Junior Philippine Philippine Institute Institute of Accountants Accountants Baliwag Polytechnic College Baliwag, Bulacan Mock Exam Part 1 ame !
"ection!
Partnership #ormation Read and analyze the questions carefully. carefully. "trictly no erasure. Encircle your answer. You are given 1.5 hour to nish the exam. 1 point p oint each answer. !5 points"
1. #n $pril %&' !&1!' !&1!' $ye' $ye' (ee and and )ee formed formed a partnership partnership *y com*ining com*ining their separate separate *usiness proprietorships. $ye contri*uted cash of +5'&&&. (ee contri*uted property with a 5,'&&& carrying amount' a -&'&&& original cost and 1!&'&&& fair value.the partnership accepted responsi*ility for the mortgage paya*le of 5!'5&& attached to the property. property. )ee contri*uted equipment with a carrying amount of ,5'&&&' 11!'5&& cost and !'5&& fair value. /heir prot and losses are to *e shared equally *ut silent regarding capital contri*utions. 0hich partner has the largest capital *alance $pril %&' !&1! $. $ye ). )ee (. (ee 2. $ll capital capital account account *alances *alances are equal !. #n 2ecem*er 2ecem*er 1' !&1! ' 3alou and 3att 3att formed a partnership' partnership' agreeing agreeing to share share for prots prots and losses in the ratio !4% respectively. respectively. 3alou invested a parcel of land that cost him !5'&&&. 3att invested %&'&&& cash. /he land was sold for 5&'&&& on the same date three hours after formation of the partnership. ow much should *e the capital *alance of malou right after the formation $. !5'&&& ). -&'&&& (. %&'& %&'&&& && 2. 5&'& 5&'&&& && %. #n march march 1' !&1! 6atniss 6atniss and and 7ucas formed formed a partnership partnership with each each contri*uting contri*uting the following assets4 6atniss 7ucas )ash %&&'&&& +&&'&&& 3achinery !5&'&&& !5 +5&'&&& (uilding 8 !!5&'&&& 9 and 9 1&&'&&& 8 /he *uilding is su*:ect o a mortgage loan of &&'&&& which is to *e assumed *y the partnership. /heir ; < 7 ratio is %&= and +&=. #n march 1' !&1! the *alance in 7ucas>s capital account should *e $. %+ %+&&'&&& (. %1 %1,&'&&&
). %&5&'&&& 2.!?&&'&&&
,. #n 3arch 3arch 1' !&1!' )hesca )hesca and and @a*ee decide decide to com*ine com*ine their *usinesses *usinesses and form form a partnership. /heir *alance sheets on march 1' *efore ad:ustments' showed the following4 )hesca @a*ee )ash $R Anventories 9 and 9' net #Bce equip>t' net ;repaid expenses /otal /otal $ccounts paya*le
?'&&& 1'5&& %&'&&& %&'&&& 11'5&& -'%+5 1&5'%+5 ,5'+5&
%'+5& 1%'5&& 1?'5&& ?'&&& !'+5& %'&&& 51'5&& 1'&&&
)apital 5?'-!5 /otal 1&5'%+5 51'5&& /hey agreed to have the C. items recorded in their *ooDs4
%%'5&&
1. ;rovide != allowance for dou*tful accounts. !. )hesca>s 9 and f should *e %1'&&& ' while @a*ee>s #Bce Equip>t is under depreciated *y !5&. %. Rent expense incurred previously *y )hesca was not yet recorded amounting to 1'&&& while salary expense incurred *y @a*ee was not also recorded amounting to &&. ,. /he fair marDet value of inventory amounted to4 )hesca !?'5&& @a*ee !1'&&& )ompute the net de*it" credit ad:ustment for )hesca and @a*ee4 $. -1'?5& ). -5'55& (. -%'+5& 2. -%'?5& 5. /he same info in no. , ' compute the total lia*ilities after formation4 $. 15+'?5 ). 1-&'+-5 (.15-'+5 2.15!'?5 )hicDen *a 0ell' let>s try it without choices. -. #n 2ecem*er 1' !&1%' )arla and )lara :oined a partnership. )arla contri*uted cash while )lara contri*uted merchandise worth !5'&&& and a second hand delivery trucD currently valued at 5&'&&&' *ut encum*ered *y one year chattel mortgage note for 15'&&&. Af initial capital *alances are to conform to the prot sharing ratio !4%' the amount of cash contri*uted *y )arla was Required4 a. /he capital *alance of )lara on 2ecem*er 1' !&1%. *. /he amount of cash contri*uted *y )arla. c. /he total partnership assets on 2ecem*er 1' !&1%. +. 3arie admits Fella as a partner in *usiness. Gust *efore the partnership>s formation' 3arie>s *ooDs showed the C4 )ash !'-&& $R 1!'&&& 3. inventory 1'&&& $ccounts paya*le -'!&& 3arie' )apital !-',&& At was agreed that' for purposes of esta*lishing 3arie>s investment in the rm' the C ad:ustments shall *e reHected4 $llowance for *ad de*ts of != should set up. 3. inventory should *e valued !&'!&& ;repaid expenses of %5& and accrued expenses of ,&& should *e recognized. Required4 a. /he ad:usted capital of 3arie. *. Anvestment of Fella to secure 1I% interest in the partnership. c. /otal lia*ilities of the partnership. • • •
. /aylor and @aga formed a partnership. /aylor contri*uted 5&'&&& cash. @aga contri*uted land and *uilding he purchased for 5&'&&& some time ago. is tax *asis in the property is now %&'&&& although it was recently appraised for +&'&&&. /here is a mortgage
paya*le attached to the *uilding that the partnership will assume. 0hat is the amount of @aga>s capital account after his contri*ution
?. @eorgina and Jolenn formed a partnership with each contri*uting the C assets4 @eorgina Jolenn )ash %&'&&& +&'&&& 3achine !5'&&& +5'&&& (uilding 8888 !!5'&&& 9 and 9 1&'&&& 8888 /he *uilding is su*:ect to mortgage paya*le of &'&&& which will not assumed *y the partnership. /heir ; and 7 ratio is 5&45&. /he *alance on Jolenn capital account should *e 1&. the same info in no. ? if the partnership assumed the mortgage paya*le the *alance of @eorgina>s capital account should *e
Partnership $perations 1. ;a*e*e and ;a*ae*ae are partners who share prots and losses in the ratio of -&=K ,&=. ;a*e*e salary is -&'&&& and %&'&&& for ;a*ae*ae. /he partners are also paid on their average capital *alances of %&'&&& and 1!'&&&. /he prot and loss allocation is determined after deductions for the salary and interest payments. Af ;a*ae*ae share in the residual income income after salaries and interest" was -&'&&& in !&1!' what was the partnership income a. 1?!'&&& *. %,5'&&& c. !!'&&& d. %+'&&& !. /he partnership has the C accounting amounts4 Jales L +&'&&& )ogsL ,&'&&& #perating ExpL 1&'&&& Jalary allocations to partnersL1% '&&& Anterest paid to *anDs L !'&&& ;artner>s withdrawalL '&&& /he partnership net income loss" is4 a. !&'&&& *. 1'&&& c. 5&&& d. %&&&" %. /he partnership agreement of M'Y' and N provides for the year8end allocation of net income in the following order4 9irst' M is to receive 1&= of net income up to !&&'&&& and !&= over !&&'&&&. Y and N each are to receive 5= of the remaining income over %&&'&&&. /he *alance of income is to *e allocated equally mong the three partners. • • •
/he partnership>s !&11 net income was 5&&'&&& *efore allocations to partners. 0hat amount should *e allocated to M a. !&!'&&& *. !1-'&&& c. !&-'&&&
d. !!&'&&&
,. (a' (e and (i are partners with average capital *alances during !&1! of %-&'&&&' 1&'&&& and 1!&'&&&. ;artners receive 1&= interest on their average capital *alances. $fter deducting salaries of ?&'&&& to (a' and -&'&&& to (i the residual ;<7 is divided equally. An !&1! the partnership sustained a ??'&&& loss *efore interest and salaries to partners. (y what amount should (a>s capital accounts change a. !1'&&& increase *. %%'&&& decrease c. 1&5'&&& decrease d. 1!-'&&& increase 5. #n Ganuary 1' !&1! ' 2 and E decided to form a partnership. $t the end of the year' the partnership made a net income of 1!&'&&&. /he capital accounts of the partnership show the transactions. 2' capital E' capital Gan.1 $pril1 Gune 1 $ug1. Jept1 #ct1 2ec1
,&'&&& 5'&&&" 888 1&'&&& 888 5'&&& ,'&&&
!5'&&& 888 1&'&&& 888 %&&&" 1'&&&" 5'&&&
$ssuming that an interest of !&= per annum is given on average capital and the *alance of the prots is allocated equally' the allocation of prots should *e4 a. 2 -&'&&&K E 5?',&& *. 2 -1'!&&K E 5'&& c. 2 -+!&&K E 5!'&& d. 2 -'&& K E 51'!&& -. 6at' Ri' Fa are partners with average capital *alances during !&&+ of ?,5'&&& ' ,++'%&& and %!,'+&&. /he partners receive 1&= interest on their average *alances' salaries of !--'&&&to Ri and 1??'&& to 6at' any residual prot is divided in the raio of 1&4%&4,& Ri' 6at < Fa. Af the partnership had a net loss of !-?'&&&' the share of Fa and 6at in the prot is +. Af the partnership had a prot of 1&!'&&&' the share of Ri and 6at is
. 9ernan'(ernard' Ramil < 0enzcarlo are partners. /heir capital accounts during the year !&1! were s follows4 )apital' 9ernan ?I1 1!&'&&&
1I+ &&'&&& ,I1, 1-&'&&& 11I1 -&'&&&
)apital' 0enzcarlo
)apital' Ramil %I% 1&'&&&
1I+ 1!&&'&&& +I% 1,&'&&& ?I! 1&&'&&&
)apital' (ernard
O
11I! +5'&&& 1!I5 1&'&&&
1I+ -&&'&&& -I1! !1&'&&& 1!I!& %,&'&&&
5I1- !&&'&&& 1I+ 15&&'&&& 1!I1! 55&'&&& !I!1 -&'&&& +I%1 1,&'&&&
$ssumption 1. Anterest at ?= is to *e allowed on the *eginning capital of each partner. Jalaries of 1,5'&&&K 11&'&&&K1+&'&&&K1-5'&&& to fernan' wenzcarlo'(ernard and ramil. Residual income is to *e divided in the ratio if !4%414, to (ernard' wenzcarlo' fernan' ramil. ;rot for the year is 11,&'&&&. /otal share of wenzcarlo in the prot is ?. /otal share of (ernard and Ramil in the prot are PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1&.Ending *alance of (ernard
PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
11.Jhare of 9ernan in the remaining income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1!./otal capital of 0enzcarlo and fernan after allocation of prot PPPPPPPPPPPPPPPPPPPPPPPPPP $ssumption !. Anterest at 1!= is to *e allowed on the *eginning capital of each partner. Jalaries of 115'&&& and !&&'&&& to fernan and wenzcarlo respectively. (onus of 15= and !&= after interest and salaries to Ramil and (ernard. Residual incomeloss" is to *e divided equally among the partners. Fet loss for the year is 1,5&'&&&. 1%.(onus receive *y Ramil is PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,./otal share of (ernard in the loss PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 15./otal capital *alance of 9ernan and Ramil after allocation PPPPPPPPPPPPPPPPPPPP
You cannot cross the ocean unless you>re not afraid to lose sight of the shore. ;repared *y4 $izelle )hesca /im*ang 8 Q;F$
Junior Philippine Institute of Accountants Baliwag Polytechnic College Baliwag, Bulacan Basic Accounting %efresher Part 1 Fame4
Jection4
Read carefully and answer *y heart. 0rite the correct answer i n the space provided. &'1 I(entify the accounting term that is )est (escri)e( )y the following sentences*
1. /he *usiness is regarded as having a separate and distinct personality from its owner. !. Resources or things owned *y a *usiness. %. $ccountants generally choose a method or procedure that will yield a lower amount of income and asset value. ,. /his principle states that the acquired asset should *e recorded at their actual or historical value. 5. /he concept requiring that at least two accounts are aCected *y each *usiness transaction. -. /he standard *asic accounting equation. +. 9inancial reporting is concerned only with information that is signicant enough to aCect valuations and decisions. . nder this concept' money is used as the unit of measure in preparing the various nancial reports of the company. ?. $ de*t that is secured *y a collateral in the form of *usiness property such as land' *uildings and equipment. 1&./he report that shows the worth of a *usiness in terms of assets' de*ts and the investment of the owner. &'+
&%E #R #A-"E*
1. $ccounting is often descri*ed as the Slanguage of *usinessT *ecause it is the medium of communication *etween a *usiness rm and other parties. !. 9riar 7uca ;acioli was the author of the rst Dnown *ooD of dou*le entry *ooDDeeping' %. $ccounting deals primarily with the step *y step accomplishments of the accounting cycle. ,. Anternal nancial statement users are those who are directly involved in the *usiness organization.
5. $ccounting provides a vital source in supplying information to decision maDers who will maDe decisions for the conduct of *usiness and its various economic activities. -. $ manufacturing *usiness is engaged in the processing of products that are intended for sale. +. /he 9RJ) is the *ody that formulates the accounting standards in the ;hilippines. . /he three elements that report the nancial status of an entity are assets' lia*ilities and income. ?. /he relationship among assets' lia*ilities and equity is expressed *y the accounting equation4 assetsL lia*ilities U equity 1&.$ny two elements of the *asic accounting equation may *e rearranged alge*raically to determine the peso amount of the missing element.
&'.
Arrange the following steps in the accounting cycle*
J/E; V PPPPPPP/rial *alance preparation. PPPPPPP;reparation of 1& column worDsheet. PPPPPPP;osting :ournal entries to the ledger. PPPPPPPGournalizing and posting ad:usting entries. PPPPPPP;reparing nancial statements. PPPPPPP(alancing the accounts and preparing a post closing trial *alance' PPPPPPP$nalyzing the source documents. PPPPPPPGournalizing and posting reversing entries. PPPPPPPGournalizing and posting closing entries. PPPPPPPGournalizing transactions.
Every accomplishment starts with a decision to try. ;repared *y4 $izelle )hesca /im*ang 8 Q;F$
$perations8 $nswer Dey
1,.%,'!5&" 15.1%-'5&&
1. ). !. (. %. (. ,. $. 5. (. -. ,!!'!&"K ,-'+-!.5&" +. !,-',1+.5&K ?!'%-!.5& . !1'%&& ?. --'-&& 1&.1!?1'!&& 11.1'1&& 1!.!%!&',&& 1%.&
#ormation W $nswer 6ey 1. ). !. 2. %. 2. ,. ). 5. $. -. $. -&'&&& (. ,&'&&& ). 115'&&& +. $. !'%1& (. 1,'155 ). -'-&& . 55'&&& ?. %+&'&&& 1&.-5'&&&
Basic Accounting &heories
$nswers! &'+ $nswers4 &'1
1. /
$nswers4 &'.
1. (usiness entity
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!. %. ,. 5.
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5
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%
5./
+
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-
+.9
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$ssets )onservatism )ost principle 2ou*le entry *ooDDeeping -. $L7U#E +. 3ateriality . 3onetary unit ?. 3ortgage paya*le 1&.(alance sheet
!
Junior Philippine Institute of Accountants Baliwag Polytechnic College Baliwag, Bulacan A/E %e0iewer o* 1
Multiple Choice - Theories (Encircle the correct answer) 1. /he legal characteristic of a partnership where*y each partner is an agent of the partnership and is a*le to *ind the partnership to contracts within the normal scope of the partnership *usiness is Dnown as4 a. unlimited lia*ility *. mutual contri*ution
c. co8ownership d. mutual agency
!. /he dissolution of a *usiness partnership *y 1" selling noncash assets for cash and allocating the gain or loss according to partnersX income8and8loss ratio !" paying lia*ilities %" distri*uting remaining cash to partners *ased on capital *alances is called partnership . a. Realization *. 7iquidation
c. 9ormation d. Ancorporation
%. 0hich of the following statements is correct a. Jalaries to partners and interest on partnersX capital are expenses of the partnership. *. Jalaries to partners are expenses of the partnership *ut interest on partnersX capital is not. c. Anterest on partnersX capital is an expense of the partnership *ut salaries are not. d. Feither salaries to partners nor interest on partnersX capital are expenses of the partnership. ,. /he admission of a partner *y purchase of an existing partnerXs interest in the rm4 a. increases total partnership assets. *. increases total partnership capital. c. is a personal transaction *etween an existing partner and the new partner d. can result in a *onus to the other partners. 5. /he admission of a partner *y an investment of assets in a partnership4 a. will not aCect the net assets of the partnership. *. increases total partnership capital. c. is a personal transaction *etween an existing partner and the new partner. d. does not require an entry in the partnership records. -. 0hen a new partnerXs capital credit is less than hisIher investment in the rm' the diCerence is allocated to the old partners4 a. equally. *. on the *asis of their income ratios. .
c. on the *asis of their original investments. d. in proportion to their capital *alances
+. /he *onus that results when a new partnerXs capital credit is greater than hisIher investment in the rm is recorded *y de*iting4 a. *onus expense. *. the existing partnersX capital accounts. c. the existing partnersX drawing accounts. d. the new partnerXs capital account. . /he rst step in the liquidation of a partnership is to4 a. allocate gainIloss on realization to the partners. *. distri*ute remaining cash to partners. c. pay partnership lia*ilities. d. sell noncash assets and recognize a gain or loss on realization.
?. 0hen a partnership is liquidated' the remaining cash should *e distri*uted to partners4 a. equally.. *. on the *asis of their income8sharing ratios. c. on the *asis of their capital *alances d. on the *asis of their original investments. 1&. Af a partner with a capital deciency is una*le to pay the amount owed to the partnership' the deciency is allocated to the partners with credit *alances4 a. equally. *. on the *asis of their income ratios. c. on the *asis of their capital *alances d. on the *asis of their original investments. II*
I(enti2cation 34rite your answers on the space pro0i(e(5 316 pts5
PPPPPPPPPPPPPP1. #ne who does not taDe active part in the *usiness of the partnership though may *e Dnown as a partner. PPPPPPPPPPPPPP!. At is the amount of capital or equity transferred *y one partner to another partner. PPPPPPPPPPPPPP%. At is the total capital of the partnership after considering the capital credits given to each of the partners. PPPPPPPPPPPPPP,. At represents the portion of a partner>s interest which should remain availa*le to a*sor* possi*le future losses. PPPPPPPPPPPPPP5. /his program is prepared at the start of the liquidation process which will help the partners to pro:ect when they can expect to *e included in the cash distri*ution. PPPPPPPPPPPPPP-. /he conversion of non8cash assets into cash. PPPPPPPPPPPPPP+. /he excess of a partner>s share in losses over the partner>s capital credit *alance. PPPPPPPPPPPPPP. #ne who does not taDe active part in the *usiness of the partnership and is not Dnown as a partner. PPPPPPPPPPPPPP?. #ne who is actually not a partner *ut who represents himself as one. PPPPPPPPPPPPPP1&. $ partnership that has complied with all the legal requirements for its esta*lishment.
II* "traight Pro)lem 7 "how your solution in a separate worksheet 316 pts5 /he condensed *alance sheet of R)$ ;artnership :ust *efore the liquidation is shown *elow4
;oDemon ;artnership Jtatement of 9inancial ;osition 2ecem*er %1' !&1% $ssets )ash
7ia*ilities and )apital ; ,'&&&
$ccounts paya*le
; +,'&&&
#ther $ssets
!--'&&&
3eow' 7oan
-'&&&
Qictini' 7oan
1&'&&&
;iDachu' )apital
/otal $ssets
; %5&'&&&
1!&'&&&
3eow' )apital
5&'&&&
Qictini' )apital
?&'&&&
/otal 7ia*ilities and )apital
; %5&'&&&
/he partners shared prot and loss in the ratio of ,4,4!' respectively. /he other assets were sold for ; 11&'&&&. /he partner with capital deciency is insolvent. Required4 1. !.
I8*
;repare a statement of liquidation. ;repare :ournal entries to record the liquidation process.
Multiple Choice ' Pro)lems 3Encircle the correct answer' show your solution in a separate worksheet5
1.
#n 3arch 1' !&1%' ;; and decide to com*ine their *usiness and form a partnership. /heir *alance sheets on 3arch 1' *efore ad:ustments' showed the following4
/hey agreed to have the following items recorded in their *ooDs4 1. !. %. ,.
;rovide != allowance for dou*tful accounts. ;;>s furniture and xtures should *e ;%1'&&&' while >s oBce equipment is under8depreciated *y ;!5&. Rent Expense incurred previously *y ;; was not yet recorded amounting to ;1'&&&' while salary expense incurred *y was not also recorded amounting to ;&&. /he fair marDet value of inventory amounted to4 9or ;;ZZZZZZZZZZZZZZZZZZZ..;!?'5&& 9or ZZZZZZZZZZZZZZZZZZZ.;!1'&&&
)ompute for the net de*it" credit ad:ustment for ;; and 4 ;; a" !'+& !'!& *" !'+&" !'!&" c" +&" 1& d" +& 1&" !.
/he same information in num*er 1' compute the total lia*ilities after formation. a" *" c" d"
%.
-1'?5& -%'+5& -5'55& -%'?5&
/he same information in num*er 1' compute for the total assets after formation. a" *" c"
15+'?5 15-'+5 1-&'+-5
d" ,.
15!'?5
Yaya 2u* and $lden are considering forming a partnership where*y prots will *e allocated through the use of salaries and *onuses. (onuses will *e 1& = of net income after total salaries and *onuses. Yaya 2u* will receive a salary of ;%&'&&& and a *onus. $lden has the option of receiving a salary of ;,&'&&& and a 1&= *onus or simply receiving salary of ;5!'&&&. (oth partners will receive the same amount of *onus. 2etermine the level of net income that would *e necessary so that $lden would *e indiCerent to the prot sharing option selected.
5.
-.
+.
.
?.
1&.
a" !,&'&&& c" ?,'&&& *" %&&'&&& d" %%,'&&& e" /he partnership agreement of $nne and Qhong provides that interest at 1&= per year is to *e credited to each partner on the *asis of weighted8average capital *alances. $ summary of Qhong capital for the year ended 2ecem*er %1' !&1% is as follows4 f" (alance' Ganuary 1ZZZZZZZZZZZZZZZZ; ,!&'&&& g" $dditional investment' Guly 1ZZZZZZZZZZZZ 1!&'&&& h" 0ithdrawal' $ugust 1ZZZZZZZZZZZZZZZ. ,5'&&&" i" (alance' 2ecem*er %1ZZZZZZZZZZZZZZ.. ,?5'&&& :" 0hat amount of interest should *e credited to Qhong>s capital account for !&1% D" a" ,5'+,& *" ,?'5&& c" ,-'1!5 d" 51'+5& Fidora' /idora and Asadora are partners with average capital *alances during !&1%of ;,+!'5&&' ;!%'-5& and ;1-!'%5&' respectively. /he partners receive 1&= interest on their average capital *alancesK after deducting salaries of ;1!!'%!5 to Fidora and ;!'-!5 to Asadora' the residual prots or loss is divided equally. An !&1%' the partnership had a net loss of ;1!5'-!, *efore the interest and salaries to partners. l" m" (y what amount should Fidora>s and Asadora>s capital account change W increase Idecrease" n" $$ )) a" %&'!-+ ,&',," *" !?',+1+'5%c" ,&',," %1'!%5 d" !'%5 %!',5 o" p" /he same information in num*er -' except the partnership had a loss of ;1!5'-!, after the interest and salaries to partners' *y what amount should /idora>s capital account change W increase I decrease". q" a" 115',,%" *" !%'-5 c" ,1'+5" d" 1'&1&" r" #n Gune %&' !&1%'the *alance sheet of 9airy /ail 3arDeting' a partnership' is summarized as follows4 s" Jundry $ssetsZZZZZ.; 15&'&&& t" Fatsu' )apitalZZZZZZ ?&'&&& u" 7ucy' )apitalZZZZZZ -&'&&& v" Fatsu and 7ucy share prot and losses at a -&4,& ratio' respectively. /hey agreed to taDe in @ray as a new partner' who purchases 1I interest of Fatsu and 7ucy for ;!5'&&&. 0hat is the amount of @ray>s capital to *e taDen up in the partnership *ooDs if *ooD value method is used w" a" 1!'5&& *" 1'+5& c" !5'&&& d" %1'!5& x" 2aimler contri*uted ; !,'&&& and Ro*in contri*uted ;,'&&& to form partnership' and they agreed to share prots in the ratio of their original capital contri*utions. 2uring the rst year of operations' they made a prot of ; 1-'!?&K 2aimler withdrew ;5'&5& and Ro*in ;'&&&. $t the start of the following year' they agreed to admit 3ichael into the partnership. e was to receive a one8fourth interest in the capital and prots upon payment of ;%&'&&& to 2aimler and Ro*in' whose capital accounts were to *e reduced *y transfers to 3ichael>s capital account. y" ow much gain was realized *y 2aimler and Ro*in z" a." 11'1?& *." 1!'1?& c." 1&'1?& d." & aa" /he 2ecem*er %1'!&1%' *alance sheet of ((' ))' and 22 partnership is summarized as follows4
11.
1!.
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a*" ac" /he partner>s share prots and losses as follows 4 ((' !&=K ))' %&=K 22' 5&=' )) is retiring from the partnership and the partners have agreed that Sother assetsT should *e ad:usted to their fair values of ;-&&'&&& at 2ecem*er %1'!&1%' they further agree that )) will receive ;!,,'&&& cash for his partnership interest exclusive of the loan' which is to *e paid in full' and that no goodwill implied *y ))>s payment will *e recorded. ad" ow much *onus did )) received ae" a." & *." 1!'&&& c." 1,'&&& d." 1-'&&& af" $fter ))>s retirement ' the capital *alances of (( and 22' respectively' will *e4 ag" a." 11-'&&& and !,&'&&& *." 1&1'+1, and !5,'!c." 1&&'&&& and !&&'&&& d." +%'1,% and 1!'5+ ah" ai" 2uterte' 3iriam and 3ar' partners to a rm ' have capital *alances of ;11'!&&' ;1%'&&&' and ;5'&&' respectively' and share prots in the ratio of ,4!41. ;repare a schedule showing how availa*le cash will *e given to the partners as it *ecomes availa*le. 0ho among the partners shall *e paid rst with an availa*le cash of ;1',&& a:" a." 3iriam c." 3ar *." Fo one d." 2uterte e." $s of 2ecem*er %1' !&&' the *ooDs of Fight Raid $ssassin ;artnership showed )apital *alances of4 /atsumi ;,&'&&&K $Dame' ;!5'&&&K 3ine' ;5'&&&. /he partners> prot and loss ratio was %4!41' respectively. /he partners decided to liquidate and they sold all non8cash assets for ;%+'&&&. $fter settlement of all lia*ilities amounting to ;1!'&&&' they still have cash of ;!'&&& left for distri*ution. $ssuming that any capital deciency is uncollecti*le' the share of /atsumi in the distri*ution of the ;!'&&& cash would *e4 f." a." 1+'&& *." 1'&&& c." 1?'&&& d." 1+'&&& g." /he *alance sheet of the partnership of ;recious' Ganet and 3ichelle who share prot and losses in the respective ratio of 54%4!' follows4
h." i." /he partners agreed to liquidate the partnership *y installments. Ammediately' there was a realization of ;1&&'&&& cash from selling other assets with *ooDs value of ;15&'&&&. #f the cash availa*le' the priority is the payment of the lia*ilities and the *alance is to *e distri*uted to the partners. :." ow should the remaining cash *e distri*uted to ;recious' Ganet and 3ichelle' respectively D." a." ;5&'&&&K %&'&&& and !&'&&& *." ;,&'&&&K !,'&&& and 1-'&&& c." ;8&8K %1'&&& and ,?'&&& d." ;8&8K ,'&&& and %!'&&& l." 15. sing the same information in num*er 1,' how much cash should 3ichelle receive assuming the remaining assets were sold for ;1,&'&&& m." a." & *." 5&'&&& c." -&'&&& d." ,&'&&& n."
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q." PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPP r." @ood lucD sa *attery test niyo. Jome pro*lems are really long and complicated so when you encounter things liDe that' taDe this a piece of advice. You should sDip it rst then proceed to simpler pro*lems. Remind yourself that whether it>s easy or diBcult' it only counts as one point on your exam or *attery test except for the domino pro*lems. 2on>t waste time. 7earn to maximize it. s." t." ;.J. Jcan rst the whole test paper *efore you proceed answering pro*lems. 3alay niyo nasa dulo yung mga madadaling pro*lems di *a. uwag malungDot Dung saDali mang walang luma*as sa mga reviewer na naprovide namin. $t least napaghandaan at nasanay yung analytical sDills nyo sa i*a>t i*ang pro*lems. 6aya niyo yan. 3agpray lagi. @od *less you (J$ !$. A>ll try to provide more reviewers sa mga susunod na araw. 6apit lang. 0ag susuDo. u." v." 88888P #$% ACA9" w*5 38PA5 x." y." z." aa." a*." ac." ad." ae." af." ag." ah." ai."6ey $nswer 9or $E Reviewer Fo. 1 a:."A. 3ultiple )hoice 8 /heories aD." 1 al."d an." am." ! * ap." ao." % d ar." aq." , c at." as." 5 * av." au." * ax." aw." + * az." ay." d **." *a." ? c *d." *c." 1& * *e." AA. Adentication *f."1 *g." Jilent ;artner *h." ! *i."(onus *:."% *D." $greed )apitalI/otal $greed )apital
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)ontinuation"
