Reference no: EM132846743

Questions -

Q1. The capital accounts of the partnership of Nunu, JYP, and Red on June 1, 2020 and are presented below with their respective profit and loss ratios:

Nunu P139,200 1/2

JYP P208,800 1/3

Red 96,000 1/6

On June 1, 2020, Cheer is admitted to the partnership when he purchased, for P132,000, a proportionate interest from Nunu and JYP in the net assets and profits of the partnership. As a result of a transaction, Cheer acquired a one-fifth interest in the net assets and profits of the firm. What is the combined gain realized by Nunu and JYP upon the sale of a portion of their interest in the partnership to Cheer?

A) P62,400

B) P43,200

C) P0

D) P82,000

Q2. SUHO Partnership had a net income of P8,000,000 for the month ended September 30, 2020. SEO purchased an interest in the SUHO Partnership of LIN and DO by paying LIN P32,000 for half of her capital and half of her 50% percent profit sharing interest on October 1, 2020. At this time, LIN capital balance was P24,000 and DO capital balance was P56,000. LIN should receive a debit to her capital account of:

A) P20,000

B) P16,000

C) P26,667

D) P12,000

Q3. Partners ARI, EU and KO sharing profit and loss based on 4:3:2 ratio have the following condensed statement of financial position:

Total assets P1,880,000

Liabilities P480,000

ARI, capital 620,000

EU, capital 400,000

KO, capital 380,000

Total liabilities and capital P1,880,000

DOO will be admitted as a new partner for 20% interest after he pays the three partners with a minimum of 10%. Thus, the old partner will have to transfer to DOO 20% of their interest.

A) P280,000

B) P350,000

C) P376,000

D) P200,000