Reference no: EM133039823

Questions -

Q1. Statement 1: Forming a partnership requires two or more people agreeing to be partners contributing all of their personal properties. Statement 2: Oral agreements of partners are not allowed.

Both statements are true.

Statement 2 is true.

Both statements are false.

Statement 1 is true.

Q2. Partners Alyssa and May divide profits and losses 6:4 with capital balances of $540,000 and $670,000 respectively. They agreed to admit Nica by her purchase of 1/4 of Alyssa's interest for $300,000. They agreed to write off Accounts Receivable worth $10,600. Fixed assets were under-depreciated by $30,000. Payments of accounts payable in the amount of $8,600 was not posted to the payable account. How much should be debited to Alyssa's interest?

Q3. Juanda and Poppy are partners who share profits and losses in the ratio of 3:2 respectively. Juanda's salary is $180,000 and Poppy's is $140,000. The partners are paid interest on their average capital balances where Juanda received interest of $30,000 and Poppy, $15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If Juanda received $280,000 from partnership income, how much was the total partnership income?

Q4. The partners of AAA Partnership are Delia, Nada, and Romina. During the current year, their average capital balances are as follows: Delia - $180,000; Nada - $160,000; Romina - $150,000. The articles of partnership provided the following terms: 1. Annual interest of 8% on their average capital balances. 2. Salary allowances as follows: Delia - $50,000 and Nada - $80,000. 3. Nada shall receive bonus of 15% of income in excess of $40,000 after partner's interest and salary allowances. 4. Residual profits shall be divided in the ratio of 2:2:6 to Delia, Nada and Romina. How much will Ana receive if the net income earned is $470,000?