Professional Documents
Culture Documents
De Partnership
De Partnership
PARTNERHIP
Name: Score:
Course & Section: Date:
1. When an unlawful partnership is dissolved by a juridical decree, to whom shall the partnership
profits go?
a. Partnership is a juridical entity which has a personality separate and distinct from that of each
of the partners.
b. There must be intent to form a partnership because of the element of delectus personae which
means the right of a person to choose those whom he wants to be associated with in
partnership.
c. There is fiduciary relation among partners.
d. All partnership contracts are consensual.
a. It is a partnership where all the partners are liable to the extent of their separate property after
the partnership assets have been exhausted.
b. It is a partnership which in reality is not partnership but is considered as one with respect to
those who, by reason of their conduct or admission, are precluded from denying its existence.
c. It is a partnership where is at least one general partner and at least one limited partner who is
liable to the extent of his investment in the partnership.
d. It is a partnership which actually exists among the partners as well as to third persons.
5. In the absence of agreement as to the sharing of profits, how shall industrial partner share with it?
6. In the absence of agreement as to the sharing of losses, how shall industrial partner share with it?
7. C, a capitalist partner and I, an industrial partner agreed with the following profit or loss sharing
terms. I will share equally in the profit and there is no agreement as to losses. On 2020, the
partnership had Php 10,000 net loss. On 2021, the partnership had Php 20,000 net income. How
much shall be received by I as his share for the two years?
8. Which of the following statements is true as regards to the right of industrial partner to engage in
another business?
a. As industrial partner cannot engage in a business of the same kind for himself unless the
partnership expressly permits him to do so.
b. An industrial partner cannot engage in any business for himself, unless the partnership
expressly permits him to do so.
c. An industrial partner may engage in any business for himself, unless the partnership
expressly prohibits him to do so.
d. An industrial partner may engage in a business of the same kind for himself, unless the
partnership expressly prohibits him to do so.
9. What is the remedy of the capitalist partner if the industrial partner engages in business for
himself without the express permission of the partnership?
10. Which of the following is true as regards to the right of capitalist partner to engage in another
business?
11. What is the effect if a capitalist partner engages in the same kind of business without stipulation
allowing him to do engage in that business?
I. The capitalist partner shall bring to the common fund any profits accruing to him from
the transaction.
II. The capitalist partner shall bear all the losses.
a. I only
b. II only
c. Neither I nor II
d. Both I and II
12. The following are the rules on sharing of partnership liabilities to third persons as regards to
general partners, whether capitalist or industrial, except
a. The liability of the partnership shall be divided pro- rata among the partners.
b. Each general partner, whether capitalist or industrial, shall be liable with his separate property
after all the assets of the partnership have been exhausted.
c. A stipulation exempting a general partner from pro rata and subsidiary liability after the
exhaustion of partnership asset is valid as to third persons.
d. A stipulation exempting a general partner from pro rate and subsidiary liability after the
exhaustion of partnership asset is valid among the partners.
13. In the absence of agreement among the partners, where shall the partnership’s books be kept?
14. A partnership shall operate under a firm name, which may or may not include the name of one or
more of the partner. If a third person, not being a member of the partnership, includes his name in
a firm name, what shall be the effect?
15. In the absence of stipulation to the contrary, when shall the juridical personality of the partnership
begins?
16. In the absence of stipulation to the contrary, what is the obligation of the partners as to the
contribution of capital?
17. The following are the obligations of the partners with respect to the contribution of money, except
a. To deliver to the partnership at the time it was constituted or on the date stipulated the money
he has promised to contribute.
b. To pay interest on the amount he had promised to contribute from the time he should have
complied with his obligation.
c. To pay damages suffered by the partnership by reason of the default.
d. To answer for eviction.
18. In the absence of agreement to the contrary, what is the obligation of a partner in case of
imminent loss of the business of the partnership?
a. To contribute additional share of capital to the partnership to save the venture and to sell his
interest to the other partners if he refuses to contribute such additional capital unless he is an
industrial partner or exempted by stipulation.
b. To sell his interest to the other partners even if he wants to contribute.
c. To dissolve the partnership.
d. To convert the partnership into a corporation.
19. The following are the liabilities or obligations of the partnership to the partners, except
a. The partnership shall be responsible to every partner for the amounts he may have disbursed
on behalf of the partnership and for the corresponding interest, from the time the expense are
made.
b. The partnership shall answer to each partner for the obligations he may have contracted in
good faith in the interest of the partnership business.
c. The partnership shall answer for the personal liabilities and debts of the partners.
d. The partnership shall answer to each partner the risks as a consequence of its management.
21. An admission or representation made by any partner concerning partnership affairs within the
scope of his authority is evidence against the partnership. The following are the requisites in order
for an admission or representation of a partner to be used as evidence against the partnership,
except
22. What is the effect if a person, by words spoken or written or by conduct, represents himself to
specific persons, or consents to another representing him to anyone, as a partner in an existing
partnership or with one or more persons no actual partners?
a. The nominal partners is liable pro- rata like a general partner only to persons to whom such
representation has been made, who has, on the faith of such representation, given credit to the
actual or apparent partnership.
b. The nominal partner is liable like a limited partner only to persons to whom such
representation has been made, who has, on the faith of such representation, given credit to the
actual or apparent partnership.
c. The nominal partner is not liable as a partner because he does not become a partner in the
partnership.
d. The nominal partner is liable as partner only if the other persons or partners consented to such
representation.
23. What is the extent of liability of a person admitted as general partner into an existing partnership?
a. He is liable for all the obligations of the partnership arising before his admission as thought
he had been a partner when such obligations were incurred, except that this liability shall be
satisfied only out of partnership property, unless there is a stipulation to the contrary.
b. He is liable pro- rata and subsidiarily for all obligations incurred after his admission as a
partner.
c. Both A and B.
d. Neither A nor B.
24. The following are the rules in preference of credits of partnership creditors and partner’s
creditors, except
a. Partnership creditors shall be paid out first out of partner’s separate assets.
b. Partner’s separate creditor shall be paid out of the share of the partner owing him if there is
an excess in the partnership’s assets over partnership’s liabilities.
c. The partner’s separate creditors have preference over the partner’s separate assets.
d. The partnership’s creditors have preference over the partnership’s assets.
a. It is a change in the relation of the partners caused by any partner ceasing to be associated in
the carrying on of the business.
b. It is the process of settling the disputes or affairs of the partnership after the dissolution or
winding up of the partnership business.
c. It refers to the point when all of the business or affairs of the partnership are completely
wound up.
d. All of the above.
26. The PQR Partnership is being dissolved. All liabilities have been paid and the remaining assets
are being realized gradually. The equity of the partnership is as follows:
P P24,000 P 6,000 3
Q 36,000 - 3
R 60,000 (10,000) 4
The second cash payment to any Partner (s) under a program of priorities shall be made thus:
a. To R P2,000
b. To Q P6,000
c. To R P8,000
d. To Q P6,000 & R P8,000
Partners Dennis and Lilly have decided to liquidate their business. The following information is
available:
Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of liquidation, half
the
inventory is sold for P60,000, and P60,000 of the accounts payable is paid. During the second
month, the rest of the inventory is sold for P45,000, and the remaining accounts payable are paid.
Cash is distributed at the end of each month, and the liquidation is completed at the end of the
second month.
27. Using a safe payments schedule, how much cash will be distributed to Dennis at the end of the
first month?
a. P 64,000
b. P 60,000
c. P 24,000
d. P 36,000
28. Assume instead that the remaining inventory was sold for P10,000 in the second month. What
payments will be made to Dennis and Lilly at the end of the second month?
Dennis Lilly
a. Php 0 Php 0
b. Php 10,000 Php 0
c. Php 5,000 Php 5,000
d. Php 6,000 Php 4,000
29. Under cash priority program, when all of the priorities are paid, any remaining cash distribution is
30. On April 30, 2016, A, B and C formed a partnership by combining their separate business
proprietorships. A contributed cash of Php 500,000. B contributed property with a Php 360,000
carrying amount, a Php 400,000 original cost, and Php 800,000 fair market value. The partnership
accepted responsibility for the Php 350,000 mortgage attached to the property. C contributed
equipment with a Php 300,000 carrying amount, a Php 750,000 original cost, and Php 550,000
fair value. The partnership agreement specifies that profits and losses are to be shared equally but
is silent regarding capital contributions. What are the capital balances of the partners at April 30,
2016?
A B C
a. 500,000 800,00 550,000
b. 500,000 450,000 550,000
c. 500,000 360,000 300,000
d. 500,000 400,000 750,000
31. The Traders Company, a partnership, was formed on January 1, 2015, with four partners, DD,
EE, FF and GG. Capital contributions were as follows: DD, P50,000; EE, P25,000; FF, P25,000
and GG, P20,000. The partnership agreements provide that partners shall receive 5% interest in
the amounts of their capital contributions. In addition, DD is to receive a salary of P5,000 and EE
a salary of P3,000. The agreement further provides that FF shall receive a minimum of P2,500 per
annum from the partnership and GG a minimum of P6,000 per annum, both including amounts
allowed as interest on capital and their respective shares of profits. The balance of the profit is to
be shared in the following proportions: DD, 30%; EE, 30%; FF, 20%, and GG, 20%. Calculate
the amount that must be earned by partnership during 2015, before any charges for interest on
capital or partner’s salaries, in order that DD may receive an aggregate of P12,500 including
interest, salary and share of profits.
a. P16,667
b. 30,000
c. P30,667
d. 32,333
32. XYZ Partnership provided for the following in their distribution of profits and losses:
First: X to receive 10% of the net income up to 100,000 and 20% of the amount in excess thereof.
Second: Y and Z are each to receive 5% of the remaining income in excess of Php 150,000 after
X’s share.
If the partnership earned a net income of Php 250,000, what is the total share of Partner X?
a. 100,000
b. 108,000
c. 110,000
d. 130,000
H, I, J, and K own a publishing company that they operate as a partnership. Their agreement includes the
following:
I. H will receive a salary of Php 20,000 and a bonus of 3% of income after all bonuses.
II. I will receive a salary of 10% and a bonus of 2% of income after all the bonuses.
III. All partners are to receive the following: H- 5,000; I- 4,500; J- 2,000; and K- 4,700,
representing 10% interest on their average capital balances.
IV. Any remaining profit are to be divided equally among the partners.
33. How would a net loss of Ph 40,000 would be allocated among the partners?
H I J K
a. 3,261.75 (7,169.25) (18,181.25) (17,911.25)
b. 3,450 (7,050) (19,550) (16,850)
c. 4,116.75 (6,764.25) (20,026.25) (17,326.25)
d. 45,000 4,500 (8,000) (5,300)
34. Assuming a profit of Php 40,000. How would this amount be distributed to them given the
following order of priority: Interest on invested capital, then bonuses, then salary, and then
according to profit and loss percentage?
35. Flamingo, Durango and Mortero are partners in a wholesale business. On January 1, 2014 the
total capital was P240,000 and drawings presented as follows:
Capitals Drawings
Flamingo P 50,000 P 30,000
Durango 40,000 20,000
Mortero 150,000 10,000
Partners agree that profit and loss ratio are shared equally. Because of the failure of some debtors
to pay their outstanding accounts, the partnership loss heavily and the partners are compelled to
liquidate the partnership. After exhausting the partnership assets, including those arising from an
operating profit of P36,000 in 2014, they still owe P42,000 to creditors on December 31, 2014.
Flamingo has no personal assets but the others are well off.
What are the (1) partnership liquidating loss, and (2) the amount that Mortero will receive as a
result of the liquidation?
36. On December 31, 2014, the accounting records of MMM, NNN, and OOO Partnership (a general
partnership) included the following ledger account balances:
(Dr.) Cr.
MMM, drawing P( 60,000)
OOO, drawing ( 22,500)
NNN, loan 75,000
MMM, capital 307,500
NNN, capital 251,250
OOO, capital 270,000
Total assets of the partnership amounted to P1,196,250, including P131,250 cash, and partnership
liabilities totaled P375,000. The partnership was liquidated on December 31, 2011, and OOO
received P208,125 cash pursuant to the liquidation. MMM, NNN, OOO shared net income and
losses in a 5:3:2 ratios, respectively.
What is (1) the amount realized from the sale of non-cash assets; (2) the cash balance after
payment of liabilities.
37. Following is the balance sheet of Arami, Portho and Artagna Partnership on June 4, 2014,
immediately prior to its liquidation:
The following are the capital account balances and the profits and loss ratio of the partners in the
Motorola Company on December 31, 2014:
Capital Account Profit and
Balances Loss Ratio
MM P120,000 25%
TT 160,000 50%
RR 400,000 25%
I. LL is to share 1/3 in the profits and loss while the other partners continue to participate in
profits and loss ratio in their original ratio.
II. LL is to pay TT, P48,000 for a ¼ interest of the latter’s equity in the partnership assets and to
invest P280,000 cash in the partnership.
III. The total capital after LL’s admission is to be P1,040,000, of which LL’s capital account is to
show P300,000.
38. The capital account balances of the partners after LL’s admission are:
39. The new profit and loss ratio of all partners after LL’s admission:
The partners share profits and losses as follows: BB, 20%; CC, 30%; and DD, 50%. CC is retiring from
the partnership and partners agreed that other assets should be adjusted to their fair value of P300,000 at
December 31, 2014. They further agree that CC will receive P122,000 cash for his partnership interest
exclusive of his loan, which is to be paid in full, and that no goodwill implied by CC’s payment will be
recorded. After CC’s retirement, the capital balances of BB and DD, respectively will be:
41. The following condensed balance sheet is presented for the partnership of AA and BB, who share
profits and losses in the ratio of 6:4, respectively:
Assets
Cash P 270,000
Other Assets ,3,750,000
BB, Loan ,180,000
Total Assets P4,200,000
The assets and liabilities are fairly valued on the balance sheet. AA and BB decide to admit CC as a new
partner with 20% interest. No Bonus or goodwill is to be recorded. What amount should CC contribute or
invest in cash or other assets?
a. Php 660,000
b. Php 696,000
c. Php 840,000
d. Php 870,000
The partnership of Maring and Habagat began business on January 1, 2020. The following assets were
contributed by each partner (the non-cash assets are stated at their fair values on January 1, 2020):
Maring Habagat
Cash P 30,000 P 20,000
Inventories 50,000 -
Land - 200,000
Equipment 100,000 -
The land was subject to a P65,000 mortgage, which the partnership assumed on January 1, 2020. The
equipment was subject to an installment note payable that had an unpaid principal amount of P35,000 on
January 1, 2020. The partnership also assumed this note payable. According to the partnership agreement,
each partner was to have a 50% capital interest on January 1, 2020, with total partnership capital being
P300,000. Maring and Habagat agreed to share partnership income and losses in the following manner:
Maring Habagat
Interest on beginning capital 4% 4%
Salaries P 15,000 P 10,000
Remainder 60% 40%
• Inventory was acquired at a cost of P30,000. At December 31, 2013, the partnership owed P6,000
to its suppliers. The partnership inventory at December 31, 2013 was P20,000.
• Principal of P10,000 was paid on the mortgage. Interest expense incurred on the mortgage was
P4,000, all of which was paid by December 31, 2013.
• Principal of P7,500 was paid on the installment note. Interest expense incurred on the installment
note was P2,500, all of which was paid by December 31, 2013.
• Sales on account amounted to P115,000. At December 31, 2013, customers owed the partnership
P10,000.
• Selling and general expenses, excluding depreciation, amounted to P21,000. At December 31,
2013, the partnership owed P3,000 of accrued expenses. Depreciation expense was P5,000.
• Each partner withdrew P225 each week in anticipation of partnership profits.
• The partners allocated the net income for 2013 and closed the accounts.
Additional information:
On January 1, 2021, the partnership decided to admit Nando to the partnership. On that date, Nando
invested P100,900 of cash into the partnership for a 20% capital interest.
42. The share of Habagat on the net income of 2020 must be:
a. P10,200
b. P9,000
c. P3,000
d. P1,000
a. P138,000
b. P139,800
c. P148,800
d. P150,600
44. The capital balance of Habagat after Nando’s admission must be:
a. P150,140
b. P151,100
c. P155,900
d. P156,860
45. Janine and Nicole formed a general professional partnership (practicing law) in the Philippines on
January 1, 2014. Their capital contributions were credited to their respective capital accounts as
follows:
During the year, the partnership earned profit before tax of P4,000,000. The income tax rate was
30%. How much is the share of Nicole in the partnership profit?
a. P1,750,000
b. P2,500,000
c. P1,500,000
d. P2,000,000
46. Manolo, Jane, Joshua and Loisa own a publishing company that they operate as a partnership.
Their agreement includes the following:
• Manolo will receive a salary of P20,000 and a bonus of 3% of income after all the
bonuses
• Jane will receive a salary of P10,000 and a bonus of 2% of income after all the bonuses
• All partners are to receive the following: Manolo – P5,000; Jane – P4,500; Joshua –
P2,000; and Loisa – P4,700, representing 10% interest on their average capital balances.
• Any remaining profits are to be divided equally among partners
• Partnership reports a profit of P40,000.
How much is Jane’s share in the profit if the profit is distributed in the following order of priority:
interest on invested capital, then bonuses, then salary, and then according to profit and loss
percentage?
a. P12,443
b. P12,560
c. P12,830.75
d. P13,235.75
On June 1, 2020, L and M formed a partnership with cash investments of P330,000 and P420,000,
respectively. Upon formation, the partners agreed to bring their capital ratio in proportion with their profit
or loss ratio which is L-30% and M-70% and M is the partner who has to invest or sufficient amount of
cash to conform with the agreement.
Profit allocation were as follows: monthly salaries, L-P36,000 and M-P30,000. The partners will be
allowed with interest of 12% on their capital balances at the end of the year before closing the income
summary account and any distribution against net income. M receives a bonus of 20% of net income after
deducting the bonus and his salary.
On August 1, 2020, L invested additional P80,000 and withdrew P30,000 on October 1, 2020. On
September 1, 2020, M invested additional P48,000 cash and withdrew P18,000 on December 1,2020.
In 2020, the partnership reported net income of P450,000 before any deductions and each partner has
drawings of P150,000 distributed at year-end against share in net income.
On January 1, 2021, N was admitted as a partner by purchasing 1/3 interest of M, paying the selling
partner the amount of P276,000. N also invested P230,000 cash for a total interest of 20% in capital of the
partnership.
a. P498,294
b. P541,340
c. P512,290
d. P529,798
a. P718,202
b. P724,306
c. P702,220
d. P698,440
49. D, E and F attorneys, decide to form a partnership and agree to distribute profits in the ratio of
5:3:2. It is agreed, however, that D and E shall guarantee fees from their own clients of P60,000
and P50,000 respectively, that any deficiency is to be charged directly against the account of the
partner with fees exceeding the guarantee. Fees earned during 2020 are classified as follows:
From the above data, compute the net effect on partners’ capital increase or (decrease) by:
D E F
50. Monica, Adrian and Nicole were partners in The Legal Wife Partnership. Their profit ratio is
5:3:2 while the original interest ratio is 4:4:2. On July 1, 2020, Max was admitted by the
partnership for 20% interest in capital and 25% in profits by contributing P87,500 cash, and the
old partners agree to bring their interest to their original capital ratio. Max is the recipient of the
transfer of capital of P280,000 from the existing partners. The partnership had a net income of
P210,000 before admission of Max. Prior to the admission of Max, the partners agree to revalue
its overvalued equipment by P35,000. Capital balance of Adrian increased by P10,500 as a result
of the admission of Max while the capital balance of Nicole at the start of the year is P700,000.
The capital balance of Monica at the start of the year is:
a. P350,000
b. P354,000
c. P441,000
d. P577,500
51. Rushnell, Adrianne and Christine were partners with capital balances on January 2, 2020 of
P350,000, P525,000 and P700,000. Their profit ratio is 5:3:2 while the original interest ratio is
4:4:2. On July 1, 2014, Jensie was admitted by the partnership for 20% interest in capital and
25% in profits by contributing P87,500 cash. The partnership had a net income of P210,000
before admission of Jensie. Prior to the admission of Jensie, the partners agree to revalue its
overvalued equipment by P35,000. The capital balance of Rushnell after admission of Jensie is:
a. P297,500
b. P354,200
c. P470,400
d. P588,000
52. Partners A, B, C and D, who share profits 5:3:1:1 respectively, decide to dissolve. Capital balances at
this time are P60,000, P40,000, P30,000 and P10,000 respectively. Before selling the firm’s assets, the
partners agree to the following:
• Partnership furniture and fixtures, with the book value of P12,000, is to be taken over by partner
A at a price of P15,000.
• Partnership claims of P20,000 are to be paid off and the balance of cash on hand, P30,000, is to
be divided in a manner that will avoid the need for any possible of cash from a partner.
A B C D
a. P0 P0 P 30,000 P0
b. P(2,500) P 11,500 P 20,500 P 500
c. P0 P 20,000 P 10,000 P0
d. P0 P 20,000 P 20,000 P0
On December 1, 2014, XX and YY formed a partnership with each contributing the following assets at
fair market values:
XX YY
Cash P36,000 P 72,000
Machinery and equipment 54,000
Land 360,000
Building 108,000
Office furniture
53. The land and building are subject to a mortgage loan of P216,000 that the partnership will
assume. The partnership agreement provides that XX and YY share profits and losses, 40%
and 60%, respectively and partners agreed to bring their capital balances in proportion to the
profit and loss ratio using the capital balance of YY as basis.
REQUIRED: (1) the additional cash made by XX, and (2) assuming that the land and building are
unencumbered by a mortgage because YY inherited them several years ago, and that the tax basis
to YY is P90,000, the capital account of YY should have an initial balance of:
AA P 96,000
BB 144,000
CC 216,000
According to the general partnership contract, the partners were to be remunerated as follows:
(1.) Salaries of P14,400 for AA, P12,000 for BB, and P13,600 for CC.
(2.) Interest of 12% on the average capital account balances during the year.
(3.) Remainder divided 40% to AA, 30% to BB, and 30% to CC.
Income before partners’ salaries for the year ended December 31, 2014, was P92,080. AA
invested an additional P24,000 in the partnership on July 1; CC withdrew P36,000 form the
partnership on October 1; and as authorized by the partnership contract, AA, BB and CC each
withdrew P750 monthly against their shares on net income for the year.
If salaries to partners’ are to be recognized as operating expenses by the partnership, compute the:
(1) share of AA in the net income, and (2) the capital balance of CC on December 31, 2014:
55. DD and EE were organized and began operations on March 1, 2020. On that date, DD
invested P150,000 and EE invested land and building with current fair value of P80,000 and
P100,000 respectively. EE also invested P60,000 in the partnership on November 1, 2014
because of its shortage of cash. The partnership contract includes the following remuneration
plan:
The annual salary was to be withdrawn by each partner in 12 monthly installments. During the
fiscal year ended, February 2015, DD and EE had net sales of P500,000, cost of good sold of
P280,000, and total operating expenses of P100,000 (excluding partners’ salaries and interest on
average capital account balances). Each partner made monthly cash drawings in accordance with
partnership contract. The capital balance of each partner on March 1, 2021 should be:
The partners have decided to liquidate the business. Activities for October and November are as
follows:
October
• Ral is short of funds and the partners agree to charge her loan to her capital account.
• P40,000 is collected on the accounts receivable; P4,000 is written off as uncollectible.
• Half the inventory is sold for P50,000.
• Equipment with a book value of P55,000 is sold for P60,000.
• The P50,000 bank note plus P600 accrued interest is paid in full.
• The accounts payable are paid.
• Liquidation expenses of P2,000 are paid.
• Except for a P5,000 contingency fund, all available cash is distributed to partners at the
• end of October.
November
56. How much would Tom receive for the month of October?
a. P16,700
b. P33,400
c. P34,286
d. P35,400
57. How much cash would Vic receive for the month of November?
a. P 6,886
b. P 9,720
c. P10,400
d. P35,400
OO and PP are partners sharing profits in this proportion – 60:40. A balance sheet prepared for the
partners on April 1, 20x4 shows the following:
On this date, the partners agree to admit RR as a partner. The terms of the agreement are
summarized below.
OO, PP and RR will divide profits in the ratio of 5:3:2. Capital balances of the partners after the
formation of the new partnership are to be in the aforementioned ratio, with OO and PP making cash
settlement between them outside of the partnership to adjust their capitals, and RR investing cash in
the partnership for his interest.
a. P60,250
b. P47,500
c. P50,000
d. P59,375
59. The total capital of the partnership after the admission of RR is:
a. P296,875
b. P301,250
c. P237,500
d. P286,850
61. The liability of the partners, including industrial partners for partnership contracts entered
into in its name and for its account, when all partnership assets have been exhausted is
a. Pro- rata
b. Joint
c. Solidary
d. Voluntary
63. A limited partnership has A, as general partner, B as limited partner and C, as industrial
partner contributing Php 100,000, Php 50,000 and services respectively. The partnership
failed and after disposing all its assets to pay partnership debts, there still remains a note
payable in the sum of Php 30,000. Against whom can the creditor demand payment?
64. X, Y and Z form a Y partnership to engage in import- export business. The partners agreed
that the profit will be divided on the following ratio: X- 20%, Y- 30%, Z- 50%, but no
agreement as to losses. After one year of operation, there was a loss of Php 10,000. How will
you apportion this loss if the capital contributions are as follows: X- Php 20,000; Y- Php
15,000; Z- Php 5,000.
a. According to their capital contribution: Php 5,000; Y- Php 3,750; Z- Php 1,250
b. Equally among X, Y and Z
c. X- Php 2,000; Y- Php 3,000; Z- Php 5,000
d. A third party may be called to make the distribution
65. Partners A, B and C met a tragic accident. A and B instantly died on the spot, while C was
brought to the hospital but died a few hours later. Who may wind- up partnership affairs?
a. Legal representative of A
b. Legal representative of B
c. Legal representative of C
d. The court should appoint a representative who will wind- up the affairs
66. A, B and C agreed to form Y Partnership. It was orally agreed that A would contribute Php
20,000, B Php 15,000 and C Php 5,000. It was also orally agreed that in the event the venture
proved to be a financial loss, all losses above the amounts of capital contributed would be
assumed by A. There were no other express agreements. Under theses circumstances, which of
the following is correct?
a. Profits are to be divided in accordance with the wish of A being the major contributor
b. Profits are to be divided equally
c. The partnership is a nullity because the agreement is not contained in a signed writing
d. The partnership is valid notwithstanding failure to put the agreement in a public instrument
a. Must not own limited- partnership interests in other competing limited partnership
b. Is automatically an agent for the partnership with apparent authority to bind the limited
partnership in contract
c. Has no liability to creditors even if he takes part in the control of the business as long as he is
held out as being a limited partner
d. Should not contribute industry
68. S and G established a partnership contributing Php 200,000 each. F, a classmate allowed his
name to be included in the firm name of the partnership. The partnership was insolvent and
after exhausting all the remaining assets, there remains a liability to third persons amounting
to Php 30,000. The creditors can compel
69. Using the preceding number, if the partnership is solvent and there is a profit of Php 30,000,
`without any stipulation as regards profit sharing, the participation of the partners on the profit
will be
a. Just and equitable share for F, and the remainder, equally between S and G
b. Equally, Php 10,000 each among S, G and F
c. Equally Php 15,000 each between S and G
d. The court will intervene
70. A limited partner who takes active participation in the management of the partnership shall
become
a. A managing partner
b. A general partner
c. Liable a general partner
d. An ostensible partner