Reference no: EM132751966

Questions -

Q1. Eli, Emi and Epi divide profits and losses in a 2:3:4 ratio.Just prior to liquidating their partnership, their respective account balances were P50,000, P96,000 and P74,000 as of April 1, 20x6. Their total assets include cash of P5,000 and a loan to Eli for P10,000, while their total liabilities of P90,000 include a loan from Epi for P30,000. The partners agreed to distribute cash as it becomes available at each-month end. Realization proceeds were P68,000 in April, P56,000 in May and P63,000 in June.

In the cash distribution on May 31, 20x6, the distributive share of Emi amounted to:

a. 13,000

b. 0

c. 26,000

d. 39,000

Q2. Eli, Emi and Epi divide profits and losses in a 2:3:4 ratio.Just prior to liquidating their partnership, their respective account balances were P50,000, P96,000 and P74,000 as of April 1, 20x6. Their total assets include cash of P5,000 and a loan to Eli for P10,000, while their total liabilities of P90,000 include a loan from Epi for P30,000. The partners agreed to distribute cash as it becomes available at each-month end. Realization proceeds were P68,000 in April, P56,000 in May and P63,000 in June.

In the cash distribution on June 30, 20x6, the distributive share of Epi amounted to:

a. 28,000

b. 21,000

c. 35,000

d. 14,000

Q3. Scott, Joe and Ed are liquidating their partnership. At the date the liquidation begins, Scott, Joe and Ed have capital account balances of P162,000, P192,500 and P215,000, respectively and the partners share profits and losses 40%, 35%, and 25%, respectively. In addition, the partnership has a P36,000 Notes Payable to Scott and a P20,000 Notes Receivable from Ed.

When the liquidation begins, what is the loss absorption power with respect to Joe?

a. 192,500

b. 770,000

c. 550,000

d. 67,375

Q4. These data pertain to installment sales of MICKEY's store:

- Downpayment; 20%

- Installment sales: P545,000 in Year 1; P785,000 in Year 2; and P968,000 in Yeaar 3

- Mark up on cost : 35%

- Collections after downpayment: 40% in the year of sale, 35% in the year after, and 25% in the third year.

The realized gross profit in year 1 is:

a. 109,357

b. 114,825

c. 99,190

d. 73,474