and P300,000, and the profit
and loss ratio is 5:3:2, respectively. On July 1, 2022, Rosa retires from the
partnership. On the date of retirement, the partnership's net income is
P210,000, and the partners agreed that inventories are to be revalued at
P105,000 from its original cost of P75,000. The partners agreed further to
pay Rosa P292,500 in settlement of her interest.
Required: Compute the capital balance of the remaining partners after the
retirement of Rosa.
orrect Answer Rose, 283,500; Rosemarie, 339,000
Rose, 330,000; Rosemarie, 339,000
Rose, 297,000; Rosemarie, 348,000
ou Answered Rose, 310,500; Rosemarie,357,000
Jess and Jessie are partners. The capital balance of Jess is P125,000
and that of Jessie is P150,000. Joy is admitted as a new partner by
investing P100,000. Joy is given 20% interest in the partnership in return
for his investment.
Required: Compute the amount of bonus to the old partners.
0
45,000
Correct! 25,000
20,000
Marie and Maria are partners in Mama Partnership with capital balances
of P825,000 and P525,000, and share profit and loss in the ratio of 1:3,
respectively. Mario invested P210,000 cash in the partnership for a one-
eight interest. Assets of the partnership are fairly valued except for
delivery truck, which is undervalued by P120,000. Net assets of the
partnership are to be revalued prior to Mario's admission.
Required: Compute the total partnership capital after the admission of

Mario.
1,560,000
Correct! 1,680,000
1,200,000
1,470,000
The partnership of Rick, Rey, and Ricky have the following capital
balances just prior to Ricky's withdrawal from the partnership:
Rick P 135,000
Rey 105,000
Ricky 60,000
The partners share profits and losses in the ratio of 3:3:4, respectively.
Required: If the partners agree that the partnership will purchase Ricky's
interest for P96,000, what will be the balance of Rick's capital immediately
after the withdrawal of Ricky?
Answer not given
135,000
Correct! 117,000
105,000
138,000
Partners Renee, Reina, and Rebecca share profits and losses in a 5:3:2
ratio, respectively. Renee wishes to leave the partnership. The assets are
revalued and are found to be overvalued by P108,000. Each partner had
a capital balance of P360,000 prior to Renee's notification of withdrawal.
Required: What amount should Renee be allowed to withdraw from the

partnership?
324,000
252,000
414,000
Correct! 306,000
Quiz Score: 40 out of 50

Chapter Exam - Partnership Dissolution - 3

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7/13/23, 8:23 PM Chapter Exam - Partnership Dissolution: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION

Chapter Exam - Partnership Dissolution

This quiz was locked Jul 5 at 11:20am.

Score for this quiz: 40 out of 50

Which of the following statements is (are) correct?

Only the second statement is correct

Only the first statement is correct

Both statements are correct

Correct! Neither of the statements is correct

III. A partnership is not dissolved when a new partner is admitted to the

False, false, true

True, false, true

True, false, false

Correct! False, false, false

False, true, false

Which of the following statements is (are) correct?

Only the first statement is correct

Correct! Neither of the statements is correct

Both statements are correct

Only the second statement is correct

Which of the following statements is correct about admission of a new

II. The admission of a new partner by investment in the partnership will

Both statements are correct

Only the second statement is correct

Only the first statement is correct

Correct! Neither of the statements is correct

A. The remaining partners receive a bonus.

B. The withdrawing partner receives a bonus.

C. No bonus results.

It is the amount of capital or equity transferred by one partner to another

Total agreed capital

Total contributed capital

It is computed by multiplying the total agreed capital by the percentage

Total agreed capital

Total contributed capital

Correct! Capital credit

Which of the following statements is (are) true about admission by

Neither of the statements is true

Only the first statement is true

Correct! Both statements are true

Only the second statement is true

Which of the following statements is (are) true?

Correct! Both statements are true

Only the first statement is true

Only the second statement is true

Neither of the statements is true

Which of the following statements is (are) not true?

orrect Answer Statements I and II

None of the statements

ou Answered Staement II only

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

A. Admission of a new partner

B. Withdrawal of a partner

C. Sale of partnership assets

D. Death of a partner

E. None of the above

A. The difference should be debited to the remaining partners in their

B. The difference should be credited to the remaining partners in their

D. The new partner

Which of the following statements is (are) correct?

I. An admission by purchase of interest from one or more of the existing

II. Admission by investment may result to a bonus given to the new