Reference no: EM132945924

Questions -

Q1. On January 1, 2020, A, B, and C entered into Articles of Co-Partnership for the operation of ABC Laundry Shop. A contributed building with assessed value of P850,000.00 subject to mortgage payable of P150,000.00 to be paid personally by A. B contributed laundry equipment with cost of P300,000.00 with accumulated depreciation of P100,000.00. The fair market value of the laundry equipment is P150,000.00. On January 2, 2020, ABC Partnership was able to sell the building for P900,000.00. How much cash shall be contributed by C if the articles of co-partnership provide that A will have 60% interest in the partnership?

a. P600,000.00

b. P350,000.00

c. P450,000.00

d. P300,000.00

Q2. On January 1, 2020 AA and BB formed a partnership by contributing cash of 50,000.00 and P40,000.00, respectively. They have agreed to give AA 60% interest in capital and BB 40% interest in profit and losses. Since January 1, 2020, the following events have occurred for the partnership. On April 1, 2020, after charging the old partners' capital their share from a loss of P15,000.00 for the 1st quarter, CC was taken in as a partner by purchasing 20% partnership interest, proportionately from AA and BB as agreed among the partners. CC paid a total of P12,000.00 for the purchased interest and was given a 20% interest in profits. The old partners have agreed to maintain their old profit and loss ratio. How much is the capital of AA upon formation of the partnership on January 1, 2020?

a. P50,000.00

b. P54,000.00

c. P46,000.00

d. P40,000.00

Q3. 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. DD;s adjusted capital before the admission of EE:

a. P28,174.00

b. P35,347.00

c. P35,374.00

d. P36,374.00

Q4. On January 1, 2020 AA and BB formed a partnership by contributing cash of 50,000.00 and P40,000.00, respectively. They have agreed to give AA 60% interest in capital and BB 40% interest in profit and losses. Since January 1, 2020, the following events have occurred for the partnership. On April 1, 2020, after charging the old partners' capital their share from a loss of P15,000.00 for the 1st quarter, CC was taken in as a partner by purchasing 20% partnership interest, proportionately from AA and BB as agreed among the partners. CC paid a total of P12,000.00 for the purchased interest and was given a 20% interest in profits. The old partners have agreed to maintain their old profit and loss ratio. How much cash will BB receive on April 1, 2020 upon the admission of CC by purchase on interest?

a. P7,800.00

b. P9,300.00

c. P4,200.00

d. P2,700.00

Q5. Paul, Anton and Tony agree to from partnership with Paul contributing P150,000.00 for 2/3 interest in the partnership. Anton and Tony sharing equally in the remaining required capitalization. What is the total assets of the partnership upon liquidation?

a. P225,000.00

b. P675,000.00

c. P450,000.00

d. P300,000.00

Q6. On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit and loss ratio of 4:5:1, is presented as follows: Cash - P1,000,000.00 (Dr.); Advances to A - P 5,000,000.00 (Dr.); Noncash Asset - P9,000,000.00 (Dr.); Liability to Third Person - P2,000,000.00 (Cr.); Advance from B - P1,000,000.00 (Cr.); Advance from C - P2,000,000.00 (Cr.); A, Capital - P6,000,000.00 (Cr.); B, Capital - P3,000,000.00 (Cr.); C, Capital - P1,000,000.00 (Cr.); On January 1, 20201, ABC Partnership is liquidated wherein liquidation expenses amounting P400,000.00 has been incurred. If partnership B receives P1,000,000.00, what is the amount received by C at the time of liquidation?

a. P2,400,000.00

b. P1,000,000.00

c. P2,000,000.00

d. None

Q7. Rose, Susie and Tina are partners sharing profits on a 5:3:2 ratio. On January 1, 2020, Vienna was admitted into the partnership with a 20% share in profits. The old partners continue to participate in profits in their original ratios. For the year 2020, the partnership book showed a net income of P25,000.00. It was disclosed however, that the following errors were committed: a) Accrued expense in 2019 not recorded at year-end - P1,200.00; b) Inventory overstated in 2020 - P3,100.00; c) Purchases in 2020 not recorded for which goods have been received and inventories - P2,000.00; d) 2019 Income received in advance not adjusted - P1,500.00; e) Unused supplies of 2020 not taken up at year-end - P900;. The new profit and loss ratio of Rose, Susie, Tina and Vienna, respectively for 2020 is?

a. 40:25:15:20

b. 50:20:10:20

c. 45:30:15:20

d. 20:24:16:20

Q8. On December 31, 2020, the capital balance of partners C, P, and A of CPA Partnership are P1,000,000.00, P3,000,000.00 and P6,000,000.00, respectively with profit or loss agreement ratio of 4:1:5. On January 1, 2021, C decided to retire and receive P400,000.00 from the partnership. If the assets of the partnership are not properly valued at the time of retirement, how much is the capital balance of P after retirement of C?

a. P2,900,000.00

b. P2,850,000.00

c. P3,100,000.00

d. P3,150,000.00