Reference no: EM133076592
Questions -
Q1. Erlinda Mission and Randy Juelos are partners of Gensan Commercial. They shared profit and losses in the ratio of 3:2. On January 1, 2007 Dominador Dizon was admitted into the partnership with a 30% share in the profit and losses and the old partners will continue to participate in profit and losses in their original ratio. For the year 2007, the partnership realized a net income of P 450,000. It was disclosed, however, that the following errors were committed in 2007.
a) Inventory at the end was understated by P 15,000.
b) Accrued Expenses in the amount of P 5,000 was not recorded.
c) Prepaid Expenses in the amount of P 4,000 was not taken up.
What is the new profit and loss ratio of the partners?
a. 42%, 28%, 30%
b. 20%, 50%, 30%
c. 45%, 25%, 30%
d. 40%, 30%, 30%
Q2. The partnership agreement of Raymundo Munding and Ronald Mamaril provides:
a) An interest of 15% per annum for both based on their respective average capital balances;
b) Both are entitled to an annual salary of P 30,000 each,
c) Remainder will be on the ratio of 2:3.
A summary of Munding's capital account showed the following:
Jan. 1 Balance 250,000
Apr. 1 Withdrawal (30,000)
Sept. 1 Investment 70,000
Dec. 31 Balance: 290,000
Partnership showed a net income of P190,000
How much would be the share of both partners on the partnership profit based on their agreement for Munding and Mamaril respectively?
a. 85,620; 104,380
b. 84,750; 105,250
c. 83,400; 106,600
d. 86,575; 103,425
Q3. The partnership agreement of Raymundo Munding and Ronald Mamaril provides:
a) An interest of 15% per annum for both based on their respective average capital balances;
b) Both are entitled to an annual salary of P 30,000 each,
c) Remainder will be on the ratio of 2:3.
A summary of Munding's capital account showed the following:
Jan. 1 Balance 250,000
Apr. 1 Withdrawal (30,000)
Sept. 1 Investment 70,000
Dec. 31 Balance: 290,000
Partnership showed a net income of P 190,000
Assuming that the average capital of Mamaril is P 300,000, how much interest based on average capital that should be given to Munding?
a. 34,500
b. P21,750
c. 37,626
d. 45,000
Q4. The partnership agreement of Raymundo Munding and Ronald Mamaril provides:
a) An interest of 15% per annum for both based on their respective average capital balances;
b) Both are entitled to an annual salary of P 30,000 each,
c) Remainder will be on the ratio of 2:3.
A summary of Munding's capital account showed the following:
Jan. 1 Balance 250,000
Apr. 1 Withdrawal (30,000)
Sept. 1 Investment 70,000
Dec. 31 Balance: 290,000
Partnership showed a net income of P 190,000
How much would be the average capital of Munding?
a. 230,333
b. P145,000
c. 260,525
d. 250,833
Q5. Erlinda Mission and Randy Juelos are partners of Gensan Commercial. They shared profit and losses in the ratio of 3:2. On January 1, 2007 Dominador Dizon was admitted into the partnership with a 30% share in the profit and losses and the old partners will continue to participate in profit and losses in their original ratio. For the year 2007, the partnership realized a net income of P 450,000. It was disclosed, however, that the following errors were committed in 2007.
a) Inventory at the end was understated by P 15,000.
b) Accrued Expenses in the amount of P 5,000 was not recorded.
c) Prepaid Expenses in the amount of P 4,000 was not taken up.
How much is the partners' respective share in the net profit for Mission, Juelos and Dizon?
a. 92,800; 232,000; 139,200
b. P 85,200; P 213,000; P 127,800
c. 194,880; 129,920; 139,200
d. 195,720; 130,480; 139,800