Final answer:
It is true that when a partner withdraws from a partnership and is paid more than their capital account balance, the partnership is paying a bonus to the withdrawing partner.
Step-by-step explanation:
When a partner withdraws from a partnership and the partnership pays an amount greater than the balance in the partner’s capital account, it is effectively granting a bonus to the withdrawing partner. This is true. The partner’s capital account reflects their equity in the partnership. If the payment for withdrawal exceeds this amount, the excess payment represents a bonus, as it goes beyond the partner’s existing capital value in the business. A T-account is a visual representation separating a firm's assets from its liabilities and net worth. In the context of a partnership, the assets, liabilities, and partners’ capital accounts would be reflected within such a T-account, helping to illustrate the financial position before and after the withdrawal and any bonus payments.