When a new partner pays a bonus to join an existing partnership,the bonus amount is the amount in excess of his or her proportionate share of the total capital of the new partnership.

Question

Quizplus · Accepted Answer

The bonus paid by the new partner is typically in excess of their proportionate share of the total capital of the partnership, as it is intended as an incentive for the existing partners to admit them into the partnership. Therefore, the statement is true.

When a New Partner Pays a Bonus to Join an Existing