shal first be 7. Statement 1: As a rule, persona , the personal assets of the partners s In general, insolvency arises when a busi ot pay outstanding obligations as they mature. 8s (or applied to their respective person nal creditors. a. Only statement 1 is true b. Only statement 2 is true c. Both statements are true. . d. Both statements are false If bonus is traceable to the existing partners, it is allocated among them according to the a. profit or loss agreement of the existing partnership b. profit or loss agreement of the new partnership. c. capital ratio of existing partners d. bonus to incoming partner. 8. 9. Which of the following best describes the admission of new partner by investing an amount more than his capital credit under the bonus method? No effect Increase Decrease No effect Increase Decrease No effect 10. Which of the following best describes the admission of a new investing an amount lesser than his capital credit under the method? partner by bonus No effect Increase Decrease No effect Increase Decrease No effect