CHAPTER 3

Partnership Operations
Multiple Choice
1. C Jan. 1 – Mar. 31 P 80,000 x 3 = P 240,000
Apr. 1 – May 31 96,000 x 2 = 192,000
June 1 – Aug. 31 112,000 x 3 = 336,000
Sept. 1 – Dec. 31 72,000 x 4 = 288,000
P1,056,000 / 12 = P88,000

2. B Bañas Belda
Capital beg. P 120,000 P 118,000
Share in net loss (32,000) (16,000)
P88,000 P102,000

3. A Bernardo Belo
Salaries P 110,000 P 90,000
Balance – 60:40 (12,000) (8,000)
P98,000 P82,000

4. D Bustos
Net Profit P220,000
Bonus P220,000 x 10%/110% (20,000) 20,000
Interest P220,000 – P200,000 = P20,000 x 10% (2,000)
Salaries ( 44,000) 24,000
Balance P 154,000
Share of Bustos x 2/10 30,800
Total profit share of Bustos P74,800
5. B Banta:
Jan. 1 – June 30 P200,000 x 6 = P 1,200,000
Jul. 1 - Dec. 31 320,000 x 6 = 1,920,000
P 3,120,000 / 12 = P260,000 x 10% = P26,000

Berba: P300,000 x 10% = 30,000

Borja:
Jan. 1 – Sept. 30 P450,000 x 9 = P4,050,000
Oct. 1 – Dec. 31 310,000 x 3 = 930,000
P4,980,000/12 = P415,000 x 10% = 41,500
P97,500

6. C Salaries = P120,000 + P96,000 + P72,000 P 288,000

Interest 97,500
Balance = P10,000 x 3 30,000
Total P 415,500

7. C Original capital P 950,000

Additional investment 120,000
Withdrawals ( 140,000)
Net income 415,500
Total partnership capital P1,345,500
8. B Besa Basco Buan Baduel Total
Interest P 7,500 P3,750 P3,750 P3,000 P18,000
Salaries 15,000 9,000 24,000
Add’l profit to Baduel 5,000 5,000
Balance 15,000* 15,000 10,000 10,000 50,000
P37,500 P27,750 P13,750 P18,000 P97,000
*P37,500 – P7,500 – P15,000 = P15,000/30% = P50,000
9. B
10. C

11. C try distributing any profit or loss amount

12. C Bulan Bustos Bucao Total

Salaries P24,000 P18,000 P12,000 P 54,000
Interest 19,500 24,700 29,400 73,600
Balance – 2:4:4 10,480 20,960 20,960 52,400
Total P53,980 P63,660 P62,360 P180,000
Bulan
Jan. 1 – July 1 P150,000 x 6 = P 900,000
July 1 – Oct. 1 180,000 x 3 = 540,000
Oct. 1 – Dec. 31 170,000 x 3 = 510,000
P1,950,000 / 12 = P162,500
Bustos
Jan. 1 – Aug. 1 P200,000 x 7 = P1,400,000
Aug. 1 – Oct. 1 220,000 x 2 = 440,000
Oct. 1 – Dec. 31 210,000 x 3 = 630,000
P2,470,000 / 12 = P205,833
Bucao
Jan. 1 – Nov. 1 P250,000 x 10 = P2,500,000
Nov. 1 – Dec. 31 220,000 x 2 = 440,000
P2,940,000 / 12 = P245,000

13. A Bulan Bustos Bucao

Original capital P150,000 P200,000 P250,000
Additional investment 30,000 20,000
Withdrawals ( 10,000) ( 10,000) ( 30,000)
Share in net income 53,980 63,660 62,360
Capital, Dec. 31, 2005 P223,980 P273,660 P282,360

14. D Briones Balen Burgos Total

Interest P 94,500 P 47,730 P 32,470 P174,700
Salaries 244,650 165,250 409,900
Balance –Equally (278,616) (278,616) (278,616) (835,848)
Total P 60,534 (P80,896) (P251,248)
TM 12
1. D
2. B
3. B
4. C
5. C
6. C Beltran Barba Total
Capital beginning P400,000 P500,000 P900,000
Share in net income-equally 200,000 200,000 400,000
Share in net loss – 2:1 ( 160,000) ( 80,000) ( 240,000)
Capital, end P440,000 P620,000 P1,060,000

7. C P2,500,000 + (P1,800,000 + P400,000) = P4,700,000 – P2,000,000 = P2,700,000

8. B Beran and Banda = 300/1,100 x P1,100,000 = P300,000;

Banjo = 500/1,100 x P1,100,000 = P500,000

9. B Banzon Borja Total

Salaries P160,000 P200,000 P360,000
Interest on beginning capital 36,000 60,000 96,000
Remainder – equally 72,000 72,000 144,000
Total P268,000 P332,000 P600,000

10. B P520,000 – P100,000 – P240,000 = P180,000 / 20% = P900,000

11. D Jan. 1 – June 30 P 840,000 x 6 = P5,040,000

July 1 – July 31 1,080,000 x 1 = 1,080,000
Aug. 1 – Dec. 31 990,000 x 5 = 4,950,000
P11,070,000/12 = P922,500 x12%=P110,700

12. D Basilio Bituin Total

Salaries P220,000 P 180,000 P400,000
Remainder – Equally ( 20,000) ( 20,000) ( 40,000)
Total P 200,000 P 160,000 P360,000
13. A P1,000,000 + (P900,000 x 20%) – P200,000 = P980,000
14. C P600,000 + P200,000 = P800,000/2 = P400,000
15. B P400,000 – P30,000 + (P450,000 x 60%) = P640,000