Reference no: EM133109050
Questions -
Q1. On May 1, 2019, Granger and Bane formed partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Granger contributed a parcel of land that cost P10,000.00. Bane contributed P40,000.00 cash. The land was sold for P18,000.00 on May 1, 2019, immediately after the formation of the partnership. What amount should be recorded in Grangers' capital account?
A. P18,000.00
B. P15,000.00
C. P10,000.00
D. P17,400.00
Q2. How much is the total asset of the partnership upon formation? Bruno and Chou enter into a partnership agreement in which Bruno is to have 55% interest in the partnership and 35% in the profits and losses, while Chou will have 45% interest in the partnership and 65% in the profits and losses. Bruno contributed the following (The building and the equipment have a mortgage of 50,000 and 35,000 respectively. Chou is to contribute 150,000 cash and equipment. The partners agreed that only the building mortgage will be assumed by the partnership.):
A. P1,892,143
B. P1,660,909
C. P1,632,273
D. P1,701,818
Q3. Leslie, Estes, and Gusion are partners with capital balances of P67,200, P108,000 andP38,000 respectively, sharing profits and losses in the ratio of 2:5:1. Saber is admitted as a new partner bringing with him expertise and is to invest cash for a 15% interest in the partnership considering the transfer of capital from him of P18,000 upon his admission. Upon admission of Saber, which of the following statements is false?
A. The total agreed capital of the old partners is P18,000 greater than their contributed capital.
B. The capital balance of Estes amount to P119,250.
C. Cash will be debited in the amount of P40,800.
D. The capital account of Gusion will be credited in the amount of P2,250
Q4. On June 1, 2020, Argus invited Martis to join him in his business. Martis agreed provided that Argus will adjust the accumulated depreciation of his equipment account to a certain amount, and will recognize additional accrued expenses of P40,000. After that, Martis is to invest additional pieces of equipment make his interest equal to 45%.If the capital balances of Argus before and after adjustment were 556,00 and 484,000 respectively, what is the effect in the carrying value of the equipment as a result of the admission of Martis?
A. + P 396,000.00
B. + - P32,000.00
C. + P364,000.00
D. + - P324,000.00
Q5. Terizla and Silvanna, having capital balances of P980,000 and P525,000 respectively, decided to admit Guinevere into the partnership. If Terizla and Silvanna share profit in proportion of3;1 respectively, and Silvanna's capital balance after Guinevere's investment is P589,750, how much was invested by Guinevere?
A. P588,000
B. P847,000
C. P1,174,250
D. P848,750
Q6. Popol and Kupa formed a partnership on February 10, 2019. Popol contributed cash of P150,000, while Kupa contributed inventory with a fair value of P120,000. Due to Popol's expertise in selling, Kupa agreed that Popol should have 60% of the total capital of the partnership. Popol and Kupa agreed to recognize goodwill. what is the total capital of the Popol and Kupa partnership after the goodwill is recognized?
A. P300,000
B. P450,000
C. P330,000
D. Some other correct numbers.
E. P270,000
Q7. Benedetta is a partner and has an annual salary of P24,000.00 but actually draws P3,000.00 per month. The other partner Chanz has annual salary of P35,000 and draws P2,000.00 per month. What is the total annual salary that should be used to allocate profit between the partners?
A. P60,000.00
B. P59,000.00
C. P71,000.00
D. P119,000.00
Q8. Granger, Paquito, and Beatrix formed partnership on January 2020, and contributed P150,000, P200,000.00, and P250,000.00, respectively. Their articles of co-partnership provided that the operating profit be shared among the partners as follows: salary, P24,000.00 for Granger, P18,000.00 for Paquito, and P12,000.00 for Beatrix; interest of 12% on the average capital during 2020 of the three partners; and the balance in the ratio of 2:4:4, respectively. The operating profit for the year ended December 2020 amounted to P176,000.00. Granger contributed additional capital of P30,000.00 on July 1 and made a withdrawal of P10,000.00 on October 1; Paquito contributed additional capital of P20,000.00 on August 1 and made a withdrawal of P10,000.00 on October 1; and, Beatrix made a withdrawal of P30,000.00 on November 1. The partners' capital balances on December 31, 2020 are
A. P179,680.00, P229,360.00, P239,360.00, respectively.
B. P179,760.00, P229,520.00, P239,520.00, respectively.
C. P189,680.00, P239,360.00, P269,360.00, respectively.
D. P223,180.00, P272,060.00, P280,000.00, respectively.
Q9. The partnership agreement of Carmilla, Nana, and Uranus provided the following terms on distribution of profits and losses: Carmilla is to receive 10% of the profit up to P1,000,000.00 and 20% on the amount of excess; Nana and Uranus, are to receive 5% of the remaining profit in excess of P1,500,000.00 after Carmilla's share as per above; the balance to be divided equally. For the year just ended, the partnership realized a profit of P2,500,000.00 before distribution to partners. The share of Carmilla is
A. P1,300,000.00
B. P1,080,000.00.
C. P1,100,000.00
D. P1,000,000.00.
Q10. The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of P30,000, plus a bonus of 20 percent of income after deduction of the bonus and the salary allowance. If income is P150,000, the bonus should be:
A. P20,000
B. P30,000
C. P24,000
D. P18,000
Q11. Pharsa, Yu Zhong, and Minsi formed a partnership on January 1, 2020 with the following initial investments: Pharsa, P100,000.00; YZ, P150,000.00; and Minsi, P225,000.00. The partnership agreement states that profits and losses are to be shared equally by the partners after consideration is made or the following: Salaries allowed to partners of P60,000.00 for Pharsa, P48,000.00 for YZ, and P36,000.00 Minsi; Average capital balances during the year shall be allowed 10% interest. On June 30, 2020, Pharsa invested an additional P60,000.00. Minsi withdrew P70,000.00 from the partnership on September 30, 2020. Share on the remaining partnership profits was P5,000.00 for each partner.
A. P480,000.00
B. P405,000.00
C. P671,500.00
D. P672,750.00