If statement is TRUE. If statement is FALSE. 21. A partnership may be dissolved at any time by any of the partners a b 22. In the admission of a new partner by investment, it is required that contributed capital must equal the agreed capital 23. The agreed capital can never be less than the total invested capital. 24. When a new partner is admitted, the partnership may continue its operations based on a new contract among the partners 25. When a new partner invests more than the capital he/she is to be credited, included in the entry to record the new partner's investment is an increase in the old partners' capital acCounts 26. A new partner may be admitted into the partnership with the consent of the majority of the old partners. 27. Admission of a new partner by purchase of interest is a personal transaction between the selling and the buying partner. Hence, any gain or loss in the transaction is not recognized in the partnership books 28. Asset revaluation may be recorded upon admission of a new partner whether by purchase or investment. 29. Asset revaluation affects total assets and capital but bonus affects only total capital. 30. The dissolution of a partnership always followed by the winding up of partnership affairs. is Dissolution of a partnership is equivalent to the termination of the business. 31. 32 The terms dissolution and liquidation are not synonymous. 33. A partnership is said to be liquidated when the original association for purposes of carrying on activities has ended. The general partner is liable for the liabilities of the partnership up to the extent of his personal 34. assets. The cash settlement of all liabilities is referred to as realization 35 The liquidation ratios will always be equal to the profit and loss ratio of the partners. 36. 37. When a partnership goes out of business, all the remaining non-cash assets will be declared as a total loss. This loss on liquidation shall be divided among the partners in their profit and loss ratio Liquidation is always preceded by dissolution, but dissolution is not always followed by liquidation. 38 39 In lump-sum liquidation, the distribution of cash to partners is made only after all the non-cash assets have been realized. the total amount of gain or loss on realization has been determined and distributed, and all liabilities have been paid 40 The final distribution of cash to the partners shall be made based on their profit and loss sharinn agreement