30 Chapter 1 - Accounting for Partnership Formation & Operation initial 15. Which of the following will decrease the capital balance of a partners? a. Share in partnership profit. not santagino howgro b. Receipt of share in revaluation surplus from a partnership plant and equipment. les to c. Drawing made by a partner.1 ston giovanni io. d. Advances made by a partner to the partnership. nce of 16. The GM partnership agreement provides for G to receive a 20% bonus on profits before the bonus. Remaining profits and losses are divided between G and M in the ratio of 2 to 3, respectively. Which partner has a on the greater advantage when the partnership has a profit or when it has a loss? Milos Profit Loss Profit Loss M G b. G M M all the 17. If there is an agreement for the division of profits but none for losses, it is concluded that: least all ma. Losses should be divided according to original capital ratio. ES shall b. Losses should be divided equally. c. Losses should be divided according to average capital ratio. e and d. Losses should be divided in the same way as profits. .d on the and 18. An amount withdrawn by the partner in excess of the agreed amount that pution can be withdrawn is a. Debited to a loan account ng the jo anrom b. Debited to capital account blow antwollot urff to robinW ts 10 Insings C. Considered an expense d. Debited to drawing account count other 19. If the partnership agreement provides a formula for the computation of a bonus to the partners, the bonus would be computed o and a. next to last, because the final allocation is the distribution of the ally profit residual. 1 and db. before income tax allocations are made.qidemanding A es of the vote d c. after the salary and interest allocations are made. old. in any manner agreed to by the partners. mismo: ratio 20. Drawings noa. are advances to a partnership. Il ad Elyrow Feof off ratio b. are loans to a partnership. blow sbothpenned and c. are function of interest on partnership average capital. d. have the same nature as withdrawals