Practical Accounting 2 Test Bank

PRACTICAL ACCOUNTING 2 TEST BANK   1.

Jinky is trying to decide whether to accept a bonus of 25% of net income aer salaries and bonus or a salary of P9!5"" plus a bonus of 1"% of net income aer salaries and bonus as a means of alloca#ng pro$t among the partners. alaries traceable to the other partners are es#mated to be P&5"!""". 'hat amount of income would be necessary so that Jinky would consider the choices to be e(ual) a. P1!1""!""" b. P1!19!5"" c. P*5"!"" d. P1!2*2!5""

2.

Jamby Jamby and +inam ,ust ,ust forme formed d a partne partners rship hip.. Jamby Jamby contri contribut buted ed cash cash of P2!2"5! P2!2"5!""" """ and o-ce o-ce e(uipment that cost P9&5!""". he e(uipment had been used in her sole proprietorship and had been "% depreciated! the appraised /alue of the e(uipment is P*0"!""". Jamby also contributed a note payable of P21"!""" to be assumed by the partnership. Jamby is to ha/e *"% interest in the partnership. +iriam contributed only P1!55!""" merchandise in/entory at fair market /alue. ssume the use of  bonus bonus method method!! the partne partners rs capit capital al must must be in confo conformi rmity ty with with their their pro$t pro$t and loss ra#o ra#o upon upon forma#on.

a. b. c. d. 0.

3n the forma#on of a partnership! which of the following is true) he agreed capital of Jamby upon forma#on is P2!*25!""" he total agreed capital of the partnership is P&!05!""" he capital of +iriam will increase by P1"5!""" as a result of the transfer of capital here is either an in/estment in/estment or withdrawal of asset under t he bonus method 4atanes onstruc#on ompany recogni6ed gross loss of P&2!""" on its long7term pro,ect which has accumu accumula lated ted costs costs of P&9"!" P&9"!""". "". o $nish $nish the pro,e pro,ect! ct! the compan company y es#mat es#mates es that that it has to incur incur addi#onal cost of P05!""". he contract price is8 a. P9!""" b. P1!00"!""" c. P1!225!""" d. P1!10!"""