Chapter 12

The image is an example of

• No Capital Deficiency

• Partner Pays Deficiency

• Partner Cannot Pays Deficiency

Partner A has $48,000 in cap and Partner B has $32,000 cap. The incoming partner invest $50,000 for $30,000 of capital in the partnership. The new Capital is A $60,000, B $40,000, and C $30,000. This is an example of

• Bonus to old partners.

• Bonus to new partner.

• Bonus to withdrawing partner.

• Bonus to Remaining partner.

When is allocation not according to the partnership agreement?

• Cash Distribution to the Partners.

• Bonus to Remaining Partners

• Bonus to Withdrawing Partner

• Capital Deficiency

Partner A has $50,000 in cap, Partner B has $30,000 cap, and Partner C $20,000. Partner C receives $18,000 when withdrawing from the partnership. New Capital is A Cap $51,200 and B $30,800. This is an example of

• Bonus to old partners.

• Bonus to new partner.

• Bonus to withdrawing partner.

• Bonus to Remaining partner.

Beginning capital balances for Zayn is $30,000 and Perez is $10,000. Given this information what ratio is this journal entry?

• Stated Ratio

• Capital Balances

• Services, Capital, and stated Ratio

Income and loss is allocated to partners and once that is done allowances are allocated.

• True

• False

Only one partner can be individually liable for all of the debts of the partnership.

• True

• False