Reference no: EM132945439
Questions -
Q1. On August 20, 2020, T, U, and V form a partnership investing cash of P105,000.00; P94,500.00; and P29,400.00, respectively. The partners share profits 3:2:2 and on November 30, 2020, they have cash of P7,000.00 and other assets of P332,500.00; liabilities are P179,200.00. On this date they decided to go out of business and sell all assets for P210,000.00. V has personal assets of P10,500.00 that may, if necessary, be used to meet partnership obligations. What is the amount received by partner U at the end of liquidation?
a. P34,020.00
b. P14,280.00
c. P28,000.00
d. P0.00
Q2. V and A are partners having capital balances of P150,000.00a nd P180,000.00, respectively, and sharing profits and losses equally. They admit L to a 1/3 interest in the partnership capital and profits for an investment of P195,000.00. If the asset revaluation method is used in recording the admission of L to the partnership, which of the following statements are true?
a. L Capital will be P175,000.00
b. Total Capital will be P525,000.00
c. A Capital will be P210,000.00
d. Asset Revaluation will be at P45,000.00
Q3. On January 1, 2020, A, B, and C organized ABC Partnership with equal capital contributions. The new partnership business started its operation on July 1, 2020. On January 1, 2021, D is admitted as a new partner in ABC Partnership by acquiring half of the capital interest of Partner A with a balance of P200,000.00 at a purchase price of P120,000.00. In the absence of other relevant facts, what is the effect of admission of D in the financial position of the existing partnership on January 1, 2021?
a. It will increase the total equity of the partnership by P20,000.00
b. It will increase the total assets of the partnership by P120,000.00
c. It will neither affect the total assets nor the total equity of the partnership
d. It will decrease the total equity of the partnership by P100,000.00
Q4. DD admits EE as a partner in business. Accounts in the ledger of DD on November 30, 2020, just before the admission of EE, shows the following balances: a) Cash - P6,800.00; b) Accounts Receivable - P14,200.00; Merchandise Inventory - P20,000.00; d) Accounts payable - P8,000.00; and CC, Capital - P33,000.00; It is agreed that for purpose of establishing DD's interest, the following adjustments shall be made: a) An allowance for doubtful accounts of 3% of accounts receivable is to be established; b) The merchandise inventory is to be valued at P23,000.00; c) Prepaid salary expenses of P600.00 and accrued rent of P800.00 are to be recognized. EE is to invest sufficient cash to obtain a 1/3 interest in the partnership. The amount of cash investment by EE:
a. P11,971.00
b. P14,087.00
c. P17,687.00
d. P18,487.00
Q5. A partnership begins its first year with the following capital balances: Adonis Capital - P60,000.00; Benjamin Capital - P80,000.00; and Charles Capital - P100,000.00. The Articles of Partnership stipulates that profit and losses shall be assigned in the following manner: a) Each partner is allocated interest equal to 10% percent of the beginning capital balance; b) Benjamin is allocated compensation of P200,000.00 per year; c) Any remaining profits and losses are allocated on a 3:3:4 basis, respectively; d) Each partner is allowed to withdraw up to P5,000.00 cash per year. Assuming that the net income is P50,000.00 and that each partner withdraws the maximum amount allowed, what is the balance of Adonis, Benjamin and Charles capital account at the end of the year?
a. P62,800.00; P108,400.00; P105,800.00
b. P68,200.00; P109,800.00; P106,200.00
c. P67,800.00; P103,000.00; P106,900.00
d. P62,800.00; P104,800.00; P107,400.00
Q6. On January 1, 2020, A, B, and C organized ABC Partnership by investing P15,000,000.00, P6,000,000.00 and P9,000,000.00 for capital interest ratio of 4:5:1 respectively. C has been appointed as managing partner. During 2020, ABC partnership reported net income of P9,000,000.00. Their profit or loss distribution and drawing agreement are presented below: a) 20% interest on beginning capital; b) P30,000.00, P60,000.000 and P150,000.00 monthly salary, respectively; c) 25% bonus to the managing partner of net income after interest and salary; d) The remainder will be divided equally among partners; e) The partners must withdraw at the end of the year 50% of their share in net income for the period. What is the capital balance of C on December 31, 2020?
a. P4,230,000.00
b. P4,510,000.00
c. P7,610,000.00
d. P3,410,000.00
Q7. The ABC Partnership has the following amounts: Sales - P84,000.00; Cost of Goods Sold - P48,000.00; Operating Expense - P12,000.00; Salary Allocations to Partners - P15,600.00; Interest paid to Banks - P2,400.00; Partner's Withdrawals - P9,600.00; Compute the partnership net income(loss):
a. P24,000.00
b. P21,600.00
c. P6,000.00
d. P(3,600.00)
Q8. H and I share profits and losses 1/3 and 2/3 respectively. H receives a monthly salary of P15,000.00. If H's capital balance is P250,000.00 at the beginning of the year and P150,000.00 at the end of the year, and annual partnership income after salary is P120,000.00. What was the amount withdrawn by H?
a. P130,000.00
b. P100,000.00
c. P320,000.00
d. P180,000.00
Q9. A, B, and C are partners with average capital balances during 2020 of P427,500.00; P238,650.00; and P162,350.00, respectively. The partners receive 10% interest on their average capital balances after deducting salaries of P122,325.00 to A and P82,625 to C, the residual profit or loss is equally divided. In 2020, the partnership had net loss of P125, 624 before the interest and salaries to partners. What amount should A and C account change?
a. P40,844.00 decrease; P31,237.00 decrease
b. P28,358.00 increase; P32,458.00 increase
c. P29,476.00 increase; P17,536.00 increase
d. P30,267.00 decrease; P40,844.00 decrease