15.3 Changes in partnership structure

• When a new partner joins a partnership, the total number of partners increases
• What do partnership structure changes refer to?

  Changes in partners' roles
• A partner retiring or leaving a partnership decreases the total number of partners.


  True
• What happens to profit/loss sharing ratios when a partner retires?

  They are redistributed
• When a new partner joins, the total capital of the partnership increases
• When a partner retires, the total capital of the partnership decreases.

  True
• When a new partner joins, the profit/loss sharing ratios are altered
• What is modified during a change in capital/profit shares?

  Capital contributions and profit/loss shares
• A partner retiring or leaving a partnership decreases the total number of partners.


  True
• When a new partner joins, the profit/loss sharing ratios are altered
• What is modified during a change in capital/profit shares?

  Capital contributions and profit/loss shares
• When a partner retires, the total capital of the partnership decreases.


  True
• How does a new partner joining a partnership affect the partnership's capital accounts?

  Increases total capital
• What is modified when there is a change in capital or profit shares?

  Individual partner's shares
• A new partner joining a partnership occurs when a new partner is admitted
• When a partner retires, the profit/loss sharing ratios must be updated.


  True
• What type of partnership structure change involves adjusting capital contributions or profit/loss sharing ratios?

  Change in capital/profit shares
• When a partner retires, the total capital of the partnership increases.

  False
• When a new partner joins, the total number of partners increases
• What happens to profit/loss sharing ratios when a partner retires?

  They are redistributed
• When a partner retires, the total capital of the partnership increases.

  False
• What is the impact of a new partner joining a partnership on profit/loss sharing ratios?

  Ratios are altered
• A change in capital/profit shares modifies individual partners' capital contributions and profit/loss shares
• When a partner retires, their capital account is debited.


  True
• What account is credited when a new partner joins a partnership?

  New Partner’s Capital
• When capital or profit shares change, capital accounts are adjusted based on new contributions
• When a partner leaves a partnership, the remaining partners' profit/loss shares are redistributed.


  True
• What is the impact of a new partner joining a partnership on profit/loss sharing ratios?

  Ratios are altered
• A change in capital/profit shares adjusts capital contributions and profit distribution
• When a new partner joins, the total capital of the partnership increases
• Match the type of change with its impact:

  New Partner Joining ↔️ Increases total capital, alters ratios

  Partner Retiring/Leaving ↔️ Decreases total capital, alters ratios

  Change in Capital/Profit Shares ↔️ Modifies contributions and profit distribution
• When a new partner joins, the profit-sharing ratios of the partnership must be changed
• What happens to the partnership's total capital when a partner retires?

  It decreases
• Changes in capital or profit shares modify both contributions and profit distribution.


  True
• Match the type of change with its impact on capital accounts:

  New Partner Joining ↔️ Increases capital

  Partner Retiring/Leaving ↔️ Decreases capital

  Capital/Profit Share Changes ↔️ Adjustments as per agreement
• When a partner leaves, their capital account is debited, and cash or assets are credited.


  True
• When a new partner joins, the profit-loss sharing ratios are altered
• What adjustments are made to capital accounts when profit shares change?

  Adjustments as per new agreement
• When a partner retires or leaves the partnership, the total capital of the partnership decreases
• What happens to the partnership's total capital when a new partner joins?

  Increases