Reference no: EM133091064
Questions -
Q1. Samantha Company had the following account balances at the end of May of the current year: Cash P48,500; Trading Securities P32,800; Receivables P72,300; Inventories P37,490; Machinery & Equipment P678,100; Furniture & Fixtures P100,640; Prepayments P85,280; Building P700,200; Patents P76,460; Trademark P56,790; Accounts Payable P276,420; Unearned Revenues P54,750; Bonds Payable P290,000; Mortgage Payable P12,370; Accrued Expenses P7,890; Interest Income P32,000; Service Revenue P765,340. Compute for the capital:
a. 1,427,130
b. 1,247,130
c. 2,044,470
d. 2,012,470
Q2. George and Vivian formed GV Partnership in 2020. The partnership agreement provides for annual salary allowances of P 55,000 for George and P 45,000 for Vivian. The partners share profits and losses in a 60/40 ratio. The partnership had earnings of P 80,000 for 2020 before any allowance to partners. What amount of these earnings should be credited to the capital account of George and Vivian respectively?
a. P 40,000; P 40,000
b. P 44,000; P 36,000
c. P 45,000; P 35,000
d. P 43,000; P 37,000
e. answer not given
Q3. Partners X, Y and Z divide profits and losses 5:3:2 respectively. On July 1, 2020, A is admitted as a new partner with a 20% interest in capital and earnings in exchange for cash investment. Prior to A's admission, the capital balances of the partners are as follows: X: P 148,000; Y: P 260,000; Z: P192,000. How much cash should A contribute?
a. P 160,000
b. P 144,000
c. P 150,000
d. P 120,000
e. answer not given
Q4. Rosemarie and Rose are partners sharing profits and losses in the ratio of 7:3 respectively. On February 14, 2020, their respective capital balances are as follows: Rosemarie: P 35,000; Rose: P 30,000. On that day, they agreed to admit Rosauro as partner with one third interest in the capital and profits and losses upon investment of P 25,000. The new partnership will begin with a total capital of P 90,000. Immediately after the admission of Rosauro, the capital balances of Rosemarie, Rose and Rosauro respectively must be:
a. P 30,000; P 30,000; P 30,000
b. P 31,667; P 28,333; P30,000
c. P 31,500; P 28,500; P 30,000
d. P 35,000; P 25,000; P 30,000
e. answer not given
Q5. Partners A, B and C had the following balances prior to admission of D: A, Loan (debit): P 20,000; B, Loan (credit): P 60,000; A, Capital (debit): P 30, 000; B, Capital (credit): P 120,000; C, Capital (credit): P 70,000. Partners A, B and C share profits and losses in the ratio 5:2:3 respectively. D is admitted in the partnership for a 20% interest in the partnership in exchange for an investment of P 40,000 cash. Prior to admission of D, the partners agreed to increase the carrying value of inventories by P 60,000 in order to bring it to its fair value. Immediately after the admission, the capital credit of D would be:
a. P 46,000
b. P 52,000
c. P40,000
d. P60,000
e. answer not given