Professional Documents
Culture Documents
FA P2 (Midterm) - 1st Quiz (C)
FA P2 (Midterm) - 1st Quiz (C)
FA P2 (Midterm) - 1st Quiz (C)
Fundamentals of Accounting P2
(ABM 4)
Quiz # 1
A. Copy and Cat both owners of an existing single proprietorship business. They agreed to combine their business into a
partnership named CopyCat Partnership. They agreed to start with a total capitalization of P 400,000.00 to be
contributed equally. They also agreed to the following valuation of their businesses noncash assets.
a. Their receivables are 95% collectibles.
b. The inventory has realizable value of P75,000.00
c. The equipment has fair value of P75,000.00
They will invest additional cash if needed to complete their agreed contribution. The trial balance of the single proprietorship
business is as follows:
B. Using the following data, computes for the amount of profits distributed for each partner of Think Ahead Partnership.
Profits for the year 2019 amounted to P 150,000.00. Show your solution.
MR. THINK MS. AHEAD
Original Capital Contributions (2018) 60,000.00 88,000.00
Capital Balances
Capital Balance, January 1, 2019 45,000.00 65,000.00
Addt’l Investment, March 30 18,000.00
Addt’l Investment, May 28 14,000.00
Addt’l Investment, June 28 16,000.00
Withdrawal, August 10 15,000.00 10,000.00
Withdrawal, September 30 25,000.00
Addt’l Investment, October 30 35,000.00 15,000.00
Withdrawal,November 30 15,000.00 25,000.00
Capital Balance, December 31, 2019 66,000.00 52,000.00