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Ac11 Bondoc - Elma Joyce: Easy Questions
Ac11 Bondoc - Elma Joyce: Easy Questions
Ac11 Bondoc - Elma Joyce: Easy Questions
EASY QUESTIONS
1. The business assets and liabilities of Elena and Damon appear below:
Elena Paul
Cash ₱11,000 ₱22,354
Accounts Receivable 234,536 567,890
Inventories 120,035 260, 102
Land 603,000 -
Building - 428,267
Furniture and Fixtures 50,345 34,789
Other Assets 2,000 3,600
Total ₱1, 020,916 ₱1,317,002
Elena and Damon agreed to form a partnership contributing their respective assets and equities
subject to the following adjustments:
The capital account of the partners after the adjustments will be:
a. Elena’s ₱ 615,942
Damon’s 717,894
b. Elena’s ₱ 614,476
Damon’s 683,052
c. Elena’s ₱ 649,876
Damon’s 712,345
d. Elena’s ₱ 613,576
Damon’s 683,350
Answer: B
2. Bonnie, Caroline, Enzo and Stefan own a publishing company that they operate as a partnership.
The partnership agreement includes the following:
Bonnie receives a salary of ₱20,000 and a bonus of 3% of income after all bonuses.
Caroline receives a salary of ₱10,000 and a bonus of 2% of income after all bonuses.
All partners are to receive 10% interest on their capital average balances.
Any remaining profits and loss are to be divided equally among the partners.
Answer: A
Solution:
3. O n J a n u a r y 2 , 2
₱175,000.00 and Jossie, ₱25,000.00. They agreed to share profits and losses 80% and 20%,
respectively. Jossie is the general manager and works in the partnership full time and is gven a
salary of ₱5,000 a month; an interest of 5% of the beginning capital (of both partner ) and a
bonus of 15% of net income before the salary, interest and the bonus.
The profit and loss statement of the partnership for the year ended December 31, 2019 is as
follows:
Net Sales…………………………………………………………………………….₱875,000
Cost of Good Sold…………………………………………………………………. 700,000
Groos Profit……………………………………………………………………..…..₱175,000
Expenses(including the salary, interest and bonus) ………………….………. 143,000
Net Income…………………………………………………………………………₱ 32,000
The amount of bonus to Jossie in 2019 amounted to:
a. ₱13,304
b. 16,456
c. 18,000
d. 20,700
Answer: C
Solution:
4. The following condensed balance sheet is presented for the partnership of Clarisse, Mellissa and
Suzanne, who share profits and losses in ratio of 4:3:4, respectively:
Cash………………………………………………………………………………..₱ 160,000
Other Assets ……………………………………………………………………… 320,000
Total ………………………………………………………..……………..₱ 480,000
The partners agreed to dissolve the partnership after selling the other assets for
₱200,000. Upon dissolution of the partnership, Clarisse should have received.
a. ₱ 0
b. 48,000
c. 72,000
d. 84,000
Answer: A
Solution:
MODERATE QUESTIONS
1. Elmer, a partner in the MegaBox Partnership, has a 30% participation in partnership profits and
losses. Elmer’s capital account has a net decrease of ₱1,200,000 during the calendar year 2019.
During 2019, Elmer withdrew ₱2,600,000(charged against his capital account) and contributed
propert valued at ₱500,000 to the partnership. What was the net income of the MegaBox
Partnership for year 2019?
a. ₱3,000,000
b. 4,666,667
c. 7,000,000
d. 11,000,000
Answer: A
Solution:
AC11 BONDOC_ELMA JOYCE
2. The partners’ capital of Hannah, Emily, Alison and Spencer LLP on May 31, 2019, were as
follows:
On May 31, 2019, with the consent of Hannah, Emily and Spencer:
a. Alison retired from the partnership and was paid ₱50,000 cash in full settlement of his
interest in the partnership.
b. Danna was admitted to the partnership with a ₱20,000 cash investment for 10%
interest in the net assets of Hannah, Emily and Spencer.
a. ₱20,000
b. 27,000
c. 22,000
d. 25,000
Answer: C
Solution:
AC11 BONDOC_ELMA JOYCE
3. Leo, Dave and Jayvee are partners in shirt manufacturing business, sharing profits and losses
equally. On December 31, 2019 the partnership capital and partners drawing were as follows:
The partnership was unable to collect on trade receivables and was forced to liquidate. Operating
profit in 2019 amounted to ₱72,000 which was all exhausted, including the partnership assets.
Unsettled creditor’s claims at December 31, 2019 totalled ₱84,000. Dave and Jayvee have
substantial private resources, but Leo has no personal assets.
Answer: A
Solution:
AC11 BONDOC_ELMA JOYCE
4. April, Shin and Jen formed a partnership on January 1, 2019. Each contributed ₱120,000.
Drawings were equal to salaries and be taken out evenly throughout the year.
With sufficient partnership net income, April, Shin and Jen split a bonus equal to 25% of a
partnership net income after salaries and bonus(in no event could the bonus go below zero).
Remaining profits were to be split as follows: 20% for April; 30% for Shin, and 40% for Jen.
Answer: C
Solution:
AC11 BONDOC_ELMA JOYCE
DIFFICULT QUESTIONS
1. Emerlou and Lourdes are partners sharing profits and losses in ratio of 1:2, respectively. ON July
1, 2019, they decided to form the E & L Corporation by transferring the assets and liabilities from
the partnership to the Corporation in exchange of its shares. The following is the post-closing trial
balance of the partnership:
Debit Credit
Cash ₱45,000
……………………………………..
Accounts Receivable(net)……… 60,000
Inventory ……………………………… 90,000
Fixed Assets(net)…………………… 174,000
Liabilities………………………………. ₱60,000
.
Emerlou, Capital……………………. 94,800
Lourdes, Capital…………………….. 214,200
₱369,000 ₱369,000
It was agreed that adjustments be made to the following assets to be transferred to the
corporation:
The E & L Corporation was authorized to issue ₱100 par preference shares and ₱10 par ordinary
share. Emerlou and Lourdes agreed to receive for their equity in the partnership 720 ordinary
share each, plus even multiples of 10 shares for their remaining interest.
The total number of shares of preference and ordinary share issued by the Corporation in
exchange of the assets and liabilities of the partnership are:
Answer: B
Solution:
2. On
November 30, 2019, Ynna, Abi and Rick decided to liquidate YAR Partnership. Their capital
balances and profit and loss on this date are as follows:
For Ynna to receive ₱55,200 in full settlement of his interest in the firm, how much must be
realized from the sale of the firm’s non-cash assets?
a. ₱233,000
b. 255,000
c. 149,000
d. 193,000
Answer: D
Solution:
e.
f.
g.
h.
i.
j.
k.
l.
m.
3. Justo, Jerald and Jonard, partners of 3J Partnership, shared profits and losses in the ratio of
5:3:2, respectively. On December 21, 2018, the end of an unprofitable year, they decided to
liquidate the partnership. The partners’ capital account balances on the date were as follows:
If Justo received a total of ₱20,000 as a result of liquidation, what was the total amount realized
by the partnership on the non-cash assets?
a. ₱ 85,900
b. 91,900
c. 67,900
d. 61,900
Answer: D
Solution:
e.
f.
g.
h.
i.
j.
k.
l.
m.
AC11 BONDOC_ELMA JOYCE
4. Luzviminda and Ceriaca partnership’s balance sheet at December 31, 2018, reported the
following:
On January 2, 2019, Luzviminda and Ceriaca dissolved their partnership and transferred all
assets and liabilities to a newly-formed corporation. At the date of incorporation, the fair value of
the net assets was ₱12,000 more than the carrying amount on the partnership’s books.
Luzviminda and Ceriaca were each issued 5,000 shares of the corporation’s ₱1 par value
ordinary share. Immediately following incorporation, share premium/additional paid-in-capital in
excess of par should be credited for:
a. ₱ 68,000
b. 70,000
c. 77,000
d. 82,000
Answer: D
Solution: