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2nd Assignment

A partnership differs from a sole proprietorship in areas like formation, profit distribution, dissolution and liquidation. The basic purpose of organizing a partnership is to earn profits and divide them among the partners. A creditor can pursue the personal assets of a general partner but not limited partners.

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449 views

2nd Assignment

A partnership differs from a sole proprietorship in areas like formation, profit distribution, dissolution and liquidation. The basic purpose of organizing a partnership is to earn profits and divide them among the partners. A creditor can pursue the personal assets of a general partner but not limited partners.

Uploaded by

Friekis Tan-gan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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True or False (ASSIGNMENT IN ½ CW PAPER)

Instruction: Write letter “T” if the statement is true and “F” if false.
1. Partnership differs from a sole proprietorship in the areas of
formation, profit distribution, dissolution and liquidation.
2. In a sole proprietorship, there is only capital and drawing account
as there only being one owner.
3. One advantage of a partnership over sole proprietorship is when
there is net loss because it can be shared to the other partners.
4. The basic purpose of organizing a partnership is to earn profits
and divide the said profits among the partners.
5. The partnership form of business organization is suited to the
practice of profession because of personalize nature of the
services offered by professionals.
6. It is a voluntary act of a person to become a partner in a
partnership.
7. An industrial partner shares only in profits but not in losses.
8. An industrial Partner is like a general partner is also liable to
partners’ debts up to the extent of his personal assets.
9. A partner who contributes labor and skills t the partnership is said
td be an industrial partner.
10. An industrial partner is admitted into the partnership by means
of a memorandum entry only.
11. A contract of partnership maybe oral or written, expressed or
implied.
12. In a limited partnership there should at least being one general
partner to assume the Partnership obligation.
13. In a limited partnership all partners are limited partners.
14. A creditor can run after the personal assets of general partner
but not the limited partners.
15. In a general Partnership all partners are general partners.
16. A Partnership must be in writing when the capital of the
partnership is P3,ooo or more.
17. General professional partnerships are exempted from the 30%
income tax rate except the respective partner’s share in profit
whether distributed or not are subject to tax.
18. Non-general professional partnerships are subjected to 30%
income tax rate except the respective partners’ share in profit.
19. All partnerships are subject to tax at the rate of 30% of taxable
income.
20. A public instrument needs to be executed when immovable
property or real
rights are contributed to the partnership.
21. The manner in which profits and losses are to be divided should
be stipulated in the partnership contract.
22. When the non-cash assets are invested in the partnership these
are recorded “at cost.”
23. To restate that value of an old asset to conform with its market
value is termed as “asset revaluation.
24. By fair market value, we mean the “estimated price of asset that
the seller is willing to sell and the buyer is willing to buy in on
open market.”
25. In revaluing the non-cash assets which has no “contra-assets” or
“asset offset” the amount of adjustment is reflected in the asset
itself.
26. Adjustments prior to formation of partnership may be omitted
since these will not affect in any manner to the partner’s capital.
27. The newly formed partnership is not allowed to use any of the
books of the sole proprietors.
28. When a partner’s liability is assumed by the partnership, the
capital credit of that partnership reduces equal to the amount of
liability assumed by the partnership.
29. CPA’s in the Philippines can already form a corporation in-the
practice of accounting profession pursuant to Philippine
Accountancy Law of 2004 (WA- 9298).
30. A partnership like that of a sole proprietorship has a personality
that is separate and distinct from the partners.
31. A partnership must always have at least two owners.
32. Juridical persons or entity are not allowed to form a partnership
business.
33. A partnership is formed to recognize one’s ownership rights over
a particular property.

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