30 Chapter 1 - Accounting for Partnership Formation & Operation Chapter 1 11. When the investment of the new partner exceeds the new partners' initial 15. W capital balance, the bonus is credited to intoous Indigen A 6 a. The new partner. b. The old partner based on their old profit and loss ratio. c. The old partner based on their capital ratio. d. The old and new partner based on relative profit and loss ratio. 12. Which of the following transactions shall not affect the capital balance of 16. T partner? a. Share of a partner in the partnership' net loss. edi an b b. Receipt of bonus by a partner from another partner based on the josixs ort b agreement. c. Advances made by the partnership to a partner. and) . d. Additional investment by the partner to the partnership. 13. In the absence of agreement as to distribution of profit, how shall the 17. partnership profit be distributed to the partners? xsi gignie a. The industrial partner shall receive a share equivalent to the least share of a capitalist partner while the capitalist partners shall share based on capital contribution ratio. b. The industrial partner shall receive a just and equitable share and the remainder shall be distributed to the capitalist partners on the basis of capital contribution ratio. 18 c. The profit shall be distributed on the basis of loss contribution ratio which may have been agreed upon by the partners. gril le ed. The profit shall be distributed equally to all partners including the industrial partner. to an 14. Under what circumstances can the closing of Income Summary account results in a debit to one partner's capital account and credits to the other partners' capital accounts? 1 terd Inuon a. The results of operations are divided in a profit and loss ratio and the partnership sustained a loss for the period.guns b. The partnership agreement provided for interest on capital and salary allowances and net income is less than the sum of the interest and salary allowances.of back ? c. The results of operations are allocated in a profit and loss ratio and the partnership's net income was very low. s of d. The results of operations are divided in the average capital ratio and one partner had a low capital balance. bigy slosblov d