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    Partnership Formation: Only Statement 1 Is True

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    Von Andrei Medina
    The document discusses key aspects of partnership formation and structure: 1. A partnership dissolves if the relationship between partners changes. A limited partnership limits a general partner's liability to their investment. 2. In a general partnership, all partners are personally liable for partnership debts. A limited partnership must have at least one general partner. 3. Partners' capital account allocations are based on capital contributions, not profits or assets. Equal sharing of profits and assets between partners does not necessarily mean equal capital accounts.

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    Partnership Formation: Only Statement 1 Is True

    Uploaded by

    Von Andrei Medina
    194 views1 page
    The document discusses key aspects of partnership formation and structure: 1. A partnership dissolves if the relationship between partners changes. A limited partnership limits a general partner's liability to their investment. 2. In a general partnership, all partners are personally liable for partnership debts. A limited partnership must have at least one general partner. 3. Partners' capital account allocations are based on capital contributions, not profits or assets. Equal sharing of profits and assets between partners does not necessarily mean equal capital accounts.

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    PFEA 2

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    The document discusses key aspects of partnership formation and structure: 1. A partnership dissolves if the relationship between partners changes. A limited partnership limits a general partner's liability to their investment. 2. In a general partnership, all partners are personally liable for partnership debts. A limited partnership must have at least one general partner. 3. Partners' capital account allocations are based on capital contributions, not profits or assets. Equal sharing of profits and assets between partners does not necessarily mean equal capital accounts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    194 views1 page

    Partnership Formation: Only Statement 1 Is True

    Uploaded by

    Von Andrei Medina
    The document discusses key aspects of partnership formation and structure: 1. A partnership dissolves if the relationship between partners changes. A limited partnership limits a general partner's liability to their investment. 2. In a general partnership, all partners are personally liable for partnership debts. A limited partnership must have at least one general partner. 3. Partners' capital account allocations are based on capital contributions, not profits or assets. Equal sharing of profits and assets between partners does not necessarily mean equal capital accounts.

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    PARTNERSHIP FORMATION

    1. 1. A partnership has a limited life because any change in the relationship of the partners dissolves the
    partnership.
    2. In a limited partnership, the general partner’s liability is limited to his investment.
    Only statement 1 is true

    2. 1. All partners in a general partnership are personally liable for all debts incurred by the partnership.
    2. A limited partnership must have at least one general partner.
    Both statements are true

    3. Which of the following statements about partnerships is incorrect?


    Right over profits and right over assets represent claims of partners that are allocated based on
    partners’ capital accounts.

    4. 1. A limited partnership normally has one or more general partners whose liability is unlimited.
    2. A partnership is a legal entity separate and apart from its owners.
    Both statements are true

    5. Airamae and Aimery agreed to form AiAi Partnership. Airamae’s business which amounted to P50,000
    was audited and appraised at 75% of its book value.

    If they agreed that Aimery should invest cash equal to 60% of Airamae’s investment, Aimery should
    invest?
    P225,000

    If they agreed that Aimery should invest P325,000 cash and that each partner should be credited for an
    equal share based on total actual contributions, Airamae’s capital credit should be
    P375,000
    P350,000
    P412,500
    P500,000

    If they agreed that Aimery should invest cash equal to 60% of Airamae’s investment, the total
    partnership capitalization would be
    P600,000

    If they agreed that Aimery should invest P325,000 cash and that each partner should be credited for an
    equal share based on total actual contributions, the bookkeeper should recognize
    Bonus for Airamae
    Bonus for Aimery
    Goodwill for Aimery
    Goodwill for Airamae

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