1. S1: Admission of a new partner by investment generally increases the total assets and capital of the new partnership unless there is a negative asset revaluation.

S2: Admission of a ne partner by purchase of interest will never affect the total assets and capital of the new partnership.

1. S1 is false; S2 is true
2. Both are false
3. Both are true
4. S1 is true;S2 is false

2. S1: In lumpsum liquidation the remaining cash available after realization and payment of liquidation expenses will always be equal to the total interest of the partners

S2: In installment liquidation, the partner who has the highest absorption capacity shall be prioritized in the payment of interest

1. S1 is false; S2 is true
2. Both are false
3. Both are true
4. S1 is true;S2 is false

3. S1: Loans receivable of the partnership from the partners are deducted from the capital balances of a partner to compute his total interest.

S2: In elimination of capital deficiency, if the deficient partner has an excess personal assets over personal liabilities, the deficient partner directly invests additional cash to eliminate his capital deficiency

1. S1 is false; S2 is true
2. Both are false
3. Both are true
4. S1 is true;S2 is false