1.

Dissolution does not always result to liquidation, although liquidation is always preceded by
dissolution. True
2. Only admission of a new partner by purchase of interest necessitates adjustments of
noncurrent assets into its fair market value. False
3. There can be partnership dissolution without liquidation but no liquidation can take place
without first having the partnership dissolved. True
4. Bonus is given to the withdrawing partner when he is paid more than his interest in the
partnership. True
5. When the existing partners give bonus to new partner, the existing capital accounts of the
partners' capital accounts are credited. False
6. There is a Bonus to old partners when total agreed capital is equal to the total capital
contribution of the partners and the new partner's agreed capital is not equal to his capital
contribution. True
7. The amount of money that the buying partner pays to selling partner will go to the partnership
and not to the partners concerned. False
8. Dissolution causes the termination of the partnership. False
9. Partnership dissolution is always followed by partnership liquidation. False
10. If the partnership is dissolved with the death of one of the partners, the remaining partners
may continue the partnership under a new partnership name. True
11. The partnership may be dissolved by mere agreement among partners. True
12. Partnership liquidation is always preceded by partnership dissolution. True
13. The admission of a new partner brings about a new association of persons even if the
partnership is not liquidated. True
14. The admission of new partner either by purchase of existing partner's interest or by
investment of new assets in the partnership will result to an increase in the total partnership's
assets. False
15. Admission of a new partner by investment under the bonus method will result to a condition
where the total contributed capital is more than the total agreed capital. False
16. When the capital of a retiring partner is to be bought by the partnership, this will result to a
decrease in the total partnership's asset even if his interest is to be retired at an amount lower
than its book value. True
17. If the partnership is dissolved because of insolvency, all the general partners must
contribute the additional amount to fully pay the third party creditors. False
18.The personal creditors of the general partner have a better claim to the partner's personal
assets than the creditors of the partnership. True
19. A partnership has a limited life. Any change in the relationship of the partners dissolves it.
True
20. Total contributed capital, which is the sum of the capital balances of the old partners and the
actual investment of the new partner, should always be equal to the new partnership capital.
False
21. When a partner withdraws from a partnership, an appraisal of all partnership assets needs
to be made. True
22. Bankruptcy of a partner will dissolve the partnership. True
23 It is possible to invest cash and non-cash assets into a partnership yet be given a zero
starting capital balance. True
24. A partnership is both easy to form and dissolve. True
25. When a newly admitted partner gives a bonus to the existing partners, the old partner's
capital account is debited to record such bonus. False

1. There can be partnership dissolution without liquidation but no liquidation can take

place without first having the partnership dissolved

●True
●False

2. Bonus is given to the withdrawing partner when he is paid more than his interest in the
partnership

●True
●False

3. When the existing partners give bonus to new partner, the existing capital accounts of the
partners' capital accounts are debited

●True
●False

4. There is a Bonus to old partners when total agreed capital is equal to the total capital
contribution of the partners and the new partner's agreed capital is not equal to his capital
contribution

●True
●False

5. The amount of money that the buying partner pays to selling partner will go to the
partnership and not to the partners concerned
●True
●False

6. Dissolution causes the termination of the partnership

●True
●False

This study source was downloaded by 100000841182535 from CourseHero.com on 04-28-2022

02:00:47 GMT -05:00
https://www.coursehero.com/file/118398528/Partnership-Dissolution-Quiz-with-answ

Test II. Problem Solving (3 points each)

1. Alona purchase 1/2 equity in the partnership from Alma and AJ for 2,200,000. Payment is to be made
directly to the partners. Alma and AJ will retain 1/2 of their respective equities and transfer the other
halves to Alona.
2. Alona invests 4 million to the partnership receiving 50% interest in the partnership.
3. Alona invests 2,400,000 in the partnership and receives 50% interest in capital and income. All
partnership assets and liabilities are fairly valued.
4. Alona invest 2,880,000 in the partnership and receives 50% interest in capital and profit. The bonus to
Alona will be charged against Alma and AJ in the ratio of 3:2 respectively.