252 PARTNERSHIP AND CORPORATION ACCOUNTING 6. Upon dissolution, the partners may agree to adjust the partn assets and liabilities. The net effect of such restatement of assets and liabilities must be adjusted to the respective partners'cani balances based on their a. ending capital balances. b. old profit and loss ratio. c. new profit and loss ratio. d. beginning capital balances 7. Which of the following is not corret regarding the admission of a neu. partner? a The admission of a new partner needs the consent of each of the old b. The admission by purchase of interest of an existing partner need c. The admission of a new partner by direct investment in the d. The admission partners. not have the consent of remaining partners. partnership must have the consent of all the existing partners. investment in the partnership will result in the dissolution of the of a new partner either by purchase or by direct existing partnership. 8. If the new partner is admitted by purchase of interest of an old partner at an amount higher than its book value, this will result in a. the increase in total partnership's capital. b. the decrease the partnership's net assets. c. no change in partnership's net assets. d. no change in old partner's capital. 9. The admission of a new partner by direct investment in the partnership will result in the increase a. in partnership's assets. b. in total partnership's capital c. the old partners' capital. d. the partnership's assets and total capital. 10. If ever bonus is agreed to be recognized in the admission of new partner by direct investment in the partnership, a. bonus is recorded as debit in the partnership's books. b. bonus is recorded as credit in the partnership's books. c. bonus to new partner will make the capital credit to admitted partner more than his capital contributed. d. bonus to old partner will make the capital credit of the admitted partner more than his capital contributed