Reference no: EM133039845

Questions -

Q1. Partners John and Paul divide profits and losses 6:4 with capital balances of P 540,000 and P670,000 respectively. They agreed to admit Peter by his purchase of one-fourth of John's interest for P300,000. They agreed to write off Accounts Receivable worth P 10,600. Fixed assets were under-depreciated by P 30,000. Payments of accounts payable in the amount of P 8,600 was not posted to the payable account. What amount shall be debited to John's interest?

a. P127,620

b. P128,910

c. P130,200

d. P300,000

Q2. Moose, Booze and Goose are partners with capital balances of P 320,000, P 450,000 and P 520,000 respectively with profit and loss sharing ratio of 2:3:5 respectively. The firm owes Booze P 20,000. Upon liquidation, P 390,000 is available for distribution to the partners. What amount of cash will Moose receive?

a. P78,000

b. P136,000

c. P258,000

d. P320,000

Q3. Alpha, Beta, and Gamma are partners who have capital balances of P480,000, P500,000 and P186,000 respectively. P/L is distributed in the ratio of 4:2:1. Beta received P260,000 as a result of liquidating the partnership when 60% of the noncash assets of the partnership is realized. The partnership has total assets totaling to P500,000 including P50,000 cash before liquidation. The partnership also incurred P35,000 liquidation expenses and withheld P28,000 for the unpaid liabilities of the partnership. What is the loss on realization of noncash assets?

a. 632,000

b. 875,000

c. 855,000

d. 612,000