Chapter Exam - Partnership Dissolution - 3
Chapter Exam - Partnership Dissolution - 3
Chapter Exam - Partnership Dissolution - 3
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.
Attempt History
Attempt Time Score
LATEST Attempt 1 36 minutes 40 out of 50
Question 1 2 / 2 pts
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.
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7/13/23, 8:23 PM Chapter Exam - Partnership Dissolution: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
Question 2 2 / 2 pts
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.
Question 3 2 / 2 pts
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.
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II. The admission of a new partner under the bonus method will result in
bonus to the old partners only.
Question 4 2 / 2 pts
I. In admission by purchase of interest, gain or loss arising from the sale
of interest is recorded in the partnership books.
Question 5 2 / 2 pts
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7/13/23, 8:23 PM Chapter Exam - Partnership Dissolution: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
A partner sold his interest to the partnership for an amount less than his
capital balance. Which of the following statements is correct?
D. The remaining partners owe the withdrawing partner the difference.
Correct! A
C
B
D
Question 6 2 / 2 pts
Correct! Bonus
Capital credit
Question 7 2 / 2 pts
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7/13/23, 8:23 PM Chapter Exam - Partnership Dissolution: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
Bonus
Question 8 2 / 2 pts
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.
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7/13/23, 8:23 PM Chapter Exam - Partnership Dissolution: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
Question 9 2 / 2 pts
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.
Question 10 0 / 2 pts
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.
Statement I only
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7/13/23, 8:23 PM Chapter Exam - Partnership Dissolution: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
Question 11 0 / 2 pts
D
orrect Answer C
ou Answered E
B
A
Question 12 2 / 2 pts
When a partner retires and receives in cash less than his capital balance,
how should the difference be treated?
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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
Question 13 2 / 2 pts
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
Correct! B
A
C
D
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7/13/23, 8:23 PM Chapter Exam - Partnership Dissolution: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
Question 14 2 / 2 pts
Question 15 0 / 2 pts
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.
Question 16 0 / 4 pts
Required: Compute the capital balance of the remaining partners after the
retirement of Rosa.
Question 17 4 / 4 pts
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.
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0
45,000
Correct! 25,000
20,000
Question 18 4 / 4 pts
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.
1,560,000
Correct! 1,680,000
1,200,000
1,470,000
Question 19 4 / 4 pts
The partnership of Rick, Rey, and Ricky have the following capital
balances just prior to Ricky's withdrawal from the partnership:
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7/13/23, 8:23 PM Chapter Exam - Partnership Dissolution: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
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?
135,000
Correct! 117,000
105,000
138,000
Question 20 4 / 4 pts
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.
324,000
252,000
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414,000
Correct! 306,000
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