FINANCIALACCOUNTI NGANDREPORTI NG-PARTNERSHIP(

QUESTIONNAI RE/REVI
EWER)
CHAPTER1: PARTNERSHI PFORMATION
1.A partnerwhose l iabi
li
tyforpar
tner
shi
p debt
si sli
mit
ed t
o his capit
alcontr
ibut
ion t
othe
part
ner
shipiscalleda_ ___
___
A.Gener al
partner
B.Secretpartner
C.Limitedpar t
ner
D.Dormantpar tner

2.Apart
nerwhocont r
ibutesmoneyorpr
oper
tyt
othecapi
tal
oft
hepar
tner
shi
piscal
l
ed_
___
___
A.Industr
ialpar
tner
B.Capital
istpartner
C.Nomi nalpart
ner
D.Ostensibl
epar tner

3.Apart
nerwhoseconnect i
onwit
hthepar
tnershi
pisopenandpubl
i
csot
hathi
snamei
sincl
udedi
n
thef
ir
m nameoft hepar t
ner
shi
piscal
l
ed_____
_
A.Nomi nalpartner
B.Ostensiblepartner
C.Dormantpar tner
D.Secretpartner

4.A part
nerwhocont ribut
eshi
swor
korl
abort
othecommonf
undoft
hepar
tner
shi
piscal
l
ed
__
___
_ _
__
A.Industr
ialpart
ner
B.Capital
istpar
tner
C.Managi ngpartner
D.Nomi nalpart
ner

5.Apartnerwhohasnov oi
ceorpar
ti
cipat
ioni
nthemanagementoft
heaf
fai
rsoft
hepar
tner
shi
pis
cal
l
ed_ _
_ __
_ _
_ _
A.Dor mantpar tner
B.Silentpartner
C.Secr etpartner
D.Nomi nalpartner

6.Apart
nerwhot akeschargeoft
hewi
ndi
ngupoft
hepar
tner
shi
paf
fai
rsupondi
ssol
uti
oni
scal
l
ed
___
___
_
A.Ostensi
blepart
ner
B.Si
lentpart
ner
C.Li
mi t
edpartner
D.Li
quidati
ngpartner

7.Apart
nerwhoi snotact ual
l
yapartnerbutwhobyhisact
s,i
smadel
i
abl
easapar
tnert
othet
hir
d
per
sonsforthepartnershi
pobli
gat
ioniscal
led_
___
___
_
A.Nomi nalpart
ner
B.Dormantpar t
ner
C.Secretpart
ner
D.Li
mi t
edpar t
ner

8.General
par
tner
sar
eli
ablef
orpart
nershi
pdebt
stot
heextentoft
hei
rsepar
atepr
oper
tyaf
teral
lthe
part
nershi
passet
shavebeenexhaust
ed.Akindofpar
tnershi
pwhereallt
hepart
ner
saregener al
par
tner
siscall
ed_ _
______ _
A.Uni
versalpart
ner shi
p
B.Li
mitedpartnership
C.Generalpart
ner ship
D.Part
icul
arpartnership

9.Apart
nershipcont
racti
sper
fect
edbymer
econsentwhi
chmakesi
t__
___
__
A.Onerous
B.Nomi nat
e
C.Consensual
D.Bi
lateral

10.Apart
nershipcont
racthasaspeci
aldesi
gnat
ioni
nlaw,
whi
chmakesi
t__
___
__
A.Onerous
B.Nomi nat
e
C.Bil
ateral
D.Preparat
ory

11.Theagr
eementofthepartnersembodi
edi
napubl
i
cinst
rumenti
scal
l
ed_
___
___
_
A.Art
icl
esofco-par
tnership
B.Ar
ticl
esofi
ncorporati
on
C.By-
laws
D.Noneoftheabove

12.Tobeapar t
ner,amemberhast
ocontr
ibut
emoney
,pr
oper
ty,
ori
ndust
ryt
othepar
tner
shi
p.Thi
s
makesthepartnershi
pagr
eement__
___
___
_
A.Bi
lateral
B.Nomi nate
C.Onerous
D.Preparatory

13.Whatistheappropr i
atemeasurementbasisforanon-cashassetcontr
ibuted byapartneri
na
part
ner
ship?
A.Assessedvaluati
onoftheassetforproper
tytaxpurposes
B.Ori
ginalpur
chasepr i
ceoftheassetbasedont her
ecordofthecont
ributi
ngpar
tner
C.Contri
buti
ngpar t
ner'
staxbasi
sfortheasset
D.Fai
rv al
ueoft heassetatt
hedateofcont r
ibuti
on

14.Whi
chofthefol
lowingwoul
dnotbeconsi
der
edachar
act
eri
sti
cofapar
tner
shi
p?
A.Co-
ownershi
pofproper
ty
B.Mutual
agency
C.Unl
i
mi t
edli
abil
it
y
D.Unl
imit
edlif
e

15.Whi
chofthefoll
owingwouldnotbeconsi der
edanadvantageoffor
mingapartner
shi
p?
A.Apart
nershiphasunli
mi tedli
abil
it
y
B.Apart
nershi
piseasil
yf ormed
C.Apart
nershi
pisrelat
ivelyfr
eefrom government
alregul
ati
onsandrest
ri
cti
ons
D.Ski
l
lsandresourcescanbecombi ned

16.Theassetscont
ribut
edbypar t
nersint hepar
tnershi
pbecomet
hecommonpr
oper
tyofal
l
par
tner
s.Thus,
apart
nershi
pischar
acter
izedby__
_____
____
 A.Co-
ownershi
pofpropert
y
B.Co-
owner
shipofpr
ofit
C.Co-
owner
shipofal
lpresentpr
oper
ty
D.Noneoft
heabove

17.Thi
sisachar acter
ist
icofapart
nershi
pwhi
chmakesapar tner'
sactbi
ndingforal
ltheother
par
tner
s,excepti
ncaseswhentheacti
sbeyondt
hescopeofpar
tnershi
poper
ati
ons.Whati
sit?
A.Onerous
B.Consensual
C.Mutualagency
D.Bil
ater
al

18.Par
tner
'sinv
estmentmayincl
udewhichoft
hefol
lowi
ng?
A.Cash
B.Non-CashAssets
C.Non-CashAssetswi
thli
abi
li
ti
estobeassumed
D.Alloftheabov
e

19.Whi
chofthefoll
owingchar
act
eri
sti
csdoesnotappl
ytoagener
alpr
ofessi
onal
par
tner
shi
p?
A.Unl
imit
edl i
fe
B.Mutual
agency
C.Unl
i
mi t
edliabi
li
ty
D.Nobusinessincomet
ax

20.Apart
nershi
pagr eementshoul
dincl
udewhichofthef
oll
owi
ng?
A.Eachpartner'
sduti
es
B.Themet hodofall
ocati
ngprofi
tsandl
osses
C.Thepurposeofthebusiness
D.Alloft
heabov e

21.Apartnershipwhi chcompr i
sesalltheprofi
tsthatt
hepart
ner
smayacqui
rebyt
hei
rwor
kor
i
ndust
ryduri
ngt heexist enceofthepart
nershi
piscall
ed__
___
___
A.Dejurepar t
ner ship
B.Part
icularpartnership
C.Universalpartnershipofprof
it
D.Univ
er salpartnershipofal
lpr
esentpropert
y

22.Par
tner
'scapitalaccountiscredit
edinthefoll
owingcasesexceptwheni
tinv
olv
est
her
ecor
ding
ofthe_
_____
__
A.Additi
onalinvest
ment
B.Ori
ginali
nv estment
C.Shareinthepr of
it
D.Debitbalanceoft hedr
awi ngaccountattheendoftheperi
od

23.Whi
choft hefol
lowingaccount
shasanor
mal
credi
tbal
ance?
A.Loanstopar t
ners
B.Part
ner'scapital
C.Part
ner'sdrawing
D.Duef r
om partner

24.Whi
choft hefol
lowingi
temsisNOTcol
l
ect
ibl
efr
om apar
tner
?
A.Loansreceiv
ablef
rom par
tner
s
 B.Loanstopartner
C.Loansfrom partner
D.Duefrom partner

25.Whati sthebasisofcapit
alshar i
ngifthepar
tner
sdonothav
eanagr
eementast
otheamountof
thei
rindi
vidualcapi
talcont
ri
bution?
A.Equalshare
B.Basedonpr ofi
tandlossagr eement
C.Fairv
alueofassetcont r
ibut
ed
D.Servi
ce

26.Atwhatvaluewi l
lcashcontr
ibut
ionsofapar
tnerber
ecor
dedi
nthepar
tner
shi
pbooks?
A.Fut
ur evalueofcash
B.Purchasingv al
ueofcash
C.Actualamountofcash
D.Pastv al
ueofcash

27.Whati
sthev aluati
onifapartnercontr
ibut
esanon-
cashpr
oper
tyt
othepar
tner
shi
p?
A.Agreedv alueofthepropert
y
B.Acquisi
ti
oncostoft heproperty
C.Actualamountoft hepropert
y
D.Fai
rv al
ueoft hepropert
y

28.Whati
stheent
ryfortheacceptanceofani ndust
ri
alpar
tner
'sski
l
lashi
s/hercont
ri
but
ion?
A.Gener
alj
ournalthroughamemor andum entr
y
B.Gener
all
edgerthroughdebit
-creditentry
C.Gener
alj
ournalthroughdebi
t-creditentr
y
D.Gener
all
edgerthroughamemor andum ent
ry

29.St atement1:Ther eisabonust oapar t nerwhosecapit

alcontr
ibut
ionislesst hant
hecapital
credit
edt ohim.
St
at ement2:I foneofthepartner
s' capi
talcredi
tisnotequalt
otheamountofhi sactualcapi
tal
contri
but i
on,thereisabonust ober ecognized,thati
s,ift
het ot
alpart
ners'capi
talcont
ri
buti
onis
equalt ototalpart
nershi
pcapit
al
A.Onlystatement1iscorr
ect
B.Onlystatement2iscorr
ect.
C.Bothstatementsarecorrect
D.Bothstatementsarenotcorr
ect

30.Forfai
randhonestbusinessf ormat
ionofapar
tner
shi
p,eachpar
tner
'si
nit
iali
nvest
mentofnon-
cashasset
sshouldber ecordedatthei
r___
___
__
A.Bookv al
ues
B.Carry
ingvalues
C.Fairmarketvalues
D.Quotedvalues

31.Thedrawingaccounti sdebi t
ed,exceptfor
A.Withdrawal ofpartnershi
p'sassetsbythepart
ner
B.Partnershi
pobl igationsassumedorpai dbythepart
nershi
p
C.Partner'
sper sonalindebtednesspaidorassumedbythepartner
ship
D.Fundsorcl aimsofpar t
nershipcol
lect
edandretai
nedbythepartner
32.Whi
chofthefoll
owingisdebit
eddir
ectl
ytocapi
tal?
A.Per
manentwi thdr
awal.
B.Par
tner'
sshareinl
osses
C.Par
tner'
sshareinprof
it
s
D.Wit
hdrawalofassetsbythepart
neri
nanti
cipati
onofpar
tner
shi
ppr
ofi
t

33.Jacki nvest
edinapartnershi
paparceloflandwhi chcostshisfather₱200,
000.Thel andhada
marketv al
ueof₱300,000whenJacki nher
it
edi tthr
eey ear
sago.Currentl
y,t
helandisindependentl
y
apprai
sedat₱550, 000ev enthoughJackinsistedthathewoul dn'
ttake₱900,000f orit
.Thel and
shouldber ecor
dedintheaccountsoft
hepartnershi
pat_ __
___
A.₱300,000
B.₱900,000
C.₱550,000
D.₱200,000

34.Ifthe amountofliabi
l
iti
es i
s₱165,000 and the per
centage ofowner
'scl
aim i
nthe t
otal
par
tner
shi
p'sasset
sis45%,thepar
tner
shi
p'st
otalasset
swoul dbe_____
_
A.₱200,
000
B.₱300,000
C.₱366,
667
D.₱255,
750

35.Ift
henetassetsofthepar
tner
shipi
s250,
000andt
het
otalpar
tner
shi
p'
sli
abi
l
ityi
s350,
000,t
he
part
nershi
ptot
alcapi
tal
wouldbe____
___
_
A.₱600,000
B.₱350,000
C.₱250,000
D.₱100,000

36.I
fthetot
alpart
nershi p'
sasset
sincr
easedby12%andt
otalpar
tner
s'equit
yincr
easedt
o₱260,000
andhasanol dbalanceof200, 000.How muchisthechangeinli
abil
it
iesifthenew bal
anceis
₱440,
000?
A.₱15,
000increase
B.₱15,000decr ease
C.₱20,000i
ncr ease
D.₱25,000decr ease

37.Angela,Angeli
caandAndr eaaref ormingapar t
nershi
p.Theappr ai
sedval
ueofasset
scont r
ibuted
i
s ₱60, 000,₱80, 000 and ₱100,000,r espect
ivel
y.In addit
ion,Angela and Andr
ea agreed that
Angeli
ca'sexperiencei sworth₱30, 000.Thepar t
nersdesiret oapplythebonusmet hodwher e
appl
icable.Whatist hetot
alcapi
talrecordedatthedatethepartnershi
pisf
ormed?
A.₱270,000
B.₱240,000
C.₱230,000
D.₱250,000

38.Desi
reeandDeborahcontr
ibut
e₱100,
000casheachwhi
l
eDext
ercont
ri
but
eshi
sski
l
l.Howmuch
i
sthetotalpar
tner
shi
pcapit
al?
A.₱100,000
B.₱200,000
C.₱300,000
D.₱400,000
39.JenniferandJessi
cawil
lcontr
ibut
e₱150,000casheachandJennicawil
lcont
ri
bute₱50,000plus
herski
ll.Theyagreedt
oshareprofi
tat2:
2:1,
respect
ivel
y.Thecor
rectamountoft
hetotalpar
tner
ship
capi
tal
izationwouldbe__
___
A.₱200,000
B.₱370,000
C.₱250,000
D.₱350,000

40.Wal a,AkongandPakef or
medapar tner
shi
pt owhichWalacont r
ibut
edaparceloflandwithan
acquisi
tioncostof₱25,
000;Akongcont
ri
buted₱50,000cashandPake₱75, 000cash.Thelandhasa
fai
rvalueof₱50, 000atthedateoffor
mat i
on.Thetotalcapi
talcr
editofthepar
tnershi
pshouldbe
____
__ _
_
A.₱150,000
B.₱125,000
C.₱175,000
D.₱145,000

41.Pet er
,Pat t
erandPanar eforminganewpar tner
ship.Pet eri
stoinvestcashof₱100,000andacar
repairequipmentor igi
nall
ycost i
ng₱120, 000buthasasecondhandmar ketval
ueof₱50,000.Patt
er
ont heot herhandi st oinvestcashof₱160, 000.Panwhosef amilybusinessisdeal
ingwithacar
repairequipmentt obeusedbyt hepartnershi
pwi t
har egularpr
iceof₱120, 000butwhichcosttheir
family'
sbusiness₱100, 000.Partnersagreedtosharepr of
it
sandl ossesequally
.Whatarethecapital
balancesofpar tnersuponf ormation?
A.Pet er,₱220,000;Patt
er,₱160,000; Pan,₱150,000
B.Pet er,₱150,000;Patter,₱160,000;Pan,₱120, 000
C.Pet er,₱160,000;Patt
er,₱160,000; Pan,₱160,000
D.Pet er,₱176,666;Patter
,₱176,666; Pan,₱176,666

42.Est
radaandMor
enof
ormedapar
tner
shi
ponMar
ch1,
2016andcont
ri
but
edt
hef
oll
owi
ngasset
s:

Est
rada Mor
eno
Cash ₱80,000
Equi
pment ₱50,
000

Theequi
pmentwassubject
edtoachatt
elmor t
gageof10,
000thatwasassumedbyt hepar
tner
ship.
Thepart
nersagreedt
osharepr
ofi
tsandlossesequal
l
y.Moreno'
scapi
talaccountonMarch1,2016
shoul
dbe_____
__
A.₱45,
000
B.₱50,
000
C.₱55,
000
D.₱40,
000

43.OnMar
ch1,2019,JuanandPedr
ofor
medapar
tner
shi
pwi
theachcont
ri
but
ingt
hef
oll
owi
ng
asset
s:

Juan Pedr
o
Cash ₱30,
000 ₱70,
000
Machiner
iesandEqui
pment 25,
000 75,
000
Bui
ldi
ng 225,
000
Fur
nit
ureandFixt
ures 10,
000
Thebuildingissubj
ectofamortgageloanof₱80,000whichistobeassumedbyt hepart
ner
shi
p.The
partner
ship agreementprovi
des thatJuan and Pedr
o share profi
ts and l
osses 30% and 70%,
respecti
vely.OnMarch1,2019,t
hebalancei
nPedr o'
scapit
alaccountshouldbe_____
__
A.₱370,000
B.₱310,000
C.₱280,000
D.₱290,000

44.Usi
ngt hesamei nf
ormati
oninNo.43,exceptthatthemor tgageloanisnotassumedbyt
he
par
tner
ship.OnMarch1,2019,t
hebal
ancei
nPedro'scapi
talaccountshouldbe_
____
___
A.₱370,000
B.₱310,000
C.₱280,000
D.₱290,000

45.DesireeandDeborahstart
edapartner
shi
p.Desi
reecont
ri
butedabui
ldi
ngshepurchased10y ears
agof or100,000.Theaccumul at
eddepreci
ati
onoft hebuil
dingonthedateoff ormati
onoft he
part
nershipis25,000andthefai
rval
ueis110,
000.Forwhatamountwil
lDesi
ree'
scapit
albecredited
onthebooksoft hepartner
shi
p?
A.₱100,000
B.₱75,000
C.₱110,000
D.₱25,000

46.OnOct ober1,2016,St eveadmi tsMar t

inf orani nt
erestinhisbusiness.Ont hi
sdat e,St
eve'
s
capi
tal
accountshowsabal anceof₱180, 000, subjecttothefoll
owingadjustments:
•Prepaidexpensesof₱21, 000andaccr uedexpensesof₱14, 500aretober ecognized
•5% oft he outstanding accountsr eceiv
able ofSt eve amounting to ₱90,000 isto be
recogni
zedasuncol lecti
ble
•Mar t
inistobecr edit
edwi t
h1/ 3interestinthepartnershi
pandi stoinvestcashinadditi
onto
the₱36,000wor t
hofmer chandiseinvent ory
.

Howmuchist
hecashshoul
dMar
ti
ninv
est
?
A.₱95,
000
B.₱55,
000
C.₱91,
000
D.₱36,
000

47.DingandDongagr eedt oinvestequalamountsandsharepr of

it
sandl ossesequal
l
yinthe
par
tnershipwit
hDi nginv esti
ngcashof44,000andmer chandi
sev al
uedat56,000.Dongwil
lal
so
i
nvestat ot
alof100,000includi
ngcashandtheagreedv
aluesofvar
iousasset
sasf ol
l
ows:

Car
ryi
ngVal ue Fai
rMar
ketValue
Account
sReceivable ₱78,000 ₱70,000
Al
lowanceforBadDebts 3,
500 5,
000
I
nventor
y 9,
300 10,
500
Off
iceEqui
pment ,
net 12,
000 8,
000
Account
sPay abl
e 30,
000 30,
000

Whatamountofcashshoul
dDongi
nvestuponf
ormat
ionoft
hepar
tner
shi
p?
A.₱53,
000
B.₱55,
000
 C.₱46,
500
D.₱66,
500

48.Usi
ngthesamedatainNo.47,
wit
haccount
spay
abl
enott
obeassumedbyt
hepar
tner
shi
p,how
muchcashwouldDonginvest
?
A.₱83,
500
B.₱80,
500
C.₱16,
500
D.₱26,
500

Foritems49- 51
Kinginvi
tedI natojoinhim andf or
m apart
nershi
p.Inaagreedt
ojoi
nKingprovi
dedt
hatthefol
l
owi
ng
adjustmentsar etakenupi nthebooksofKing.
•Prepaidexpensesof₱25, 000andaccruedexpensesof₱20,000aretobetakenupint
he
booksofKi ng
•Fai
rv alueofKi ng'
sequipmentis₱10,000hi
gherthanit
scar
ryi
ngvalue
•Mer chandiseInventoryi
stobereducedby₱12,000

Ki
ng'
sCapit
albeforeadj
ust
mentf
ort
heabov
eit
emswas₱450,
000.I
nawi
l
linv
estenoughcasht
o
makeheri
nter
estequalt
o40%.

49.HowmuchisKing'
sadj
ust
edcapi
tal
?
A.₱755,
000
B.₱453,
000
C.₱403,
000
D.₱450,
000

50.Howmuchwi l
lInai
nvestt
ogi
vehera40%i
nter
esti
nthepar
tner
shi
p?
A.₱300,
000
B.₱302,
000
C.₱382,
000
D.₱392,
000

51.Howmuchisthet
otal
agr
eedcapi
tal
wit
hKi
ng'
sadj
ust
edcapi
tal
ast
hebase?
A.₱750,
000
B.₱755,
000
C.₱780,
000
D.₱785,
000

Fori
tems52- 54
JackandJi l
lopenedapartner
shiponMar ch1,2016withJackinvest
ingcashof₱100, 000andLot
i
nheri
tedfrom hispar
entscosti
ng₱300,000.Uponformati
onoft hepartner
shi
p,ithasanassessed
val
ueof₱500, 000fortaxpurposeswhichi s₱50,
000higherthanthemar ketvalue.Jil
lagr
eedto
i
nvestcashtocomeupwi tha50%i nt
erestandshar
eintheprof
itsandlossesofthepartner
shi
p.

52.Howmuchist het
otal
agr
eedcapi
tal
?
A.₱550,
000
B.₱1,
100,000
C.₱1,
000,
000
D.₱1,
150,
000

53.Atwhatamountwi
l
lthel
otber
ecor
dedi
nthebooksoft
hepar
tner
shi
ponMar
ch1,
2016?
 A.₱400,
000
B.₱500,
000
C.₱450,
000
D.₱550,
000

54.Assumingthatt
heLandhasanexi
sti
ngmortgageloanof₱100,
000t hati
stobeassumedbyt
he
part
nershi
p,howmuchcashwouldJi
ll
inv
estenoughtomakehisint
erestequalt
o40%?
A.₱300,000
B.₱400,000
C.₱450,000
D.₱500,000

55.A.Al
cantar
a,B.Bautist
aandC.CastroarenewCPAsandar etoform apart
ner
ship.A.Alcantarais
tocontr
ibutecashof₱50, 000andhercomput erori
ginal
lycost
ing₱60,000buthasasecondhand
val
ueof₱25, 000.B.Bautistaistocontr
ibut
ecashof₱80, 000.C.Castr
o,whosef amilyissel l
ing
computers,i
st ocontr
ibutecashof₱25,000andabr andnew computerpluspri
nterwithar egular
pri
ceinthemar ketat₱60, 000butwhi
chcostt hei
rfamil
y'scomputerdealer
shi
p₱50, 000.Partners
agreedt
oshar eprof
it
sequal ly
.

Whatwouldbethetotali
nit
ial
measur ementbasisoft
heasset
scont
ri
but
edt
othepar
tner
shi
p?
A.Alcant
ara,31%;Bauti
sta,33%,Cast
ro,35%
B.Al
cantara,
32%;Bautist
a,34%;Castr
o,34%
C.Al
cantara,
32%;Bautist
a,31%;Castr
o,37%
D.Al
cantara,
35%;Bautist
a,30%;Castr
o,35%

Forit
ems56-57
PoloandLocoent
eredi
ntoapar
tner
shi
ponAugust1,
2019byi
nvest
ingt
hef
oll
owi
ngasset
s:

Pol
o Loco
Cash ₱400,
000
Inv
entori
es ₱500,
000
Land 1,
100,
000
Buil
ding 750,
000
Equipment 650,
000

Theagr
eementbetweenPoloandLocopr
ovi
dest
hatpr
ofi
tsandl
ossesar
etobedi
vi
ded30%t
oPolo
and70%toLoco,
andt hatt
hepar
tner
shi
pist
oassumethe₱350,
000mort
gagel
oanont
hebui
l
ding

56.HowmuchcashmustLocoi
nvesti
fhei
stor
ecei
veacapi
talcr
edi
tpr
opor
ti
onat
etohi
sshar
ein
prof
iti
nthepar
tner
shi
p?
A.₱130,
000
B.₱135,
000
C.₱140,
000
D.₱145,
000

57.How muchi sthet

otalpar
tner
s'equi
tyi
fLocowoul
dinv
estcashof600,
000i
naddi
ti
ont
othe
aboveasset
sinvest
edandli
abi
li
ti
esassumed?
A.₱3,650,
000
B.₱3,850,
000
C.₱3,750,
000
D.₱3,570,
000
Fori
tems58-59
AsofFebr
uary1,2013,
HeckelandJeckeldeci
dedt
ofor
m apar
tner
shi
p.Thei
rst
atementoff
inanci
al
posi
ti
ononthisdat
eisasf
oll
ows:

Heckel Jeckel
Cash ₱41,000 ₱53,500
AccountsReceivabl
e 425,
000 280,000
MerchandiseInvent
ory 242,500
Proper
ty,PlantandEqui
pment 360,
000 470,000

Tot
al ₱826,
000 ₱1,
046,
000

AccountsPayabl
e ₱150,
000 ₱320,
000
Heckel
,Capit
al 676,
000
Jeckel
,Capi
tal 726,
000

Tot
al ₱826,
000 ₱1,
046,
000

Thepart
nersagreedthatthepropert
ypl
antandequipmentofHeckelandJeckelwereover
val
uedby
₱35,
000and₱60, 000respect
ivel
y.Anal
l
owancef oruncol
lect
ibl
eaccount
sof₱150,000and₱80,
000
shal
lberecogni
zedinthebooksofHeckelandJeckel,
respect
ivel
y.

Thecapit
alcont
ri
but
ionofeachpar
tneri
sthenetamountoft
heasset
scont
ri
but
edt
oandl
i
abi
l
iti
es
takenov
erbythepar
tner
shi
p

58.Whatwoul
dbethet
otal
par
tner
s’equi
tyi
mmedi
atel
yaf
tert
hef
ormat
ionoft
hepar
tner
shi
p?
A.₱1,
077,
000
B.₱1,
087,
000
C.₱1,
090,
000
D.₱1,
187,
000

59.Howmuchcashshoul dHeckeli
nvesti
fthepar
tner
shi
pagreementpr
ovi
desf orcapi
talbalances
proport
ionat
et oprofitandlossshari
ngrati
oof3:2toHeckelandJeckel
,respecti
vel
y,usingt he
adjust
edcapitalofJeckelast
hebase?
A.₱380,000
B.₱388,000
C.₱440,000
D.₱488,000

60.OnAugust1,Archi
eandBertpool
edther esour
cesofthei
rbusinessestofor
m apar
tner
shi
p.The
part
ner
shi
pshall
likewi
seassumetheli
abil
i
tiesofthei
rindi
vi
dualbusinesses.

Par
tner
'scapit
alsaretobebasedonnetasset stransf
erredaf
terthefol
lowingadj
ust
ment s:
•Bert
'sinvent
oryistobei ncreasedby₱6, 000
•Anallowancef oruncollecti
bleaccountsof₱2, 000and₱3,000ar etobesetupint hebooks
ofArchieandBer t
,respectiv
ely
•Accountspayableof₱8, 000shouldber ecognizedinArchi
e'sbooks
•Otherassetsof₱12, 000and₱14, 000inAr chi
e'sandBert'
sbooksar et
obewr i
tt
enof f
.

Thei
runadj
ust
edt
ri
albal
ancesshowedt
hef
oll
owi
ngbal
ancesatAugust1:

Ar
chi
e Ber
t
 Asset
s ₱150,000 ₱226,000
Li
abil
i
ties 10,000 69,000

Whatarethecapit
albal
ancesofArchi
eandBer
t,r
espect
ivel
y,i
mmedi
atel
yaf
tert
hef
ormat
ionoft
he
par
tner
ship?
A.₱118,000and₱146,000
B.₱118,
000and₱140, 000
C.₱120,
000and₱146, 000
D.₱129,
000and₱120, 000

Fori
tems61-64
OnJune30,2017,
LaoandYaof
ormedapar
tner
shi
pwi
theachcont
ri
but
ingt
hef
oll
owi
ngasset
s:

Lao Yao
Cash ₱200,000
Inv
entor
ies 120,
000
Equipment 180,
000
LandandBuil
ding ₱2,
200,
000

LandandBui l
dingiscur r
entl
ymortgagedint
hebankandhasanout
standi
ngbal
anceof800,
000.
(Eachquest
ionisindependentfr
om eachot
her
)

61.Howmuchaddi t
ionalcashshouldLaoinv
estt
ogi
vehi
m anequalshar
eint
hepar
tner
shi
pifYao
wil
lpayt
heloanf rom hi
spersonalasset
s?
A.₱850,000
B.₱920,000
C.₱1,700,000
D.₱2,
200,000

62.HowmuchcashshouldLaoinv
esttogivehim anequalshar
einthepar
tner
shi
pifthepar
tner
shi
p
wil
lassumetheoutst
andi
ngbankl
oan?Int
erestpaymenti
supdateduptoJune30,2017?
A.₱450,
000
B.₱900,000
C.₱850,
000
D.₱1,
700,000

63.Howmuchcashshoul dLaoinvesttogivehi
m anequalshar
einthepar
tnershi
pifthepar
tnershi
p
wil
lassumethebankloanwhichi
nterestof10%perannum hadbeenpai
dupt oSeptember30,2017?
A.₱920,000
B.₱850,
000
C.₱1,
700,000
D.₱1,
900,000

64.Ref
err
ingtoNo.63abov
e,howmuchshal
lbet
het
otalpar
tner
s'equi
tyaf
tert
hef
ormat
ionoft
he
part
ner
ship?
A.₱2,840,
000
B.₱2,400,
000
C.₱2,250,
000
D.₱2,350,
000

Fori
tems65-66
Sephor
ainv
itesSandr
atobeapar
tneri
nherbusi
ness.Bef
oreSandr
a'sadmi
ssi
on,t
heyagr
eedt
hat
t
hef
oll
owingadjustmentsaretobetakenupi nthebooksofSephora
•10%ofout standi
ngaccountsr ecei
vabl
eof250,000withrel
atedallowanceof5,
000istobe
recogni
zedasdoubt f
ulaccounts
•Fairmar ketv al
ueofSephor a'sequipmentis80% oft heor i
ginalcostof500,000.No
depreci
ati
onhasy ettoberecognized

Sephor
a'scapit
albef
oreadj
ust
ment
swas450,
000.Sandr
awi
l
linv
estcasht
ohav
ea1/
3int
eresti
n
thepar
tner
ship.

65.HowmuchisSephor
a'sadj
ust
edcapi
tal
bal
ance?
A.₱320,
000
B.₱330,
000
C.₱340,
000
D.₱350,
000

66.Howmuchcashshoul
dSandr
ainv
esti
nthepar
tner
shi
p?
A.₱160,
000
B.₱163,
000
C.₱165,
000
D.₱170,
000

Forit
ems67- 70
OnAugust1,2019,Ral phadmi t
sVilmaf orani nter
estinhisbusiness.Ont hisdate,Ralph'
scapital
accountshowsabal anceof₱250, 000.Ralphagr eedtotheconditi
onofVi lmatoadjustthefoll
owing
accountsonhi sbooksbeforetheformationofthepar t
nershi
p:
•Ralph'soutstandi
ngaccountsr eceivabl
ewer e₱100,000withrelatedal
lowancef orbaddebts
of₱10, 000.20%oft herecei
vablewasassessedt obeuncoll
ectible.
•I
nv entoryof₱130,000wasov er
valuedby₱10, 000
•PrepaidRentexpenseof₱24, 000i nthebooksofRal phrepresentsrentalf
orthe3r dquart
er
of2019.
•Oft he₱8,000suppl i
estaken-upinthebooks, only₱3,000wort hofsuppli
eswereact ual
lyon
hand.
•Equipmentwi thnetcarryi
ngvalueof₱180, 000isunderdepreciatedby₱10,000

Asidefrom theaboveaccount
s,Ral
phhas₱150, 000cashinbank.RalphandVilmaagreedtohavea
tot
alpar tner
s'equit
yof₱1, 200,
000 and thei
rprofi
tand l
ossshar ing r
ati
o of2:1.Both would
contr
ibuteaddit
ionalcasht
omaket hei
rint
eresti
nthepar
tner
shipproport
ionat
etotheprof
itandloss
shari
ngr ati
o.

67.Howmuchisthet
otal
assetcont
ri
but
edbyRal
phaf
teradj
ust
ment
?
A.₱530,
000
B.₱535,
000
C.₱539,
000
D.₱545,
000

68.HowmuchisthePr
epai
dRentaf
teradj
ust
ment
?
A.₱8,
000
B.₱16,
000
C.₱24,
000
D.₱32,
000

69.Howmuchi
stheadj
ust
edcapi
tal
ofRal
ph?
 A.₱207,
000
B.₱210,
000
C.₱220,
000
D.₱250,
000

70.Howmuchisthecashcont
ri
but
edbyVi
l
ma?
A.₱400,
000
B.₱500,
000
C.₱700,
000
D.₱800,
000

Forit
ems71-75
B.Gowantstoexpandhisexi
sti
ngbusinessBGCompany .Togener
ateaddi
tionalcapi
tal
,heinvi
tedC.
Sytoform apar
tnershi
p.Mr.Syagreedtoinvestenoughcashinordertohav ea40%i nter
estinthe
part
nershi
p.Bef
oret hefor
mationoft hepar
t ner
ship,BG Companyhadt hef ol
lowi
ngassetswi th
200,
000account
spay abl
etobeassumedbyt hepar t
nershi
p.

Cash ₱100,000
AccountsReceivable 350,000
Inv
entor
ies 480,000
Equipment 280,000
AccumulatedDepr eci
ati
on-Equi
pment (40,
000)
LandandBui l
ding 2,400,000
AccumulatedDepr eci
ati
on-LandandBui
l
ding (500,000)

Tot
alAsset
s ₱3,
070,
000

B.GoandC.Syagr eedtothefoll
owingadjustment
sonBGCompany 'saccounts:
•5% oft he accountsr ecei
vabl
ei sconsidered wort
hlessand t o be wri
tt
en-
offand t
he
remainingaccountsisestimatedtobe90%col l
ecti
ble
•Inv
entoriesistobev al
uedat₱380, 000
•Afterappraisal
,l
andandbui l
dingwasgivenanappr ai
sedv al
ueof₱2,100,000

71.Howmuchistheadj
ust
edal
l
owancef
orbaddebt
sofB.
Go?
A.₱30,
500
B.₱33,
250
C.₱34,
350
D.₱35,
150

72.Howmuchisthecapi
tal
ofB.
Gobef
oreadj
ust
ment
s?
A.₱2,
135,
000
B.₱2,
385,
000
C.₱2,
450,
000
D.₱2,
870,
000

73.Howmuchisthecapi
tal
ofB.Goaf
teradj
ust
ment
s?
A.₱2,
919,
250
B.₱2,
912,
570
C.₱2,
925,
560
D.₱2,
990,
000

74.Howmuchi
sthet
otal
asset
sofB.Goaf
teradj
ust
ment
s?
 A.₱3,
200,
000
B.₱3,
119,
250
C.₱3,
220,
500
D.₱3,
450,
000

75.Howmuchisthecashcont
ri
but
edbyC.Syt
othepar
tner
shi
p?
A.₱2,
079,
500
B.₱2,
080,
500
C.₱2,
085,
550
D.₱2,
125,
000

76.AbelandCai nfor
medapar t
nershi
pandagr eedtodivi
deini
tialcapi
talequal
l
y.Abelcont
ri
but
ed
₱200,000andCai ncontr
ibuted₱180,000inidenti
fi
abl
eassets.Underbonusmet hodt
oadjustt
he
capi
talaccounts,
Abel
'scapit
alaccountsshoul
dbedebitedfor__
__ _
__
A.₱20,000
B.₱10,000
C.₱30,000
D.₱50,000

77.Mat t
eoandSar ahformedapar t
nershi
pandagr eedtohaveanequalinteresti
nthepart
ner
ship'
s
assets.Theyagreedt omaket hefoll
owingcontri
buti
ons:Matteocontr
ibuted₱100,000andSarah
contr
ibuted₱84,000inident
if
iabl
eassets.Underbonusapproach,whati
stheamountofbonusf r
om
MatteotoSar ahcapi
tal
?
A.₱46,000
B.₱16,000
C.₱8,000
D.₱23,000

78.Ri
chardandRay mondagr
eedtoform apar
tnershipwithagr
eedcapi
tal
i
zat
ionof₱300,
000wit
h
Raymondcontr
ibut
ing1/3oft
hetot
alagr
eedcapit
alizat
ion.Howmuchshoul
dRichar
dcont
ri
but
e?
A.₱200,
000
B.₱150,
000
C.₱100,
000
D.₱50,
000

79.Hannahi stheownerofanexisti
ngsingl
epropri
etor
shipwit
hnetassetsof₱50,000.Theyagreed
torecor dtheassetsandliabi
l
iti
esofHannah'sbusi
nessatbookv al
ue.Thebookv alueofHannah's
businessl i
abili
tyis₱60,000.HarryandHar ol
dwi llcont
ri
buteequall
yincash60% oft hetot al
capital
izati
onbasedont hecapitalcont
ri
buti
onofHannah.Thecapitalcont
ri
buti
onofHar ryshould
be__ __
_ __
_
A.₱37, 500
B.₱35, 000
C.₱82, 500
D.₱90, 000

80.Roxanneisanownerofasol epr
opr
iet
orshipwi t
hnetasset satbookvalueof₱100,000.Rochel
l
e
i
salsoasol epropr
ietorwit
hnetassetsatbookv alueof₱200, 000.ThenetassetsofRoxanneand
Rochel
learetobet akenbyt hepart
ner
shipatt heirrespect
ivebookv al
ue.Rachel
leistocontri
but
e
cashequalto1/ 2oft hetotalagr
eedcapital
izationbasedont hecont
ribut
ionofRoxanneand
Rochel
le.

TheamountofRachel
l
e'scashcont
ri
but
ionshoul
dbe_
___
___
 A.₱100,
000
B.₱150,
000
C.₱200,
000
D.₱300,
000

CHAPTER2: PARTNERSHI POPERATI ON

1.Intheabsenceofanagr eement,t
heshar
eofeachpar
tneri
nthepr
ofi
tsandl
ossesshal
lbei
n
accor
dancewi t
hthe_____
A.Equall
y
B.Ori
ginalcapi
talcontri
buti
on
C.Averagecapit
albalance
D.Endi
ngcapi t
albalance

2.TheAandBpar t
nershipagr
eementprovi
desforAtoreceiv
ea20%onpr ofi
tsbeforethebonus.
Remaini
ngprof
it
sandl ossesaredi
vi
dedbetweenAandBi nt herat
ioof1:3,respect
ivel
y.Whi
ch
par
tnerhasagr
eateradv ant
agewhenthepar
tner
shiphasaprofi
torwhenithasaloss?
Profi
t Loss
A. A B
B. A A
C. B B
D. B A

3.Whatref
erstotheregularadv
ancesmadebyt
hepar
tner
sinant
ici
pat
ionoft
hei
rshar
einpr
ofi
t?
A.Temporarywithdrawals
B.Permanentwithdrawal
s
C.Owner'
scapital
D.Owner'
sdrawing

4.Whyisitgeneral
professi
onalpartner
shi
pexempt
edfrom 30%i
ncometax?
A.Becauseitismandatedbyt helaw
B.Becauseindiv
idualpartner
sunderGPPshal
lbetheonewhoaresubj
ect
edf
ori
ncomet
axi
n
thei
rseparat
eandi ndi
vidualcapaci
ti
es
C.BothAandB
D.NeitherAandB

5.Theart
icl
esofco- par
tner
shi
pshouldmakeclearal
loft
hef
oll
owi
ngpoi
nts,
except_
___
___
_
A.Proceduresforadmit
ti
ngnewpar t
ner
s
B.Profi
t-
sharingrat
io
C.Taxespai dbythepart
nership
D.Withdrawalsall
owedtopartner
s

6.Thefol
l
owingar eopti
onsav ai
labl
efordet
ermi
ningthepar
tner
s'shar
einpr
ofi
texceptwhi
choft
he
fol
lowi
ng?
A.Capit
alcontri
but
ion
B.Capi
talcontri
but
ionandser vi
cetot
hepartner
shi
p
C.Loanstot hepart
nership
D.Stat
edfracti
onorratio

7.Par
tner
shipfinancialst
atementsar
emuchl
i
ket
hoseof_
___
___
A.Personalfinanci
alstat
ements
B.Not-f
or-profi
torgani
zati
on
C.Propri
etorship
 D.Cor
por
ati
ons

8.ThepartnershipagreementofSant osandCr uzprovi

desforsalaryall
owancesof₱45, 000to
Sant
osand₱35, 000toCr uz,withtheremai
ningprof
itorl
osstobedi v
idedequal
ly.Duri
ngtheyear,
Sant
osandCr uzeachwi t
hdr ewcashequalto80%oft hei
rsal
aryal
l
owances.Ifpartner
shipprof
iti
s
₱100,
000,Santos'equityi
nt hepartner
shi
pwould______
_
A.Decreasemor ethanCr uz
B.Decreaset hesameasCr uz
C.I
ncreasemor ethanCr uz
D.I
ncreaset hesameasCr uz

9.PartnersDesi reeandDebor ahsharepr ofi

tandl ossequal lyaf t
ereachhasbeencr edi
tedwit
h
annualsalar
yal l
owancesof₱160, 000and₱140, 000, respect
ively
.Underthisagreement
,Desi
reewi
ll
benefi
tby₱20, 000mor ethanDeborahinwhi chofthef oll
owingcircumstances?
A.I
nal learningsorlosssi
tuati
ons
B.Onlyifthepartnershi
pdoesnoti ncuralossf ortheyear
C.Onlyifthepartnershi
phasearningsof300, 000ormor efortheyear
D.Onlyifthepartnershi
phasearningsofatl east20,000f ortheyear

10.I
napartnershi
p,par
tners'salar
iesar
econsi
der
edas_
___
___
A.Aliabi
li
ty
B.Aloss
C.Anal l
ocati
onofpr ofi
tsandlosses
D.Anexpenseoft hebusiness

11.Whichofthef oll
owingprof
itandl ossallocati
onmet hodsful
l
ydi
sregar
dstheser
vicer
ender
edby
thepar
tneri
nt hepar t
nershi
pandt hecapitalcontri
buti
onmadebyeachpartner
?
A.Bonusal lowancetopartners;bal
ancei nagreedrati
o
B.Equally
C.Int
erestal l
owancetopartners;balanceinagreedrati
o
D.Salar
yal l
owancet opart
ners; bal
ancei nagreedrati
o

12.Cl
osingentriesofapar t
nershi
pincludeent r
iesto_____
_ _
_
A.Closet heincomesummar yanddividendsdeclaredaccountstoret
ainedearni
ngs
B.Closei ncomeandexpenseaccount st otheincomesummar yaccountandt hencl
oset
he
i
ncomesummar yaccountbal ancetot hepartners'
drawingaccounts
C.Eliminatecapi talaccountsandr ecordt hedistr
ibuti
onofassetstopartnerstoeff
ectt
he
part
nershi pter
mi nati
onandl i
quidati
on
D.Recor ddistr
ibutionofcasht opart
ner s

13.Ifthepartnershipdoesnotspecif
yhowpr ofi
tistobeall
ocatedtothepar
tners,
prof
it
sandl
osses
shouldbeallocated
A.Equally
B.Equitablysothatpart
nersarewellcompensatedfortheirt
imeandeffor
t
C.Inaccor dancewiththei
rcapit
alcont r
ibut
ion
D.Inpropor t
iontotheaver
agecapitali
nv est
edduri
ngtheper i
od

14.Whichoft hefol
lowingbestdescri
best henatureofallowancesforsalar
iesandinter
estina
par
tner
shipprofi
tandlossshar
ingagr
eement ?
A.Theyaremeansofdet er
mini
ngr easonabl
emont hl
ywithdrawal
scbyeachpart
ner
B.Theyaremeansofdi stri
but
ingpr of
itinr
elati
ontoser v
icesrender
edandcapitali
nvest
ed
bypart
ners
 C.Theyaretr
eat
edasexpensesofthebusinessthatshoul
dbedeductedfr
om rev
enuei
n
det
ermini
ngpr
ofi
t
D.Theyar
eamountsuponwhi
cheachpar
tnerwil
lhavetopayper
sonal
incometax

15.Inordertoarriveatanequi tablemannerofdi stri

but
ingprof
it
sandl
osses,anyoral
loft
he
fol
l
owingfactor
smaybet akenint
oconsi derat
ion,except_ _
___
A.Amountofcapi t
alcontri
butedbyt hepart
ner s
B.Numberofdependentchi l
drenoft hepartners
C.Servi
cerenderedtothepartnershipbythepar t
ners
D.Skil
l
soft hepart
nersthatareneededi nrunni ngthepart
ner
ship

16.St atement1:Whent hepar tnershipagreementspeci f

ical
lyprov
idesf orsalar
iesandint
erest,the
provisionmustbeappl i
edbef oretheremai nderofprofi
torlossisdi
vided
Statement2: Thepar tnershippr of
iti
sdi vi
dedinproporti
onineachpar tner'
scapit
alequi
tyi
nterest,
unlesst hepart
ner shipcontractspeci f
ical
lyindicat
esthemannerofdi vi
dingt heprof
it
A.Onl
ystat ement1i scorrect
B.Onl
ystat ement2i scor rect
C.Bothstat ementsar ecor rect
D.Bothstatement sar eincorrect

17.Statement1: Anindust
ri
alpartnerisexemptfr
om sharingi
npartnershi
plosses
St
atement2:Sal ari
estopartnersandinter
estonpartners'
capi
talsareaccount
edf
orasexpenses
ofthepartnershi
p
A.Onlystatement1iscor r
ect
B.Onlystatement2iscorrect
C.Bothstatementsarecorrect
D.Bothstatementsareincorrect

18.Statement1:Anysal aryallowancesst i
pulat
edi nt
hepartnershi
pagreementareconsi
deredonlyi
f
profi
tissuffi
cientt ocoversuchal lowance
Statement2:I tisnecessar ytosetupadr awingaccountfortheindust
ri
alpar
tnerf
orthepurpose
ofrecordinghis/hershareint hepr ofitsofthepartner
shi
p
A.Onlystat ement1i scor r
ect
B.Onlyst atement2i scor rect
C.Bothst atementsar ecorr ect
D.Bothst atementsar eincor rect

19.St
atement1:Apar t
nershi
pisnotsubj ectf
ori
ncometax
St
atement2:Thereisabonusal lowancetopar
tner
/si
fthepar
tner
shi
pincur
redl
osses
A.Onlyst
atement1i scorrect
B.Onlyst
atement2i scorr
ect
C.Bothst
atement sarecorrect
D.Bothstatementsareincorrect

20.Statement1:Whenbeginningcapitalbal
ancesareused,
addit
ionali
nvestmentdur
ingt
heyearare
di
scouragedbecausemaki ngsuchi nvestmentsar
enotcompensatedint hediv
isi
onofpr
ofi
tsinthe
nextyear
Statement2:Whenav eragecapitalareused,i
nvest
mentsandwi t
hdrawalsmadeduri
ngtheyear
areencouraged
A.Onlyst
atement1iscorrect
B.Onlyst
atement2iscorrect
C.Bothstat
ementsar ecorr
ect
 D.Bot
hst
atement
sar
eincor
rect

Forit
ems21-22
Thefoll
owingaccountbal
ancesf
ort
hepar
tner
shi
pofDesi
ree,Debor
ahandDext
erwer
etakenf
rom
thebooksonOctober1,2013.

Assets ₱500,
000
Li
abiliti
es 200,
000
Desi
r ee,Capit
al 120,
000
Debor ah,Capi
tal 95,
000
Dexter,Capit
al 85,
000

Thepart
nersagreedtodistri
buteprofi
tsasfoll
ows:
•Annualsalar
iestoDesi r
eeandDebor ahof₱5,000each
•Annuali
nterestof5%onbegi nningcapital
•Bonusof15%t oDesireebasedonprofitaft
ersal
ari
es,
int
erestandbonus
•Remainingprofi
t:25%t oDesir
ee,35%t oDeborahand40%toDexter

Thepart
nershi
pbeganit
soperat
ionsonOct
ober1,2013andpr
ofi
tfort
het
hreemont
hsended
December31,2013i
s₱69,
500

21.Whi
chofthef oll
owingisTRUE?
A.Thebonust oDesireeis₱5,804
B.Prof
itaft
ersalari
es,i
nter
estandbonusis₱38, 696
C.Deborah'sshareinprofi
tis₱21,688
D.Dexter
'sshareinprofi
taft
ersalari
es,
int
erestandbonusi
s₱13,
534

22.Howmuchisequi
tybal
anceofDebor
ahonDecember31,
2013?
A.₱116,
688
B.₱123,
455
C.₱132,
450
D.₱147,
235

23.LSandGM arepartner
sofBMGPartnershi
p,whi
chbegani
tsoper
ati
onsonJune1,
2013wi
tht
he
fol
lowi
ngcapi
tal
balances:
LS,Capit
al ₱1,
440,000
GM, Capi
tal 720,000

Accordingtothepartner
shipagreement,all
prof
it
sandl osseswil
lbedist
ri
butedasf
oll
ows:
•LSwi l
lbeal l
owanannualsal aryof₱960,000whi l
eGM willbeall
owedamont hlysal
aryof
₱112,000
•Thepartnerswil
lbeallowedinter
estequalto15%oft hecapit
albal
anceasofthefir
stdayof
theyear.
•GM will
beal l
owedabonusof12%ofpr ofitaf
terbonus
•Theremainderwill
bedi vi
dedequally
•Eachpar t
nerisall
owedt owithdrawupt o₱72,000during2013andupt o₱96,000peryear
fory
ears2014t hr
ough2017

Thepar t
nershi
poperat
ionsresul
tedi
npr of
itof₱560,000f
ortheremai
nderof2013andlossof
₱280,000fortheyear2014.Eachpar
tnerwithdr
ew t
hemaximum amountf
rom t
hebusi
nesseach
per
iod.
Whichofthef
oll
owingstat
ementsiscorr
ect?
A.Thecapit
albal
anceofLSatt heendof2014is₱1, 242,
925
B.TheshareofGM i
nt henetl
ossin2014i
sacr edittocapi
talaccountof₱14,575
C.Ther
ei sanetincreaseof₱97,500inthecapit
alaccountofLSf rom begi
nni
ngt
oendof
2013
D.Thecapit
albal
anceofGM attheendoffir
styearis₱1,038,
500

24.Thepartnershi
pofD,TandIwasf ormedonJanuar y1,2013.Theori
ginalinv
estmentswereas
fol
l
ows:D, ₱240,000;T,₱360,000;I,
₱540,000.Accor di
ngtothepartner
shi
pagr eement,
profi
torl
oss
wil
lbedi
videdamongt herespecti
vepartnersasf ol
l
ows:
•Salari
esof₱80, 000forD,₱70,000f orTand₱48, 000forI
•I
nterestof9%ont heori
ginalcapit
albalanceforeachpart
ner
•Remai nderi
sdi vi
dedequall
y

Howmuchwasthepar
tner
shi
plossi
fI'
sshar
einl
osswas₱39,
600?
A.₱108,
000
B.₱129,
600
C.₱136,
200
D.₱171,
000

Forit
ems25- 26
OnJanuar y1,2013,Tommy ,JasonandKimberlyf
ormedapart
nershipwit
hTommyasani ndust
ri
al
part
ner.JasonandKi mber
lycontr
ibut
ingcashof₱400,
000and₱600,000,r
espect
ivel
y.Theyagreeto
di
videprofi
tsintherati
oof2:4:
3toTommy ,JasonandKi
mberl
y,r
especti
vel
y

Theoper
ati
onsoft
hepar
tner
shi
pfort
hey
ear2013r
esul
tedi
nthel
ossof₱240,
000.

25.Howmuchistheshar
eofJasonandKi
mber
lyi
nthepar
tner
shi
ploss?
A.₱137,
143and₱102,
857
B.₱80,
000and₱160,
000
C.₱96,
000and₱144,
000
D.₱120,
000and₱120,
000

26.Whatwouldbetheequi
tybalanceofJasonandKi
mber
lyf
ort
hey
ear2013?
A.₱304,000and₱456,
000
B.₱262,857and₱497,143
C.₱280,000and₱480,
000
D.₱340,000and₱440,
000

Forit
ems27- 28
AngelaandNi cksf ormedapar t
nershi
ponJanuar
y1,2014.Theyagr eedtodiv
idet
hepr
ofi
torloss
accordingtot
hef oll
owi ngassumptions:
•Annualsalaryallowanceof₱100,000t
oAngel
aand₱85, 000toNicks
•Bonusof20% and30% i sgiventoAngel
aandNi cks,respecti
vel
ybasedonprof
itaft
er
deduct
ingall bonuses
•Remainderist obedividedequall
y

Thepar
tner
shi
poper
ati
onsf
ort
hey
ear2014r
esul
tedi
napr
ofi
tof₱300,
000

27.HowmuchisthebonustoAngel
aandNi
cks,
respect
ivel
y?
A.₱50,
000and₱70,000
B.₱70,
000and₱80,000
 C.₱30,
000and₱40,
000
D.₱40,
000and₱60,
000

28.Howmuchistheshar
eofAngel
ainpr
ofi
t?
A.₱152,
500
B.₱147,
500
C.₱134,
500
D.₱142,
000

29.Initsfi
rstyearofoper
ati
on,RandSCompany ,apartner
shi
p,madeaprof
itof₱270,000befor
e
provi
dingforsalar
iesof₱75,
000and₱60,000perannum f orRi
chmondandSamuel
,respect
ivel
yas
sti
pulatedi
nthepar t
ner
shi
pagreement
.Capit
alcontr
ibut
ionsareasf
oll
ows:

Ri
chmond ₱45,
000
Samuel 30,
000
Tyr
on 15,
000
Tot
al ₱90,
000

Ther
eisnost i
pulat
ionastothedi
vi
sionofpr
ofi
torl
ossandt
her
ehasnochangei
nthecapi
tal
cont
ri
but
ionsduri
ngtheyear

Whatwouldbet
herespect
iveshar
esofRichmond,Samuel andTy r
oni
nthepr
ofi
t?
A.Ri
chmond,₱142,
500;Samuel,
₱105, 000andTyron,₱22,500
B.Ri
chmond,
₱135,000;Samuel
,₱67,500andTyron₱67, 500
C.Ri
chmond,₱90,
000;Samuel
,₱90,000andTyron,₱90,000
D.Ri
chmond,₱180,
000;Samuel
,₱45,000andTyron,₱45,000

30.Hei diand Ingri

d are part
ner
s agreeing t
o al
l
ow monthl
y salar
ies (
₱15,000 and ₱10,000,
respecti
vel
y),6% inter
estont hecapi
talinvest
mentatthebegi
nningoft heyear(₱650, 000and
₱350,000,respect
ively
.Theremaini
ngpr ofi
tistobeshar
edequal
ly.Part
nershi
poper at
ionsduri
ng
thefir
styearresul
tedinaprofi
tof₱350,
000.

Whatwouldbet her
espect
ivesharesofHei
diandI
ngr
idi
nthi
spr
ofi
t?
A.₱175,
000and₱175, 000
B.₱214,000and₱136, 000
C.₱233,
333and₱116, 667
D.₱262,
500and₱87, 500

31.Angel
aandBiancaformedapartner
ship.Thepart
nershi
pagr
eementsti
pul
atest
hef
oll
owi
ng:
•Annual
salaryal
lowanceof₱80,000forAngel
aand₱40,000f
orBianca
•Thepart
nersshareinpr
ofi
tsandlossesequall
y

Thepart
ner
shi
pearnedpr
ofi
tof₱100,
000.Howmuchi
stheshar
eofBi
anca?
A.₱70,
000
B.₱30,
000
C.₱48,
000
D.₱52,
000

32.Ci
araandDianaf ormedapartner
shi
p.Thepar t
nershi
pagreementstipulat
est
hef
oll
owi
ng:
•Annual
sal aryall
owancesof₱10,
000f orCiar
aand₱40, 000forDiana
•BonustoCi araof10%oftheprof
itaft
ersalar
iesbutbeforebonus
•Thepartnersshareprof
it
sona60: 40rati
o
Dur
ingtheperiod,t
hepart
ner shi
pincur
redalossof₱20,
000bef
orededuct
ionf
orsal
ari
es.Bywhat
amountdidDiana'
scapi
talaccountchange?
A.I
ncreasedby₱12, 000
B.Decreasedby₱12,000
C.I
ncreasedby₱32,000
D.I
ncreasedby₱32,000

33.El
i
seandFr ancineformedapartner
ship.Thepartnershi
pagr eementsti
pulatesthef
oll
owi
ng:
•Annualsalaryall
owancesof₱10,000f orEl
i
seand₱40, 000forFranci
ne
•Bonust oEli
seof10%oft heprofi
taftersal
ari
esbutbef orebonusandi nter
est
•I
nterestof12%ont hebeginni
ngcapitalbal
anceofFr ancine
•Thepar t
nersshareprof
it
sandl ossesona60: 40rati
o

Duri
ngtheperi
od, t
hepart
ner
shi
pearnedpr
ofi
tof₱200,
000befor
ededuct
ionf
orsal
ari
es.Fr
anci
ne'
s
begi
nni
ngcapit
al bal
ancewas₱60,
000.Howmuchistheshar
eofEli
sei
nthepr
ofi
t?
A.₱101,680
B.₱98,
320
C.₱110,
820
D.₱96,
720

34.Gi
l
bertandHerbertformedapartner
ship.Thepar
tner
shipagreementst
ipul
atest
hef
oll
owi
ng:
•Fi
rst,
Gil
bertshall
recei
ve2%ofpr ofi
tupto₱200,000and5%ov er₱200,
000
•Second,
Her ber
tshallr
ecei
ve1%oft heremai
ningprof
itover₱200,
000
•Anyremaindershall
besharedequally

Dur
ingt
hey
ear
,thepar
tner
shi
pear
nedapr
ofi
tof₱500,
000

Howmuchistheshar
eofGi
l
ber
tint
hepr
ofi
t?
A.₱258,000
B.₱268,885
C.₱242,000
D.₱241,905

35.Isabell
e,Jechell
eandKr i
stel
l
ef or
medapar t
nershi
p.Thepartner
shipagreementst
ipul
atest
he
fol
l
owi ng:
•Annualsalaryal
lowancesof₱100, 000forIsabel
l
eand₱20, 000forJechel
l
e
•10%interestonthebeginningcapi
talbalanceofKri
stel
l
e
•Thepartnersshareinprofi
tsandlossesona40: 40:
20rati
o.

Thepart
nershipearnedaprofi
tof₱500,
000.Kr
ist
ell
e'
scapit
alaccounthadabegi
nni
ngbal
anceof
₱300,
000.Thediff
erencebet
weentheamountsr
eceiv
edbyIsabel
leandJechel
l
eis_
___
___
_
A.₱160,000
B.₱240,000
C.₱80,000
D.₱60,000

36.Li
ezel
andMi chel
lef
ormedapar tner
ship.Thepartner
shi
pagreementst
ipul
atest
hef
oll
owi
ng:
•Annual
salaryal
lowancesof₱80,000f orLi
ezeland₱40,
000forMichel
l
e
•Thepart
nersshareinprof
it
sandl ossesequall
y

Thepar
tner
shi
pear
nedpr
ofi
tof₱100,
000af
tersal
ari
es.Howmuchi
stheshar
eofMi
chel
l
e?
 A.₱70,
000
B.₱30,
000
C.₱130,
000
D.₱90,
000

37.NandingandOny okfor
medapar t
nershi
p.Thepartner
shi
pagr
eementsti
pul
atesthef
oll
owing:
•Mont hlysalar
yall
owancesof₱10,000forNandingand₱4,000forOnyok.Thesal
ariesar
e
recognizedasexpenses
•Thepar tner
sshareequal
l
yinprofi
tsandlosses

Thepart
ner
shipearnedpr
ofi
tof₱360,
000.Howmuchi
stheshar
eofNandi
ng?
A.₱300,000
B.₱228,
000
C.₱148,
000
D.₱128,
000

38.PedroandQuennieshar
eequall
yinthepart
nershi
ppr of
it
sandlosses.Duri
ngtheyear
,Pedr
o's
capi
talaccounthasanetincr
easeof₱50,000.Pedromadecont ri
but
ionsof₱10,000andcapi
tal
wit
hdrawalsof₱60,
000duri
ngthey
ear.Howmuchwast hepart
ner
shipprof
itf
ortheyear
?
A.₱180,000
B.₱200,000
C.₱210,000
D.₱480,000

39.Rachel
l
eandSunshineformedapartnershi
p.Thepartnershi
pagreementstipul
atest
hef
oll
owi
ng:
•Annual
salaryal
lowanceof₱100,000forRachel
le,themanagingpartner
•10%bonustoRachelleaft
ersal
ariesbutbef
orededuct i
onf
ort hebonus
•Thepart
nersshareinprof
it
sandlossesequall
y

TheshareofRachel
l
einthepart
ner
shi
pprofi
tdur
ingt
heper
iodwas₱595,
000i
ncl
udi
ngabonusof
90,
000.Howmuchwast heshar
eofSunshi
ne?
A.₱386,
000
B.₱398,
000
C.₱405,
000
D.₱504,
000

40.Tr
ishaandVanessaf ormedapar t
ner
ship.Thepartner
shipagreementsti
pulatesthef
oll
owi
ng:
•Annualsalaryal
lowancesof₱200,000forTri
shaand₱300, 000forVanessa
•Int
erestof10%basedonbegi nni
ngcapi t
alofVanessa
•Bonust oTri
shaof20%basedonpr ofi
tbefor
edeductingsalar
iesandinterest
•Thepar t
nersshareinprof
it
sandlossesequally

Dur
ingtheyear
,thepart
nershi
pearnedprof
itof₱600,
000.Begi
nni
ngcapi
talbal
anceofVanessawas
90,
000.Howmuchi stheshareofTri
sha?
A.₱323,
500
B.₱294,
500
C.₱334,
500
D.₱305,
500

Fori
tems41-43
Thepart
nershipagr
eementofAiraandAr
isprov
idesthatannuali
nter
estat10%ofaveragecapi
tal
s
shal
lbecredi
tedtoeachpar
tner
;Air
aandAri
sareprov
idedmont hl
ysalar
iesof₱48,
000and₱72,000,
r
espect
ivel
y;bonusat20%ofprof
it
saftersal
ari
es,i
nter
estandbonusshal
lbecr
edi
tedt
oAi
ra;and
r
esi
dualprofi
torlossi
sdi
vi
ded,
60%t oAir
aand40%t oAris.

Thepart
nershi
pstar
tedoper
ati
onsonJul
y1,2014andusesthecalendary
earasi
tsrepor
ti
ngper
iod.
Theprofi
tforthesixmonthsendedDecember31,2014,aft
erinter
estandsal
ari
esamountedto
₱96,
000.

41.I
faver
agecapitalbal
ancesofAi
raandAr
isar
e₱240,
000and₱360,
000,r
espect
ivel
y,howmuch
i
sthebonuscredi
tedtoAira?
A.₱15,
000
B.₱16,
000
C.₱20,
000
D.₱24,
000

42.I
faveragecapi
talbal
ancesofAir
aandAr
isar
e₱100,
000and₱200,
000r
espect
ivel
y,howmuchi
s
thet
otalshar
eofAr i
sinthetot
alpr
ofi
t?
A.₱484,000
B.₱474,000
C.₱454,000
D.₱464,000

43.Ref
err
ingtoNo.42,
whatwast
heor
igi
nal
prof
it
?
A.₱831,000
B.₱834,000
C.₱920,000
D.₱940,000

Foritems44-45
Joy,amanagi ngpartnerofChickandJoyCompanywascr edit
edwi t
hasal aryof₱120,000and
i
nterestof₱60,000onhercapit
alaccountandwaschargedwith₱20,000ashershareofthebalance
i
nt heI ncomeSummar yaccount,af
tertaki
ngpart
ners'sal
ariesandi nt
erestonpart
ners'capital
bal
ancesi nt
oaccount
.Shewi t
hdrew₱140,000dur
ingtheyear
.

44.Whatamountwi
ll
Joyr
epor
ttoBur
eauofI
nter
nal
Rev
enueashershar
eint
hepar
tner
shi
ppr
ofi
t?
A.₱140,
000
B.₱150,
000
C.₱160,
000
D.₱180,
000

45.Howmuchshouldthepart
nershi
prepor
tasJoy
,equi
tyi
nit
sst
atementoff
inanci
alposi
ti
on?
A.₱20,
000
B.₱30,
000
C.₱40,
000
D.Cannotbedet
ermined

Foritems46- 49
I
rishandBenbeganoper at
ionsonMar ch1,2013.Ont hatdat e,I
ri
shi nv
ested₱1,500,000cashand
Beni nv est
edlandandbui l
dingwi t
hf ai
rv al
uesof₱800, 000and₱1, 000,000,r
especti
v el
y.Benal
so
i
nv ested ₱600,000 cash on Nov ember1,2013 t o provide addit
ionalworking capitalfort
he
partnership.Thepartner
shipcont r
actincludesthefol
lowingpr ofi
t-
shari
ngplan.
•Annualsalar
ies:₱180,000(Iri
sh);₱240,000(Ben)
•Annualint
erestonav eragecapitalbal
ance:10%( I
rish);10%(Ben)
 •Remai
nder
:60%(
Ir
ish)
;40%(
Ben)

Theannual
sal
arywast
obewi
thdr
awnbyeachpar
tneri
n12equal
mont
hlyi
nst
all
ment
s.

Duringthefi
scalyearendedFebruary28,2014,I
ri
shandBenhadnetsal esof₱5,000,000,costof
goodssoldof₱2,800,000andtotalsell
i
ngandadministr
ati
veexpensesof₱1,000,
000.Thepartner
s'
salari
eshadbeenr ecordedaspar tofoperat
ingexpenses,andeachpar t
nermademont hl
ycash
drawingsi
naccordancewi t
hthepartner
shi
pcontr
act.(
Ignorei
ncomet axef
fect
s)

46.Howmuchisthecor
rectpr
ofi
toft
hepar
tner
shi
pfort
hef
iscal
yearFebr
uar
y28,
2014?
A.₱1,
200,
000
B.₱1,
620,
000
C.₱1,
250,
000
D.₱1,
630,
000

47.Whati
stheaveragemont
hlycapi
tal
bal
anceofBen?
A.₱800,
000
B.₱1,
000,
000
C.₱1,
400,
000
D.₱2,
000,000

48.Howmuchistotal
shar
eofI
ri
shi
nthepr
ofi
tfort
heper
iod?
A.₱780,
000
B.₱840,
000
C.₱510,
000
D.₱620,
000

49.Howmuchistheequi
tyofBenasofFebr
uar
y28,
2014?
A.₱3,
100,
000
B.₱2,
940,
000
C.₱2,
100,
000
D.₱1,
970,
000

50.SoledadandSt evenf or
medapar tner
shiponJanuar
y1, 2015wi
thSol
edadcontr
ibuti
ng₱180,
000
cashandSt evencont r
ibuti
ngequipmentwi thabookvalueof₱76,
000andaf airv
alueof₱32,000.
Duri
ng2015,St evenmadeaddi t
ionalinv
estment
sof₱16, 000onMarch31and₱16, 000onJune1,
and on August31,he wi t
hdr
ew ₱40, 000.Sol
edad made neit
heraddit
ionalinvest
ments nor
wit
hdrawalsduringthey ear.

Whati
stheav
eragemont
hlycapi
tal
ofSt
evenf
ort
hey
ear2015?
A.₱30,
000
B.₱38,
000
C.₱40,000
D.₱45,
000

Fori
tems51- 54
Lawrence and Angela Joyf ormed a par
tner
ship on January1,2014.On t his date,Lawr ence
cont
ributedcapit
alof₱600, 000.Ontheotherhand,AngelaJoycont r
ibut
ednocapi talbecauseshe
wil
lmanaget hefir
m onf ul
lti
mebasis.Thepart
nershi
pagr eementprovi
desfort
hef oll
owing:
•Capi
talaccountsaretobecredi
tedannuall
ywit
hi nter
estat5%ofthebeginningcapital
•Angel
aJoyi stobepai dasal
aryof₱20,000permont h
•AngelaJoyi stor ecei
veabonusof20% ofpr ofitcomputedbeforei
nterest,salari
esand
 bonusarededuct
ed.
•Prof
it
saretobediv
idedbet
weenLawr
enceandAngel
aJoyi
nther
ati
oof7:
3

Ther
ear eno wit
hdrawal
sbyei
therpar
tnerdur
ingt
hey
ear
.Thepar
tner
shi
pincomest
atement
cont
ainst
hefol
lowing:

Revenues ₱1,
720,
000
Expenses(i
ncl
udi
ngsal
ary
,int
erestandbonus) 840,000
NetProfi
t ₱880,
000

51.Howmuchisthebonust
oAngel
aJoy
?
A.₱287,
500
B.₱275,
250
C.₱250,
500
D.₱295,
000

52.Assumethatthebonusi
sbasedonprof
itcomput
edaf
terbonusbutbef
orei
nter
estandsal
ari
es
arededuct
ed,howmuchisthebonust
oAngelaJoy
?
A.₱191,667
B.₱230,000
C.₱287,500
D.₱240,500

53.Whatwoul
dbetheequi
tybal
anceofLawr
enceaty
ear
-end?
A.₱1,
246,
000
B.₱1,
791,
500
C.₱1,
975,
000
D.₱2,
105,
000

54.Whatwastheadjust
edpr
ofi
t?
A.₱1,
437,500
B.₱1,
434,
750
C.₱1,
457,000
D.₱1,
575,000

55.Arman,BernardandCy rilarepar t
nerswit
hav eragecapi talbalancesi n2013of₱240, 000,
₱120,
000and₱80, 000,
respecti
vely.Par
tner
srecei
ve10%i nterestonthei raver
agecapitalbal
ances.
Sal
ari
esall
owedtoAr manandCy rilis₱60,
000and₱40, 000,
r especti
vely;thebalanceoftheprof
iti
s
tobedivi
dedequal l
y.In2013,t hepartner
shi
psust ai
nedal ossof₱66, 000beforeinter
estand
sal
ari
est
opartners.

Howmuchist
heshareofCy
ril
int
hel
oss.
A.(
₱20,000)
B.(
₱22,000)
C.(
₱25,000)
D.(
₱30,000)

56.Thecapi
tal
account
sofDomeni
candAceatt
heendoft
hey
earf
oll
ow:

Domenic Ace
Debi
t Credit Debi
t Cr
edi
t
Januar
y1 ₱160, 000 ₱240,
000
 March28 180,
000
August1 ₱20,
000
September4 ₱40,
000
October25 80,
000

Thepartner
shi
phadapr of
itof₱120,
000fortheyear.Thepar
tner
shi
pagr
eementpr
ovi
dest
hatt
he
prof
iti
stobedivi
dedaccor
dingt
oaveragecapi
tal
rat
io.

Howmuchist
heshar
eofDomeni
cint
hepr
ofi
tfort
hey
ear
?
A.₱64,
177
B.₱63,
174
C.₱62,
147
D.₱61,
176

57.Part
nersOl i
ver,Patri
ckandRonal dhadav eragecapit
albalancesdur
ingtheyearof₱400,
000,
₱500,
000and₱100, 000,respecti
vel
y .Thepar t
ner shi
pagreementprovi
desforthef
oll
owingdi
vi
sion
ofpr
ofi
tsandl osses
•Int
erest:6%onav eragecapitalbalancesofeachpar tner
•Salar
ies:Oliver
,₱100,000;Patri
ck,₱150, 000andRonal d,
none
•Remai nder:Oli
ver
,20%; Pat
ri
ck, 30%andRonal d,
50%

I
fthet
otal
shar
eofOl
i
veri
nthepr
ofi
tis₱112,
000,
howmuchshoul
dhav
ebeent
hepar
tner
shi
ppr
ofi
t?
A.₱230,
000
B.₱240,
000
C.₱250,
000
D.₱260,
000

58.Desiree,apart
nerinDDSpar tner
shiphasa30%par ti
cipat
ioninpartner
shippr
ofi
tsandl osses.
Desi
ree'scapit
alaccountdecreasedbyanetamountof₱240, 000duri
ngt hecal
endaryear2013.
Duri
ng 2013,Desiree wi
thdrew ₱520,000 whi
ch was charged agai
nsthercapitalaccountand
cont
ributedproper
tytothepar t
nershi
pwi t
haf ai
rval
ueof₱100, 000butwi t
hacar r
yingvalueof
₱80,000.

Whatwastheprof
itoft
heDDSpar
tner
shi
pfor2013?
A.₱500,
000
B.₱600,
000
C.₱700,
000
D.₱800,
000

Fori
tems59-60
MicaandRainarepartnersofMRCompany .Thepart
nershi
pagr eementst
ipul
atest
hef
oll
owi
ng:
•Annualsalar
yallowancesof₱300,
000toMicaand₱400, 000toRain
•Annuali
nterestof8%basedonbeginni
ngcapit
albalancesofMicaandRain
•Remainingprofi
tsorlossesi
stobeshar
edequally

Thepar
tner
shi
poperat
ionsr
esul
tedinapr ofi
tof₱750,
000.Begi
nni
ngcapi
talbal
ancesofMi
caand
Rai
nare₱350,
000and₱450,
000,respect
ivel
y.

59.Howmuchistheshar
eofMi
cai
nthepr
ofi
t?
A.₱321,
000
B.₱429,
000
C.₱520,
000
 D.₱710,
000

60.Assumefur
thert
hatthepart
nershi
pagr
eementst
ipul
atesthatt
hepar
tners'
salari
esandint
erest
shal
lbemadeonlytotheextentthatt
hepr
ofi
tcanprovi
de,whatwoul
dbet herespecti
veshar
esof
MicaandRai
nintheprof
it
?
A.₱321,
000and₱429,000
B.₱321,
875and₱428,125
C.₱187,
500and₱562,500
D.₱250,
000and₱500,000

61.Thepar tner
shipagreementofKierandEmi lprov
idesthatinter
estat10% perannum i
stobe
credi
tedtoeachpar t
neront hebasi
sofwei ght
edav er
agecapitalbal
ances.Asummar yofEmi
l'
s
capit
alaccountfortheyearendedDecember31,2018isasf
ollows:

Bal
ance,January1 ₱280,000
Addi
ti
onalInvest
ment
,June30 160,
000
Wit
hdrawal,Jul
y31 90,
000
Bal
ance,December31 ₱350,000

Whatamountofi
nter
estshoul
dbecr
edi
tedt
oEmi
lfort
hey
ear2018?
A.₱32,
000
B.₱32,
250
C.₱33,
200
D.₱33,
500

62.Ashl
eyandHi l
ari
ear epart
nersinamer chandisi
ngbusiness.Duri
ng2014,theywit
hdr
ew t
heir
sal
aryal
lowancesof₱280,000and₱420, 000,respect
ivel
y.Prof
itsandl
ossesareshar
edinther
ati
o
of3:
2.TheIncomeSummar yaccountbeforeanypr of
ital
locati
onhasacreditbal
anceof₱900,
000.
Thepart
ner'
scapit
alaccount
sshowt hefoll
owing:

Ashl
ey Hi
lari
e
Beginning,
balances ₱700,
000 ₱500, 000
Additi
onalinvest
ments 300,
000 400,000
Withdrawalsothert
hansal
aryal
l
owances (150,
000) (
100,000)
Endingbalance ₱850,
000 ₱800, 000

Whatwouldbet heequi
tybalancesoft
hepar
tner
s'Ashl
eyandHi
l
ari
e,r
espect
ivel
yonDecember31,
2014aft
erdi
vidingt
heprof
it?
A.₱970,000and₱880, 000
B.₱820,000and₱780,000
C.₱920,000and₱870,000
D.₱770,000and₱820,000

63.OnJanuar y2,2019,VinceandLeilaformedapar tnership.Vincecontri

butedcapi
talof₱175, 000
andLeilacontri
buted₱25,000.Theyagr eedtosharepr ofi
tsandl osses80%and20%,r especti
vely
.
Vinceisagener almanagerandwor ksi nthepartner
shipf ullti
meandi sgiv
enamont hlysalar
yof
₱5,000;aninter
estof5%oft hebeginningcapit
alofbothpar t
ners;andbonusof15%t oVi ncebased
onprofitbef
oresalar
ies,
inter
estandbonusar ededucted.

Thei
ncomest
atementoft
hepar
tner
shi
pfort
hey
earendedDecember31,
2019asf
oll
ows:

NetSal
es ₱875,
000
 CostofGoodsSold 700,
000
GrossMargin 175,
000
Expenses(i
ncl
udi
ngsal
ary
,int
erestandbonus) 143,
000
NetProfi
t ₱32,
000

Howmuchist
hebonust
oVi
nce?
A.₱13,
304
B.₱14,
440
C.₱18,
000
D.₱20,
170

64.Whatwillbet hebasisofdi vi
dingpar
tner
shi
plossesi
fthepar
tner
shi
pagr
eementst
ipul
atesonl
y
thedi
vi
sionforprofit
?
A.Profi
t-shari
ngr ati
o
B.Ori
ginalcapitalcontr
ibuti
on
C.Equall
y
D.AverageCapi talbal
ance

65.Whatwi llbethebasisofdiv i
dingt hepart
nershi
ppr ofi
tsiftheagreementst
ipul
atesonl
ythe
di
visi
onforlosses?
A.Basedont heendingcapit
al bal
ancesofcapit
ali
stpartner
s
B.Basedont heorigi
nalcont ri
buti
onofcapi t
ali
stpartnerbutjustandequit
ableshar
efor
industri
alpar
tner
C.Basedont hetimedevotedinmanagi ngthebusiness
D.Basedonav er
agecapi
talbalancesofpartner
s

66.Bonusall
owancetopar
tner/
sisal
lowedonl
ywhent
hepar
tner
shi
pgener
ates_
___
___
___
__
A.Profi
t
B.Loss
C.Profi
tandLoss
D.Dependsontheagreement

67.Whyisanindustr
ialexemptedf r
om absorpti
onofpart
nershi
plosses?
A.Becauseindust r
ialpar
tnercannotwi t
hdrawtheservi
cesr ender
edintheoper
ati
onoft
he
part
ner
ship
B.Becausethelawofpar tner
shi
psay sso
C.Becauseindustri
alpart
nercannotwithdrawanyproper
ti
esoft hepar
tner
shi
p
D.Becauseindustri
alpart
nerisonlyt
askedt omanagethebusiness

68.Thecredi
tbal
anceintheI
ncomeSummar
yaccountr
epr
esent
s__
___
___
A.Profi
t
B.Loss
C.Capit
al
D.Profi
tandLoss

69.Thebal
anceofI ncomeSummar yaccountistransf
erredtothedr
awingaccountsofthepar
tner
s.
Thi
sispossi
ble_______
A.Ifthe par t
ners'intent
ion i
st o keep the capit
alaccountintactforinvest
mentand
per
manentwi thdrawalsofcapit
al
B.I
fthepartners'
intent
ionist
omakepr of
it
sandl ossesaspar
tofpermanentcapit
al
C.I
fthepartners'
intent
ionist
okeeppr ofi
tsandlossaspartoftemporar
ywithdr
awals
D.Al
lofthese
70.ThebalanceofI ncomeSummar yaccountistr
ansferr
eddirectl
ytot he capi
talaccountsofthe
part
ner
s.Thisispossible_____
_ _
_
A.I
ft hepartners'
intent
ionistokeept
hecapitalaccounti
ntactforinv
estmentandper manent
wit
hdr awal
sofcapi t
al
B.I
fthepar tners'
int
entionistomakeprofi
tsandlossesaspar tofpermanentcapital
C.I
fthepar tner
s'int
enti
oni st
okeepprof
itsandlossaspartoftempor ar
ywithdrawals
D.Allofthese

71.I
fthepar t
nersdev oteequalti
mei ntheoper
ationofthepar
tner
shi
p,whati
sthemostequi
tabl
e
wayofdivi
dingpar t
nershi
ppr of
it
?
A.Equally
B.Arbit
raryrati
o
C.Capitalrat
io
D.I
nterestoncapi tal
andbalanceontheagreedrat
io

72.Whichofthef oll
owingmethodsar eprovidedinfullwhethertheprof
iti
sinsuf
fi
cientorsuf
fi
ci
ent
orwhenthereisal oss?
A.Int
erestoncapi t
alandthebalanceont heagreedratio
B.Bonust omanagi ngpart
nerandt hebalanceont heagreedrat
io
C.Salar
yallowancest opart
nersandt hebalanceont heagreedrat
io
D.AandC

73.Thefoll
owingmet hodsofdividingprofi
tsandlossesdoesnotrecognizet
heti
meandef
for
tmay
devot
ebypar t
nersinrunningtheoper ati
onofthepart
nershi
pexceptwhichone?
A.Arbit
raryrat
io
B.Salaryall
owancest opartnersandt hebal
anceont heagr
eedratio
C.Int
erestoncapitalandthebal anceontheagreedrati
o
D.Capitalr
atio

74.Thefoll
owingmet hodsofdi vi
dingprofi
tsandl ossesrecogni
zethedi
ff
erencesi
nthecapi
tal
cont
ri
buti
onsmadebypar tnersexceptwhichone?
A.Averagecapi
talratio
B.I
nterestoncapi
tal andthebalanceontheagr eedrat
io
C.Bonust omanagingpar tnerandthebalanceont heagreedrat
io
D.Endi
ngcapitalr
at i
o

75.InCPABoardExam,t hephrase"sal
ari
es,interestandbonusar erecognizedasexpenses" .Thi
s
meansthat__
___
__
A.Theprofi
tgener atedbyt hefi
rmi salreadyt henetoft hepar t
ners'sal
ari
es,i
nterestand
bonus
B.Thesal
ari
es,interestandbonusaretreatedaspar toftheoperati
ngexpensesofthef i
rm
C.Thesal
ari
es,interestandbonuswillnotbecomemet hodsofallocat
ingprofi
ts
D.Thesalar
ies,interestandbonusar econsi deredast emporarywithdrawal
swhi chwi l
lbe
deduct
edtopartners'equit
yatyear
-end

Forit
ems76-80
Glasi
eandGl ori
earepartner
sengagedi nanexpor
t-i
mpor
tbusi
ness.Sever
alt
ransact
ionsdur
ing
2013aff
ect
edt hepar
tner
'scapit
alaccount
s,whi
char
esummari
zedasfol
lows:

Gl
asi
e Gl
ori
e
Debi
t Cr
edi
t Debi
t Cr
edi
t
 Balance,
Januar
y1 ₱600,
000 ₱800,
000
Mar ch1. ₱100,
000
April1 200,
000
May1 100,
000
June30 ₱150,
000
August31 100,
000
October1 150,
000
October31 125,
000 50,
000

TheI
ncomeSummar
yaccounthasacr
edi
tbal
anceof₱180,
000

76.I
fprofi
tsandlossesar
edi
vi
dedusi
ngt
heav
eragecapi
talr
ati
o,howmuchi
stheshar
eofGl
asi
ein
thepr
ofit
?
A.₱74,483
B.₱74,546
C.₱82,450
D.₱85,120

77.Ifprof
it
sandlossesar
edi
vi
dedusi
ngt
heendi
ngcapi
talr
ati
o,howmuchi
stheshar
eofGl
ori
ein
theprofi
t?
A.₱78,
947
B.₱80,
000
C.₱100,
000
D.₱101,
053

78.Ifprof
it
sandl ossesaredivi
dedusi
ngt hesi
mpleaver
age,whatwouldbetherespect
iveshar
esof
Glasi
eandGl ori
eintheprofi
t?(Assumethattheendi
ngcapi
talbal
anceofGl
oriewas₱850,000)
A.₱74,483and₱105,517
B.₱77,143and₱102,857
C.₱76,696and₱103, 304
D.₱80,000and₱100,000

79.Assumet hatt hepart

nersagreedonthefoll
owing:int
erestonav er
agecapi
talat8%;salar
iesof
24,
000and48, 000toGlasi
eandGl ori
e,r
espect
ivel
y;bonust oGlasi
eat20%ofpr of
itaf
terdeducti
ng
i
nterest,
salar
iesbutbeforededucti
ngbonus;andanyr emainingamountoftheprof
iti
stobedi vi
ded
equall
y.Howmuchi stheshareofGlor
iei
ntheprofi
t?
A.₱68,000
B.₱74,
483
C.₱90,000
D.₱112,000

80.Assumet heagreementsofthepart
nersarethesameasi n(
79)
,exceptthatint
eresti
sequalt
o
12%oft heamountbywhi chtheendi
ngcapit
albalanceexceedst
hebegi
nningbalance.Howmuchis
theshareofGlasiei
ntheprof
it?
A.₱68,
000
B.₱74,
483
C.₱90,
000
D.₱112,000

CHAPTER3: PARTNERSHIPDISSOLUTI
ON( CHANGESINTHEOWNERSHI P) 
1.Whatref
erstothechangeintherel
ati
oncausedbyanypar t
nerceasi
ngtobeassoci
atedi
nthe
car
ryi
ngonasdisti
ngui
shedf
rom thewi
ndingupofthebusi
nessofthepar
tner
shi
p?
 A.Formati
on
B.Operat
ion
C.Dissol
uti
on
D.Li
quidati
on

2.Whi
chofthefoll
owingresul
tsinthedissol
uti
onoft
hepar
tner
shi
p?
A.Admi ssi
onofnewpar tner
B.Wi t
hdrawalorDeathofapartner
C.Incorpor
ati
onofpar t
nershi
p
D.Allofthese

3.Whatref
erstotheamountofcapi
tal
transf
err
edbyonepar
tnert
oanot
herpar
tner
/s?
A.Capit
alCredi
t
B.Bonus
C.Goodwil
l
D.AgreedCapit
al

4.Itreferstoanassetwi t
houtphysi
calsubst
ancerecognizedonl
ywhenanent erpr
isebuy
san
exi
sti
ngent i
tyatpri
cehigherthant
hefai
rval
ueofthenetassetsoft
heacqui
redent
it
y.Whati
sit
?
A.Goodwill
B.Bonus
C.Capit
alCredi
t
D.AgreedCapit
al

5.Itr
eferstotheequi t
yofthepartner
sinthepartner
shipobt
ainedbymul
ti
ply
ingt
het
otalpar
tner
shi
p
capit
albytheappl i
cableper
centageofint
erestofthepart
ner
.Whatisi
t?
A.Goodwi l
l
B.Bonus
C.CapitalCredi
t
D.AgreedCapi t
al

6.Apart
nermaybeadmitt
edinthepart
ner shipbywhichoft
hefol
l
owingway
s?
A.Pur
chaseofI
nter
estfr
om theexistingpar
tners
B.I
nvest
mentofAsset
sinthepartnership
C.Pur
chaseofI
nter
estfr
om theoutsidecredi
torsoft
hepar
tner
shi
p
D.AandB

7.Thi
spri
ncipledictatesthatnoonebecomesapar
tnerwi
thoutt
heconsentofal
lpar
tner
s.Whati
sit
?
A.DelectusPer sonae
B.Egocentrism
C.Double-EntrySystem
D.Debit-
creditformat

8.Thepaymentofnewpar t
nerinpurchasingofi nteresttotheexi sti
ngpar tner
soft
hepar
tner
shi
pis
___
____
___
A.Madepersonall
yanditisnotr ecordedint hebooksoft hepar tner
ship
B.Madepersonall
yanditi
srecor dedinthebooksoft hepar tnership
C.Madefortheint
enti
onofincreasingthet otalpart
ners'equity
D.Madefortheint
enti
onofdecr easingthet otalpar
tners‘equity

9.Whichofthef
oll
owi
ngi
scor
rectr
egar
dingadmi
ssi
onofnew par
tnerbyi
nvest
ingasset
sint
he
par
tnershi
p?
 A.I
nvest
mentofassetsofnewpartnerwi
lli
ncreasetotalassetsandt ot
alpartners’equit
y
B.I
nvest
mentofassetsofnewpart
nerwil
ldecr
easet het ot
alassetsandtotalpart
ners'equit
y
C.I
nvest
mentofassetsofnewpart
nerwil
lnotaffectthetotalasset
sandt otal
partners'equi
ty
D.I
nvestmentofassetsofnew part
nerwil
lresultint heincreaseintheobl i
gationsoft he
par
tner
shi
p

10.I
factual
contr
ibut
ioni
sgreaterthanthecapi
tal
credi
toft
henewpar
tner
,then_
___
___
__
A.Therei
sabonust ooldpar t
ners
B.Therei
snobonust obegi v
en
C.Therei
sabonust onewpar tner
D.Therei
sgoodwil
ltober ecogniz
ed

11.I
factual
contr
ibut
ioni
slessthant hecapit
alcr
edi
toft
henewpar
tner
,then_
___
___
A.Therei
sabonust ool
dpar tners
B.Therei
snobonust obegi v
en
C.Therei
sabonust onewpar tner
D.Therei
sgoodwil
ltober ecognized

12.I
factual
cont
ribut
ioni
sthesameast hecapi
tal
credi
toft
henewpar
tner
,then_
___
___
__
A.Therei
sabonust ool
dpartners
B.Therei
snobonust obegiven
C.Therei
sabonust onewpartner
D.Therei
sgoodwil
ltoberecognized

13.Thefol
l
owi ngaresomer easonsforgr ant
ingabonustonewpart
nerexceptwhi
chone?
A.Extensivebusinessnet wor
koft henewpartner
B.Earningrecordsofanent i
tythatwantstoadmitthenewpart
ner
C.Technicalski
ll
soft henewpar t
ner
D.Vastf i
nanci
al resourcesofthenewpar t
ner

14.Whichofthefoll
owi ngwi
l
lbeusediftheadmi
ssi
onofnewpar
tnerbyi
nvest
ingasset
sdoesnot
haveaprovi
siononwhi chmethodshoul
dbeusedorwhent
hepr
obl
em issi
l
ent?
A.Bonusmet hod
B.Goodwill
met hod
C.Nomet hodtobeused
D.Ei
therAorB

15.Whichofthefoll
owingmet hodscanbeusedt oaccompli
sht hewithdrawalorr
eti
rementofa
par
tner
?
A.Bysel
li
ngtheinter
estofther
eti
ri
ngpar
tnertotheexi
sti
ngpartners
B.Bysel
li
ngtheinter
estofther
eti
ri
ngpar
tnertot
hepartnershi
p
C.Bysel
li
ngtheinter
estofther
eti
ri
ngpar
tnertotheout
sider
D.Al
lofthese

16.Ifthecashtobeset t
ledtor et
iri
ngpar t
nerisgr eatert hantohi s/heractuali
nter
esti
nthe
par
tner
ship,
then___
___
_
A.Theexcessamountwi
l
l betreatedasbonustor emai ningpart
ners
B.Theexcessamountwi
llbetreatedasbonustor eti
ringpartner
C.Theexcessamountwi
l
l berecognizedasgoodwi llofanentity
D.Theexcessamountwi
l
l beusedt osett
let
heliabili
tiesofthepartnershi
p

17.I
fthecasht
obeset
tl
edt
oret
ir
ingpar
tneri
slesst
hant
ohi
s/heract
uali
nter
esti
nthepar
tner
shi
p,
t
hen_
_____
__
A.Theexcessamountwi
llbetreatedasbonustoremaini
ngpartners
B.Theexcessamountwi
l
l betr
eatedasbonustoreti
ri
ngpartner
C.Thedif
ferencewi
l
lber
ecognizedasgoodwill
tothereti
ri
ngpartner
D.Theexcessamountwi
llbeusedt oset
tl
etheli
abi
li
ti
esofthepar t
ner
shi
p

18.Recogni
zingthegoodwi l
ltothereti
ringpart
nerwi l
lresul
tinthe_
____
___
A.Increaseintotalassetsandt otalpar
tners'
equityofthepar
tner
shi
p
B.Increaseinequi t
yoft her et
iri
ngpar t
nersot hatthecashtobesett
ledt
ohi
m wi
llbecome
equaltohis/heract uali
nterestinthepartnershi
p
C.Nochangesi nthet ot
alassetsandpar tner
'sequity
D.Allofthese

19.Account
ingproceduresforsett
li
ngt heinterestoft hedeceasedpartnert
ohi
s/herest
atear
e
si
mil
arto_____
___
A.Account
ingproceduresforthewithdrawalofthepar t
ner
B.Account
ingprocedur
esfortheadmi ssionbyinvestmentofasset
s
C.Account
ingproceduresf
ortheincorporati
onofpar t
nershi
p
D.Account
ingproceduresf
ortheadmi ssionbypurchaseofinter
est

20.Whenthepart
nershipdecidedtoi ncorporat
e, i
tsasset
sandl i
abi
l
iti
es_
___
__
A.Aretr
ansferredi
ntocor porationinexchangeofst ocks
B.Aresol
dtot hestakehol
dersoft hecorporati
on
C.Aresol
dtot heoutsidecreditorsofthecor por
ati
on
D.Aretr
ansfer
redtot hesharehol der
soft hecorpor
ation

21.Whatref
erst otheexcessofcar
ryi
ngamountoft
heassetov
ert
her
ecov
erabl
eamount
?
A.Impairmentofasset s
B.Revaluati
onofassets
C.Purchaseofinterest
D.Capitalcr
edit

22.Whatr eferstotheadjustmentofassetcar
ryi
ngamount
stof
airv
alueswhi
chmayr
esul
tinan
i
ncreaseordecr easeoftheassetv
alue?
A.I
mpai rmentofassets
B.Revaluati
onofassets
C.Purchaseofint
erest
D.Capitalcr
edi
t

23.Anydiff
erencebet weenthecarry
ingamountofcapit
alofthedeceasedorretir
ingpar
tnerandthe
amounttobepai dt osett
lehi
s/herequi
ty__
____
___
A.may i ndicat
et hatsome assets orli
abil
it
ies ofthe part
nership were ov
erval
ued or
underv
alued
B.mayi ndicatethatther
ei sabonust ober ecogni
zedtot heeitherreti
ri
ngorr emai
ning
part
ners
C.mayi ndicatethatt
hereisgoodwi
llt
oberecognizedt
or et
ir
ingpart
ner
D.Allofthese

Fori
tems24-25
Sophi
apurchasedone-hal
fofJay'
sinter
estandshareinprofiti
ntheJayandChr i
spar t
nershi
pby
payi
ngJay180,000.Befor
eSophi
a'sadmissi
on,capi
talbal
ancesofJayandChriswere240,000and
400,
000,
respecti
vel
y.JayandChr
iswereshari
ngprofi
tsandlossesi
ntherat
ioof2:
3,respect
ivel
y.
24.Whatwouldbethecapi
tal
bal
anceofSophi
aimmedi
atel
yaf
terheradmi
ssi
on?
A.₱80,
000
B.₱100,000
C.₱120,000
D.₱150,000

25.Whatwouldbethenewprofi
tandlossrat
iobet
weenJay
,Chr
isandSophi
a,r
espect
ivel
y?
A.Jay,20%;
Chris,
30%;Sophia,50%
B.Jay
,30%;Chri
s,30%;Sophi
a,40%
C.Jay,
20%;Chri
s,40%;Sophi
a,40%
D.Jay,
30%;Chri
s,60%;Sophi
a,10%

26.Thepart
ner
shipagr
eementofDesireeandAdrianpr
ovi
desforequalshar
ingofprof
it
sandlosses.
Pri
ortotheadmissi
onofNicks,
thecapit
alaccountsar
eDesi
ree,150,
000andAdr i
an,210,
000.Nicks
i
nvests180,
000fora150,
000inter
est
.

HowmuchistheAdri
an,
Capi
tal
immedi
atel
yaf
tert
headmi
ssi
onofNi
cks?
A.₱210,000
B.₱220,000
C.₱225,000
D.₱275,000

Foritems27-
28
LucasandMar cos,whoshareprofi
tsandl ossesequall
y,agreet
ot akeJuanintothepartner
shi
pfora
40%shar ei
ncapitalandprof
it
s.LucasandMar cosret
ain30%each.LucasandMar coshavecapi
tal
balancesof100,000and140, 000,respecti
velybeforetheadmi ssionofJuan.Juanpay s120,
000
dir
ectlyt
oLucasandMar cosforhis40%i nt
erest.Al
lassetsofthepar t
ner
ship,exceptl
andarefai
rly
val
ued.

27.Byhowmuchwasl
andunder
val
ued?
A.₱50,
000
B.₱60,
000
C.₱70,
000
D.₱90,
000

28.Whatwouldbethecapi
tal
bal
anceofMar
cosi
mmedi
atel
yaf
tert
headmi
ssi
onofJuan?
A.₱100,000
B.₱102,000
C.₱110,000
D.₱125,000

Forit
ems29- 30
Agnes, Angel
aandAngel i
caarepart nersshar i
ngpr ofit
sintherati
oof3:
3:2,
respect
ivel
y.OnJuly31,
thei
rcapi t
albal
ancesar easf oll
ows:Agnes,₱280, 000;Angel
a,₱200,
000;andAngel i
ca,₱160,
000.
Theyagr eetoadmitAndr eaonthef ollowingconditions:
•AndreaistopayAgnes₱200, 000f or1/2ofAgnes' int
erest
•Andreaistoinvest₱160,000i nt hepartnership
•Someasset soft hepar
tnershi pareunder v
al uedby₱160,000
•Andrea'
sinterestist
obe25%

29.Whatwoul
dbet
het
otal
par
tner
shi
pcapi
tal
immedi
atel
yaf
tert
headmi
ssi
onofAndr
ea?
 A.₱880,
000
B.₱920,
000
C.₱960,
000
D.₱1,
100,000

30.Whatwouldbethecapi
tal
bal
anceofAgnesi
mmedi
atel
yaf
tert
headmi
ssi
onofAndr
ea?
A.₱222,500
B.₱282,500
C.₱312,050
D.₱323,450

Foritems31- 33
PartnersEll
i
e,Ol li
eandMi l
li
eagreedtosellt
oTil
li
eone-f
ourt
hofthei
rrespect
ivecapi
talandprofi
t
andl ossinterestforat ot
alcashpaymentof₱160,000.Thecapi
talbal
ancesandt herespect
ive
percentageinteresti
ntheprof
it
sandlossesimmedi
atel
ybefor
ethesal
etoTil
li
eareasfoll
ows:

Pr
ofi
t/l
oss-shar
ingr
ati
o Capi
talbal
ance
El
l
ie 50% 320,
000
Ol
li
e 30% 180,
000
Mil
li
e 20% 60,
000

31.Whatwouldbethenewpr ofi
tandlossrat
ioElli
e,Oll
i
e,Mi
l
li
eandTi
l
li
e,r
espect
ivel
y?
A.El
li
e,37.5%;
Olli
e,22.5%;Mill
ie,
15%; Til
li
e,25%
B.El
l
ie,30%;Ol
li
e,25%; Mil
l
ie,20%;Ti
ll
i
e, 25%
C.El
li
e,25%;Ol
li
e,25%; Mil
li
e,25%;Ti
ll
ie,25%
D.El
li
e,20%;Ol
li
e,30%; Mil
li
e,25%;Ti
ll
ie,25%

32.Whatwouldbethecapi
tal
bal
anceofOl
l
iei
mmedi
atel
yaf
terTi
l
li
e'
sadmi
ssi
on?
A.₱120,000
B.₱135,000
C.₱142,500
D.₱152,000

33.Howmuchwouldber
ecei
vedbyEl
l
ief
rom t
hesal
eofpor
ti
onhi
sint
erestt
oTi
l
li
e?
A.₱50,
000
B.₱60,
000
C.₱75,
000
D.₱80,
000

34.EgayandEgoewhoshar eprof
itsandlossesequal
lyhav
ecapit
albal
ancesof₱200,
000and
240,
000,r
espect
ivel
y.TheyadmitEngylf
or1/3inter
esti
nthepar
tner
shi
pcapit
alandpr
ofi
tsf
oran
i
nvest
mentof₱260,000.

Byhowmuchwer ethenetasset
sunder
val
ued?(
Engy
liscr
edi
tedf
orhi
scapi
tal
cont
ri
but
ion)
A.₱80,
000
B.₱90,
000
C.₱110,
000
D.₱120,
000

35.TessandShi r
leywhoshar epr of
it
sandlossesequall
y,havecapit
albal
ancesof₱170,
000and
₱200,
000,respecti
vel
y.Theyagr eedt oadmi
tGenf ora1/ 3inter
estincapi
talandpr
ofi
tsforher
i
nvestmentof₱200,000.Par
tnershipasset
sar
enotber ev
alued.
Howmuchofthe200,000wouldbecredi
tedt
oTessandShi
rl
ey,
respect
ivel
y?
A.Tess,₱5,
000;Shi
rley
,₱5,000
B.Tess,
₱6,000;Shi
rl
ey,₱4,
000
C.Tess,
₱8,000;Shi
rl
ey,₱2,
000
D.Tess,
₱7,000;Shi
rl
ey,₱3,
000

Fori
tems36- 38
Angela,Bi
ancaandCiar
aarepar t
nerswhoshar eprof
it
sandl ossesin3:2:1rati
o.OnDecember31,
2013,Angeladeci
dedtoreti
re.Atthattime,thepart
ners'capi
talaccountbalanceswer
e₱96,000,
₱84,000and₱144,000r
especti
vel
y.(Eachquesti
onisi
ndependentfrom eachother)

36.Thepar tnersagreethattheinventor
ieshavecurrentfai
rvalueinexcessofcarry
ingval
ueof
₱36,000.Afterthebookswereadjustedandrefl
ectf
airvaluesofasset
s,Angel
arecei
vedcashequal
tothebalanceofhercapit
alaccountatwhatamount?
A.₱114,000
B.₱112,000
C.₱120,000
D.₱135,000

37.Thepar t
nersagreedthatsomeassetswereunderv
aluedby₱36,000butdecidednott
oadjustt
he
bookst orefl
ectfairval
ues.Theunderval
uat
ionofassets,however
,isconsi
deredincal
cul
ati
ngthe
amountt obepai dt oAngel ai
nsettl
ementofherequi ty.Whatwouldbet hecapit
albal
ancesof
BiancaandCi ar
a,respect
ivel
yaft
ert
hereti
rementofAngela?
A.₱60,000and₱132, 000
B.₱55,000and₱136, 000
C.₱75,000and₱137, 000
D.₱80,000and₱140, 000

38.Thepart
nersagreedt hattheamountshownf orinvent
orywas₱24,000mor
et hani
tscurrentf
air
marketval
ue.Afterrefl
ecti
ngi nt
hebookst headjustmentinthef
airv
alueofi
nventor
y,Angelawas
pai
dincashequal t
ot hebalanceofhercapi
talaccountatwhatamount
?
A.₱84,000
B.₱96,000
C.₱100,000
D.₱125,000

Fori
tems39-40
MikeandTessarepar
tnerswit
hcapit
albalancesof₱70,000and₱50,
000,respect
ivel
y.Theyshare
prof
it
sandlossesi
nther at
ioof3:
1,respect
ivel
y.Voceistobeadmit
tedint
ot hepart
nershi
pf ora
cashcont
ri
buti
onof₱60,000for1/
2interesti
nt hepar
tner
shi
pcapi
talandinthefutur
epr of
it
sand
l
osses.

39.IfVocewil
lbegi
venacapi
talcr
edi
tof₱90,
000,
howmuchwaschar
gedi
nthecapi
talaccountof
Mike?
A.₱22,
500
B.₱25,
000
C.₱26,
400
D.₱28,
700

40.I
fVocewil
lbegiv
enacapi
talcr
edi
tof₱50,
000,whatwoul
dbet
hecapi
talbal
anceofTessaf
ter
Voce'
sadmi
ssion?
 A.₱62,
500
B.₱80,
000
C.₱90,
000
D.₱100,
000

41.MannyandJinkyarepart
nerswithcapi
talbal
ancesof₱30,
000and₱40,000andshar
ingprof
it
s
andlosses40% and60%,respect
ivel
y.Kri
staistobeadmitt
edasapartnerbypayi
ng₱20,000in
exchangef
or50%ofManny '
sequit
y.

Howmuchist
hetotal
int
erestofMannyandJi
nky
,respect
ivel
y,af
teradmi
ssi
onofKr
ist
a?
A.₱20,
000and₱40,000
B.₱20,
000and₱20,000
C.₱15,
000and₱40, 000
D.₱15,
000and₱20,000

42.RhovilandMarkarepar t
nerswit
hprofi
tandlossr
ati
oof75:
25andcapi
talbal
ancesof₱100,000
and₱50,000,respect
ivel
y.Gem istobeadmitt
edt ot
hepar
tner
shi
pbypurchasi
nga20%i nt
erestin
thecapi
tal,pr
ofi
tsandlossesfor60,
000.

Assumi ng t
hatno assetrevaluat
ion i
st o be made,t
he capi
talbal
ancesofRhov
iland Mar
k,
respecti
vel
y,aft
ertheadmi
ssionofGem are:
A.₱80,000and₱40,000
B.₱100,000and₱50,000
C.₱112,000and₱38,000
D.₱120,000and₱60,000

43.Assumi
ngthattheequi pmentofthepar
tner
shi
pisunder
val
ued,t
hecapi
talbal
ancesofRhov
il
,
MarkandGem,respect
ivel
y, aft
ert
headmi
ssi
onare:
A.₱100,
000;₱50,000; ₱60,
000
B.₱170,
000;₱70,000; ₱60,
000
C.₱192,
500;₱77,500; ₱30,
000
D.₱800,
000;₱40,000; ₱30,
000

44.Pat r i
ciacontr
ibuted₱24,000andCi ar acont ri
but ed₱48, 000t of or
m apar tnershi
pandt hey
agreedt osharepr ofi
tsinther ati
ooft heiroriginalcapi talcontr
ibuti
on.Duri
ngt hef i
rstyearof
operations,theymadeapr ofi
tof₱16, 290;Pat r
iciawi thdrew₱5, 050andCi ar
awi thdrew₱8,000.At
thestar tofthefol
lowingyear,
theyagreedt oadmi tGizell
ei ntothepartner
shi
p.Gizell
ewast oreceive
aone- fourthofinter
estincapitalandprof i
tsuponpay mentof₱30, 000t oPatr
iciaandCi ar
awhose
capit
alaccount swer etobereducedbyt ransfersofGi zel
le'scapit
alaccountofamount ssuffi
cientto
bri
ngt hem backt otheiror
igi
nalcapit
alratio.

Howshoul
dthe₱30,000paidbyGi
zel
l
ebedi
vi
dedbet
weenPat
ri
ciaandCi
ara,
respect
ivel
y?
A.₱9,825and₱20,175
B.₱9,300and₱20,700
C.₱10,000and₱20,000
D.₱15,000and₱15,000

45.Si ya,AkoandTay oar epar

tnerswithcapit
albal
ancesof₱224,000,₱780,
000and₱340,000,
respect i
vel
y,shari
ngpr ofi
tsandlossesi ntherat
ioof3:2:
1.Kamiisadmi t
tedasanew partner
bringingwithhim exper
tiseandi
st oinv
estcashfora25%inter
esti
nthepart
nershi
p,whi
chi
ncl
udes
acr editof₱210,000bonusuponhisadmi ssi
on.
Howmuchcashshoul
dKami
cont
ri
but
e?
A.₱168,
000
B.₱390,
000
C.₱450,
000
D.₱600,
000

Foritems46- 47
Desiree,DeborahandDext erarepartner
ssharingprof
it
sandl ossesintherati
oof5: 3:
2,r
espect i
vely.
AsofDecember31, 2014,thei
rcapi
talbal
anceswer e₱285,000,₱240,
000and₱180, 000,respecti
v ely.
OnJanuar y1,2015,t hepar t
nersadmi t
ted Donnal
ynasanew par tnerand accordi
ng t ot heir
agreement ,Donnalynwi l
lcontri
but
e₱240, 000incashtot hepartner
shipandal sopay₱30, 000f or
15%ofDebor ah'sshare.Donnalynwil
lbegivena20%shar einprofi
twhiletheori
ginalpar
tners'shar e
wil
lbepr oport
ionatel
yt hesameasbef ore.Aft
eradmi ssi
onofDonnal yn,thetotalcapit
alwi l
lbe
₱990, 000andDonnal yn'
scapitalwi
llbe₱210,000

46.Theamountofassetr
eval
uat
ioni
s
A.₱21,
000
B.₱45,
000
C.₱66,
000
D.₱111,
000

47.Theamountofbonusi
ntheadmi
ssi
onofDonnal
ynwoul
dbe_
___
___
A.₱66,
000
B.₱33,
000
C.₱36,
000
D.₱19,
800

Forit
ems48-49
One,TwoandThr eeshareprofi
tsi
ntherat
ioof2:
3:5.OnJanuar
y20,Thr
eeopt
edt
oret
ir
efr
om t
he
part
nershi
p.Thecapi
talbal
ancesonthi
sdatef
oll
ow:

One ₱25,
000
Two 40,
000
Thr
ee 35,
000

48.Howmuchwillbet
hecapi
tal
ofTwo,
assumi
ngThr
eesol
dhi
sint
erestt
oTwof
or10,
000?
A.₱25,
000
B.₱40,
000
C.₱50,
000
D.₱75,
000

49.Byhowmuchshoul
dOne,Capi
taldecr
ease,assumi
ngThr
eei
spai
d39,
000i
nful
lset
tl
ementof
hi
sint
erest
?
A.₱1,600
B.₱2,400
C.₱3,000
D.₱4,000

50.OnDecember30,2013,t
hestatementoffinanci
alposit
ionofDangerCompanyhadt hefoll
owing
bal
ances:Tot
alassets₱450,000;Wi ll
i
e,loan ₱25,000,Will
i
e,capital₱103,750;Manny,capital
₱96,250andLor
en,capit
al₱225,000.Thepar t
nersshareprofi
tsandl ossesi
nt her
ati
oof25% t o
Wil
li
e,25%toMannyand50%t oLor en.Wil
l
iereti
resfr
om thepartner
shipandthepart
nershi
passets
shal
lbeadj ustedtothei
rfai
rv al
uesof₱510,
000asofDecember31,2013.Thepart
ner
shipal
so
suff
erednetlossof₱150,000forthey
ear2013.Thepar
tner
shi
pwoul
dpayWill
ie₱108,
500cashf
or
hi
stotali
nteresti
nthepart
nership

Whati
sthet
otalcapi
tal
ofMannyaf
terr
eti
rementofWi
l
li
eassumi
ngt
heuseofbonusmet
hod?
A.₱73,000
B.₱73,
750
C.₱76,
000
D.₱76,
750

Foritems51-55
Sy,Tanand GoKong ar epart
nerswithcapi
talbal
ancesof₱500,000,₱400,
000 and ₱300,
000,
respecti
vel
y.Profi
tsandlosseshavebeensharedequall
y.GoKongwishest
oreti
refrom t
hefir
m.
(Eachitem i
sbeingtakeni
ndependent
ly)

51.GoKong'sinterestissoldtoConsunj
i,anew par
tnerf
or₱360,
000.How muchi
sthet
otal
par
tner
shipcapit
al af
terGoKong'
sret
ir
ementf
rom t
hefi
rm?
A.₱900,000
B.₱1,160,
000
C.₱1,200,000
D.₱1,500,
000

52.GoKong'sinter
estissol
dtotheremai
ningpar
tner
s,eachpar
tnerpay
ing₱180,
000.Howmuchi
s
thecapit
alofTanafterGoKong'
sret
ir
ementfr
om t
hefir
m?
A.₱525,000
B.₱550,000
C.₱560,050
D.₱620,000

53.GoKong receiv
es ₱340,000 ofpar
tner
shi
pf unds f
orhisi nt
erest
.The excess pay
menti
s
att
ri
but
abletoanunder val
uati
onofthefi
rm'
sland.Allot
herassetsarefai
rl
yval
ued.How muchi
s
Sy'
scapi
talaf
tertheret
ir
ementofGoKong?
A.₱480,000
B.₱510,500
C.₱540,000
D.₱590,090

54.GoKongr ecei
ves₱380,000ofpar
tner
shi
pf unds.Theremainingpar
tnersagreetoabsor
bthe
excesspaymenttoGoKong.Howmuchisthefi
rm'stotal
capi
tal
afterther
eti
rementofGoKong?
A.₱790,
000
B.₱820,
000
C.₱870,
000
D.₱920,
000

55.GoKongreceives₱240, 000ofpar
tner
shi
pf undsforhi
sinter
est
,bonusbei
ngcredi
tedt
othe
remai
ningpar
tners'account
.Howmuchi st
hecapital
ofSyaf
tert
heret
ir
ementofGoKong?
A.₱505,000
B.₱512,000
C.₱520,000
D.₱530,000
Forit
ems56- 60
Acondensedst atementoffi
nancialposit
ionpreparedfortheAAPar t
ner ship,
ownedbyAlmaandAJ
atOctober31,2013i sshownbel ow.Al maandAJi nvit
edAlonat ot heirpart
nershi
p.Al
maandAJ
havebeendi vidingprofi
tsandl ossesi nther at
ioof3:2,respecti
vely,andt hisrat
iowil
lcont
inue
betweenthet woaf tert
headmi ssionofAl ona.Thenthenewpar tnershipwi l
lhaveaprofi
tandloss
rat
ioofAlona,50%; Alma,30%andAJ, 20%.

AAPar t
nership
St
atementofFinancialPosi
ti
on
October31,2013

CurrentAssets ₱360,
000 Li
abil
it
ies ₱320,
000
Property
,PlantandEqui
pment 840,
000 Al
ma, Capit
al 560,
000
AJ,Capit
al 320,
000

Tot
alAsset
s ₱1,
200,
000 Tot
alEqui
ty ₱1,
200,
000

Bel
owar
efi
vecondi
ti
onsunderwhi
chAl
onamaybeadmi
tt
edi
ntot
hepar
tner
shi
p.

56.Alonapurchasesone-halfequi
tyinthepar
tner
shi
pfr
om AlmaandAJf or₱550,000.Paymenti
sto
bemadedi r
ectlytoAlmaandAJ.Al maandAJeachwi l
lret
ainone-
halfoftheirr
especti
veequi
ti
es
andt r
ansfertheotherhalvest oAlona.How muchwouldbethecapit
albalancesofAlmaandAJ,
respecti
vel
yafterAlona'
sadmi ssi
on?
A.₱280,000and₱160, 000
B.₱230,000and₱170, 000
C.₱250,000and₱180, 000
D.₱245,000and₱195, 000

57.Al
onainvests₱1,000,
000tothepart
ner
shi
precei
vi
ng50% i
nter
esti
nthepar
tner
shi
p.Byhow
muchwast hecapit
alofAl
maincr
eased?
A.₱36,000
B.₱38,000
C.₱42,000
D.₱45,000

58.Alonainv
est s₱1,000,
000t othepar t
nershiprecei
ving50% inter
est
.TheamountofAlona'
s
i
nvestmenti
mpl i
esthattheproper
ty,pl
antandequipmentwerecarriedatamountl
esst
hant
hei
rfai
r
val
ues.Howmuchwoul dbethecapit
alofAJaf t
ertherev
aluat
ionofPPE?
A.₱312,000
B.₱320,
000
C.₱368,000
D.₱390,000

59.Alonai nvest
s₱600,
000inthepar
tner
shi
pr ecei
vi
ng50% i
nter
estincapi
talandincome.All
par
tnershipassetsandl
i
abi
li
ti
esaref
air
lyval
ued.How muchi
st ot
alpar
tner
shipcapi
talaf
tert
he
admissionofAlona?
A.₱1,050,
100
B.₱1,325,
000
C.₱1,420,
050
D.₱1,480,
000
60.Alonainvests₱720,000inthepar t
nershi
pandrecei
ves50% inter
estincapitalandpr
ofi
t.The
bonust oAl
onawi l
lbechargedagainstAl
maandAJi ntherat
ioof3:2,r
espect
ivel
y.Howmuchwoul d
bethecapital
balanceofAlmaaftertheadmissi
onofAl
ona?
A.₱512,000
B.₱525,000
C.₱615,000
D.₱640,000

61.RedandWhi tearepart
nerswhoshareprofi
tsandl ossesintherati
oof7:3,respect
ivel
y.OnJune
30,2013,thei
rcapit
alaccountswereasfoll
ows:Red,₱700, 000;White,₱600,
000.Ont hatday,they
agreedtoadmitBlueasapartnerwi
thone-t
hir
di nt
erestinthecapi
talandprofi
tsuponhisinvest
ment
of₱500,000.All
partner
shi
passetsaref
air
lyvalued

I
mmediat
elyaf
terBl
ue'sadmissi
on,whatar
ethecapi
tal
bal
ancesofRed,
Whi
teandBl
ue,
respect
ivel
y?
A.₱630,000;₱570,
000;₱600,000
B.₱670,
000;₱520,000;₱650,
000
C.₱720,000;
₱610,000;₱520,
000
D.₱700,000;
₱600,000;₱500,
000

Foritems62- 63
Daisywi shestopur chaseone-f
ourthint
eresti
nthecapitalandprofit
sinthepar t
nershi
pofMi ckey,
MinnieandDonal d.Thethr
eepar t
nersagreedtosel
lone-fourt
hoft hei
rrespecti
vecapit
alandprofi
t
and lossi nterestsfora totalpaymentof₱400, 000.The capitalaccountsand t he r
especti
ve
percentageinterestsi
ntheprofi
tsandlossesimmediat
elybeforet
hesal etoDaisyfol
l
ow:

Capit
alBal
ance Pr
ofi
t/LossRat
io
Mickey ₱800,
000 40%
Minnie 400,
000 30%
Donald 200,
000 30%

Al
lasset
sandl
i
abi
l
iti
esoft
hepar
tner
shi
par
efai
rl
yval
ued.

62.Whatshoul
dbet hecapit
albalancesofMi ckey,Mi nni
e,DonaldandDai
sy,i
mmedi
atel
yaf
ter
Dai
sy'
sadmissi
on?
A.₱660,
000;
₱295,000;
₱95,000;and₱350,000,respecti
vel
y
B.₱600,
000;₱300,
000;₱150,
000; and₱350,000,respecti
vel
y
C.₱620,
000;
₱315,000;
₱175,000;and₱300,000,respecti
vely
D.₱690,
000;
₱310,000;
₱125,000;and₱350,000,respecti
vely

63.Whati
st henewprofi
tandlossrati
obetweenMickey,Minni
e,Donal
dandDai
sy,
respect
ivel
y?
A.Mickey(25%)
;Minnie(25%);Donal
d(25%);
Daisy(25%)
B.Mickey(40%)
;Minnie(30%);Donal
d(10%);
Daisy(20%)
C.Mickey(30%)
;Minnie(30%);Donal
d(20%);
Daisy(20%)
D.Mickey(30%);
Mi nni
e(22.5%);Donal
d(22.
5%);Daisy(25%)

64.Bobotisadmit
tedtoapar
tner
shi
pwith25%int
erestbyacashi
nvest
mentof₱400,
000.I
fthet
otal
part
nershi
pcapit
alis₱1,
400,
000bef
oreadmit
ti
ngBobot,howmuchisthebonust
oBobot?
A.₱40,000
B.₱45,000
C.₱50,000
D.₱65,000
65.ReyesandSanti
agoarepart
nerswhoshar
epr
ofi
tsandl
ossesi
nther
ati
oof7:
3,r
espect
ivel
y.On
Januar
y2,2014,t
heircapi
tal
account
sar
e:

Reyes ₱1,
200,
000
Santi
ago 800,
000
Total ₱2,
000,
000

Duri
ngthefi
rstt
hreemonthsof2014,t
hepart
nershipear
nedpr
ofitof₱500,
000.OnApr
il1,2014,
Torr
esist
obeadmi t
tedf
ora30%inter
esti
nthepartner
shi
pbydi
rectpur
chasefr
om t
hepart
nersfor
800,
000.

Howshoul
dthe₱800,000cashbedi
vi
dedbet
weenRey
esandSant
iago?
A.₱400,
000and₱400, 000
B.₱500,000and₱300,000
C.₱600,
000and₱200, 000
D.₱700,
000and₱100, 000

Forit
ems66- 67
JackandPoyar epart
nerswhoprof
it
sandlossesint
herati
oof60:
40,r
espect
ivel
y.OnDecember31,
2013,thecapit
albal
ancesofJackandPoywere₱800,000and₱700,
000,r
especti
vel
y.Onthatdat
e,
theyagreet
oadmi tHoyapart
nerwit
ha30%capitali
nter
est
.

66.I
fHoyinvest
s₱500,
000i
nthepar
tner
shi
p,whati
sJack'
scapi
talbal
ancei
mmedi
atel
yaf
tert
he
admi
ssionofHoy?
A.₱740,
000
B.₱765,
000
C.₱820,
000
D.₱890,
000

67.I
fHoyinvests₱800,
000i
nthepar
tner
shi
p,howmuchi
sPoy
'scapi
talbal
ancei
mmedi
atel
yaf
ter
Hoy'
sadmissi
on?
A.₱722,
000
B.₱744,000
C.₱866,
000
D.₱875,
000

Foritems68-69
Bianca,Cel
ineandDi anaarepart
nersshari
ngpr of
it
sandl ossesi
ntherati
oof3:2:1,r
especti
vel
y.On
December31,Bi ancadeci
destowi t
hdraw from t
hepar t
nershi
p.Thecapit
albalancesont hi
sdate
afterdiv
idi
ngpr ofitf
ortheyearareBianca,₱346,000;Celi
ne,₱213,
000;andDiana,₱133,000.Iti
s
agreedthatBiancashouldbepaid400,000forheri
nterest
.

68.Assumet hattheexcessamountpaidshal
lbetreatedasbonust
oBi
anca,whatwoul
dbet
he
capi
talbal
ancesofCeli
neandDianaaf
terBi
anca'
sret
irement
?
A.₱170,000and₱105,000
B.₱175,000and₱110,000
C.₱177,000and₱115,000
D.₱182,000and₱122,000

69.Assumeinsteadt hatBi
ancaistobepai
d₱310,
000 andthatassetsarefai
rl
yval
ued.Whatwoul
d
bethecapi
talbalancesofCeli
neandDianai
mmediat
elyaft
erBianca'
sreti
rement?
A.₱237,000and₱145, 000
 B.₱254,
000and₱135,
000
C.₱345,
000and₱162,
000
D.₱370,
000and₱172,
000

70.R. Romero and S.

Sandovalare part
ners who shar
e prof
it
s and l
osses i
nthe r
ati
o of7:
3,
respecti
vel
y.OnMay1, 2013,
thei
rrespect
ivecapi
tal
balanceswereasf
oll
ows:

R.Romero ₱900,
000
S.Sandov
al 800,
000
Total ₱1,
700,
000

Onthatdat
e,theyagr
eedtoadmitQ.Quizonaspart
nerfora40%int
eresti
nt hecapi
talandpr
ofi
ts
uponhi
sinvest
mentof₱800,
000.Al
lassetsandl
iabi
l
iti
esoft
hepar
tner
shiparefai
rl
yvalued.

Immediat
elyaf
terQ.Qui
zon'sadmi
ssi
on, whatwoul
dbet
hecapi
talbal
ancesofR,
Romer
o,S.
Sandov
al
andQ.Qui
zon,r
especti
vely
?
A.₱760,000;₱740,
000;and₱1,000,000
B.₱780,
000;₱760,000and₱800,000
C.₱790,
000;₱780,000and₱1,000,000
D.₱820,000;
₱790,000and₱1,100,000

71.Cri
sti
neandCeci
ll
earepartner
swhoshareprof
it
sandl ossesequal
l
y .Thecapi
talaccount
sof
Cri
sti
neandCeci
l
lehavedoubl
edinthr
eey
earsandatpresenthavet
hefol
lowingbal
ances:

Cri
sti
ne ₱1,
100,
000
Ceci
ll
e 700,
000

Ciar
adesirest
oj oi
nthefi
rm andoffer
edtoinvest₱600,
000forone-
thi
rdint
erest
.Cri
sti
neandCeci
l
le
decl
inedhisofferbuttheyextendedacount er-
off
erwithCiar
ainvest
ing₱800,000forone-
four
th
i
nteresti
nthecapit
alandprofi
tsandlossesofthefi
rm.

IfCi
araaccept edthei
roff
er,whatshoul
dbet
hecapi
talbal
ancesofCr
ist
ineandCeci
l
leaf
terCi
ara'
s
admission?
A.₱1,125,000and₱735,000
B.₱1,330,
000and₱740, 000
C.₱1,175,000and₱775,000
D.₱1,440,000and₱780,000

72.Ar thur,Berni
e and Carl
o are partners who share prof
it
s and losses i
nt he r
ati
o of5: 3:
2,
respectiv
ely.Theyagreet
osell25%oft heirrespecti
vecapi
talandprofi
tandlossrati
otoDwi ghtf
ora
totalpaymentdi rect
lytothepartnersi ntheamountof₱130, 000.Thecondensedst atementof
fi
nancialpositi
onoftheABCPar t
nershi
pi sasf oll
ows:

Cash ₱60,
000 Li
abi l
it
ies ₱100,
000
Non-
Cashasset
s 540,
000 Art
hur ,Capi
tal 250,
000
Bernie,Capi
tal 150,
000
Carlo,Capit
al 100,
000

Tot
al ₱600,
000 Tot
al ₱600,
000

Whatwoul
dbet
hecapi
tal
bal
ancesofAr
thur
,Ber
nieandCar
loaf
tert
headmi
ssi
onofDwi
ght
?
 A.₱175,
500;
₱110,000;
and₱70,000
B.₱185,
550;
₱105,000;
and₱75,000
C.₱187,
500;₱112,
500;and₱75,000
D.₱190,
500;₱124,
000;and₱85,
000

73.Howar dandI vanarepartner

swithcapi
talbalancesof₱300,000and₱250, 000shari
ngprofi
ts
andlosses3:1,respect
ivel
y.Theyagr
eedtoadmi tJasperaspart
ner.Jasperinv
ests₱150,000f
ora
40%interesti
nthef i
rm.HowardandIvant
ransferpartoft
hei
rcapi
taltoJasperasbonus.

Whatwouldbethecapi
tal
balancesofthepart
nersaft
erJasper
'sadmi
ssi
on?
A.₱202,
500;₱217,
500; and₱280,000,
respect
ivel
y
B.₱210,
500;₱220,
000;and₱280,000,r
especti
vely
C.₱225,
500;₱225,
550;and₱260,000,r
especti
vely
D.₱230,
000;₱230,
000;and₱270,000,r
especti
vely

74.Oli
verandPatrickarepar tner
swi t
hapr of
itandlossrat
io of3:
1andcapi t
albal
ancesof
₱1,
000,000and₱500,000,respecti
vel
y.Ni
cksistobeadmi t
tedi
ntothepar
tner
shi
pbypurchasi
nga
20%int
eresti
nthecapit
al,
pr of
it
sandlossesfor₱500,
000.

Whatwouldbethecapi
tal
bal
ancesofOl i
verandPat
ri
ckaf
tert
headmi
ssi
onofNi
cks?
A.₱800,
000and₱400,000,
respectivel
y
B.₱700,
000and₱300,
000,respecti
vely
C.₱950,
000and₱350,
000,respecti
vely
D.₱980,
000and₱450,
000,respecti
vely

75.Thecapi
talaccount
sfort
hepar
tner
shi
pofUl
yssesandVol
tai
reonSept
ember1,2013ar
eas
fol
l
ows:

Ul
ysses,
Capi
tal ₱800,
000
Vol
tai
re,
Capi
tal 400,
000

Thepart
nersshareprof
it
sandl ossesintherat
ioof6:
4,r
espect
ivel
y.Thepart
nershi
pisi
ndesperat
e
needofcash,andthepar
tnersagreetoadmitWalt
erasapart
nerwitha1/3int
eresti
nthecapi
tal
and
prof
it
sandlossesuponhisinvest
mentof₱300,000.

Immediatel
yaf
tert
headmissi
onofWal t
er,whatwouldbethecapi
talbal
ancesofUl
ysses,Vol
tai
re
andWalter?
A.₱670,
000;₱340,
000;
and₱500,000,r
especti
vely
B.₱675,
000;₱335,
000;
and₱300,000,r
especti
vely
C.₱680,
000;₱320,
000;and₱500,000,
respect
ivel
y
D.₱720,
000;₱350,
000;and₱300,
000,r
especti
vely

76.Cordov
aandDecenaar
epartnerswhoshareprofi
tsandlossesequal
ly
.Thecapi
talaccount
sof
CordovaandDecenaare₱90,
000and₱60, 000,r
especti
vel
y.Eler
iadesi
restojoi
nt hefir
m and
i
nvested₱70,
000f
ora1/4i
nter
estinthecapi
taloft
hefir
m.

Whatwouldbethebal
ancesint
hecapit
al account
sofCor
dov
aandDecenaaf
terEl
eri
a'
sadmi
ssi
on?
A.₱92,
500and₱65,500,
respect
ively
B.₱97,
500and₱67,500,r
especti
vely
C.₱82,
500and₱52,500,
respect
ively
D.₱80,
500and₱52,000,
respect
ively
77.OnJuly1,2015,thestatementoffi
nanci
alposit
ionf
ort
hepar
tner
shi
pofKar
l,Lest
erandMi
l
es
wit
hthei
rrespect
iveprof
itandlossr
ati
owasasf ol
lows:

Asset
s,atcost ₱1,
800,
000

Karl,Loan ₱90,
000
Karl,Capit
al 420,
000
Lester,Capit
al 390,
000
Miles,Capit
al 900,
000

Karldied.Thepart
nershi
pwouldsett
lehisi
nter
estwit
hhisheir
s.Bymut ualagreement,theassets
aret obeadjust
edt othei
rfai
rmarketval
ueof₱2,160,
000atJuly1,2013.Itwasagr eedt hatthe
partnershi
pwouldpayKarl'
shei
rs₱650,
000cashforhisi
nter
estincl
udi
ngKar l
'
sl oanwhichistobe
repaidinful
l.

Af
terset
tl
ementwit
hKarl
'
shei r
s,whatwouldbet her
espect
ivecapi
tal
bal
ancesofLest
erandMi
l
es?
A.₱440,
000and₱1,
055,000,respect
ively
B.₱445,
000and₱1,065,000,
respecti
v el
y
C.₱550,
000and₱1,
100,000,respect
ively
D.₱575,
000and₱1,125,
000,respect
ively

78.Angela,apar t
neroft heaccountingfirm ABC andCompanydeci dedtowi thdraw fr
om t he
part
nershi
p.Angel ahad30%shar eint heprofi
tsandlosses.Infi
nalsettl
ementofAngel a'
sinter
est,
thepartnershi
p paid her₱86,000 alt
houghhercapi t
albalancebef oreherretir
ementwasonl y
₱80,000.The₱6, 000dif
fer
enceimpliedthatanequipmentwasunder v
aluedforwhichanappr opr
iate
adj
ustmentwast akenupi nthebooksoft hepartner
ship.Thetotalofthepartners'capi
talbefore
Angela'
swithdrawalandbeforetheadjustmentofequipmenttofai
rv al
uewas₱270, 000.

Whatwouldbethepar
tner
shi
p'
snetasset
saf
tert
hewi
thdr
awal
ofAngel
a?
A.₱200,
500
B.₱202,
550
C.₱204,
000
D.₱210,
000

79.Aseng,LarengandLelangarepart
nersshar
ingprof
itsintherat
ioof3:
2:1,respect
ivel
y.Capit
al
accountsare₱500,000;₱300,
000;and₱200,000onDecember31,2015,whenLel angdeci desto
withdr
aw.Iti
sagreedtopay₱300,000forLel
ang'
sint
erest.Pr
ofi
tsaft
ert
hereti
rementofLel angare
tobesharedequall
y.

Whatarethecapit
albal
ancesofAsengandLar
engaf
tert
her
eti
rementofLel
ang?
A.₱330,000and₱236,000
B.₱375,000and₱240,000
C.₱425,000and₱250,000
D.₱440,000and₱260,000

80.Part
nersSantos,Salonga and Sal
azarshar
eprofi
tsand l
osses50:
30:
20,r
espect
ivel
y.The
stat
ementoff
inanci
alposit
ionofthepar
tner
shi
patJul
y31,2016f
oll
ows:

Cash ₱40,
000 AccountsPayable ₱100,
000
Otherasset
s 360,
000 Santos,
Capit
al 74,
000
Sal
onga,Capital 130,
000
Sal
azar,Capi
tal 96,
000
 Tot
al ₱400,
000 Tot
al ₱400,
000

Theassetsandliabi
l
iti
esarerecor
dedandpr
esentedatthei
rrespect
ivef
airv
alues.Sant
anai
st obe
admitt
edasanew par tnerwit
ha20% capi
talinter
estanda20% shar eofprofit
sandlossesin
exchangeforacashcontri
but
ion.

Howmuchshoul
dSant
anacont
ri
but
e?
A.₱70,
000
B.₱72,
000
C.₱75,
000
D.₱78,
000

CHAPTER4: PARTNERSHI PLIQUIDATI

ON
1.Whatreferst ot hewindi
ngupofpar t
nershi
pbusi
nesschar
act
eri
zedbysal
eofnon-
cashasset
s,
set
tl
ementofl iabil
iti
esanddist
ri
buti
onofcashtopar
tner
s?
A.Format ion
B.Operat i
on
C.Dissolution
D.Li
qui dation

2.Ifthepartnershipli
quidat
ioniscomplet
edwi
thi
nareasonabl
yshor
tper
iodofti
mesucht hatt
he
non-cashasset sar eimmedi at
elyreal
i
zedandcashisimmediat
elydi
str
ibut
edto cr
edi
torsand
part
ners,___
_ _____t
akesplace.
A.Lump- sum li
quidati
on
B.I
nstallmentli
quidati
on
C.Partnershi
pliqui
dati
on
D.Corporateli
quidati
on

3.I
fthepartnershi
pl i
quidati
onextendsov
eraconsi
derabl
eperiodoft
imebecauseoft
hedi
ff
icul
tyof
conver
ti
ngal lnon-
cashasset sint
ocash,_
___
___
_takesplace.
A.Lump- sum li
quidati
on
B.Install
mentl i
quidati
on
C.Partnershipli
quidati
on
D.Cor porat
ionli
quidati
on

4.Whi
chofthefoll
owingmightbear eason/sofliqui
dati
ngapart
nershi
p?
A.Apar t
nershi
pwasor ganizedwithafixedterm
B.Anagr eementofal
lpartnerstovol
unt ar
il
ytermi
nat
ethei
roperati
on
C.Apar t
nershi
porgani
zedf oraspecifi
cunder t
aki
ngorpurpose
D.Allofthese

5.Whatref
erst othepr
ocessofconv
ert
ingofnon-
cashasset
sint
ocash?
A.Li
quidat i
on
B.Reali
zat i
on
C.Dissoluti
on
D.Conv ersi
on

6.Whatchar acter
isti
csofapar
tnershi
pjusti
fytheabsor
pti
onofbyot
herpar
tner
soft
hedef
ici
ency
thatcannotbemadegoodbyani nsolventpar
tner?
A.Li
mi t
edlifeandmut
ualagency
 B.Li
mitedli
feandco-ownershi
pofpr
operty
C.Mutualagencyandpart
nershi
pnon-t
axabi
li
ty
D.Mutualagencyandunli
mi t
edli
abi
li
ty

7.Inthefinalli
quidati
ontransact
ion,theremai
ningcashisdi
str
ibut
edt
othepar
tner
s.Thepar
tner
s'
shareinthecashdi stri
but
ionisaccordingt
othei
r___
_____
_
A.Capitalbalances
B.Cashbal ances
C.Profi
t-shari
ngrati
os
D.Withdrawals

8.Whi
choft
hefoll
owingtr
ansact
ionswouldnottakepl aceinthepar
tner
shi
pli
qui
dat
ion?
A.Apart
nersettl
eshisdef
ici
encybycontri
butingcash
B.Apart
nersettl
eshisdefi
ciencybycontr
ibutingnon-cash
C.Apart
nersettl
eshisdef
ici
encybydeclar
ingbankr uptcy
D.Theotherpar
tner
sabsorbsapar t
nerdefi
ciency

9.Adefi
ciencyinthecapit
aloftheinsol
ventpart
neris_
____
__
A.Al osstotheotherpartner
s
B.Agai ntotheotherpar
tners
C.Ther esul
tofthelossofoperati
ons
D.Ther esul
tofthesaleofnon-cashassetsatagai
n

10.Thepr
ocessofl i
quidati
onofapar tner
shi
pincl
udesal
lthef
oll
owi
ngst
eps,
exceptwhi
chone?
A.Dist
ributingtheremai ni
ngcash
B.Obtainingcour tapproval
C.Payingt hepartnershi
pliabi
l
iti
es
D.Sell
i
ngt heassets

11.Theorderofthepar t
nershipliquidat
ionpr ocessis_______
__
A.distr
ibutecashtopar tners,payliabil
it
ies,sel
lassets
B.payliabi
lit
ies,
sellassets,distr
ibutecasht opartners
C.sellassets,di
str
ibutecasht opartners,payli
abil
it
ies
D.sellassets,payli
abili
ties,dist
ributecasht opartners

12.I
napartnershi
pli
quidati
on,againfr
om t hesal
eofasset
siscr
edi
tedt
othe_
___
___
_
A.part
nerswiththelowestcapi
talbalance
B.part
nersbasedont heprofi
t-
sharingrati
o
C.part
nersbasedont hei
rcapit
albalances
D.part
nershi
pliabi
li
ti
es

13.I
nthefinalpart
nershi
pli
qui
dationt r
ansacti
on,remaini
ngcashi
sdi
str
ibut
edt
o__
___
___
A.partnersbasedonthecapi t
albalances
B.partner
sbasedont heprofit
-shar
ingrati
os
C.thepartnerswit
hthegreatestcapit
albalance
D.thepartnerswit
hthelowestcapitalbal
ance

14.TheABCPar t
nershi
pisterminatedwhentheclai
msofcompanycr edi
torsexceedpar tnershi
p
asset
sby50,
000.Thecapit
albal
ancesofA,BandCar e35,
000;5,
000;and(90,
000),respect
ively
.Who
amongthepar
tner
sis/ar
epersonall
yandindi
vi
dual
l
yl i
abl
eforall
part
nershi
pliabi
l
iti
es?
A.A
B.B
 C.AandB
D.A,
BandC

15.I
ntheli
quidat
ionofthepart
nershi
p,thegai
nsandlossesfrom assetssoldare_
___
___
_
A.di
videdequal
lyamongt hepart
ners
B.di
videdamongt hepartner
sinthestatedi
ncomer at
io
C.di
videdamongt hepart
nersinpropor
ti
ontothei
rcapital
equityint
erest
s
D.i
gnored

16.Whatref
erstotheexcessofapar
tner
'sshar
eofl
ossesov
erhi
scapi
tal
credi
tbal
ance?
A.Capit
aldefi
ciency
B.I
nsolvency
C.Defi
citbal
ance
D.Solv
ency

17.Apart
nerwhoseper sonalasset
sar
emor
ethanhi
sper
sonal
li
abi
l
iti
esi
scal
l
ed_
___
___
___
_
A.Solv
entpar t
ner
B.I
nsolventpart
ner
C.Li
quidati
ngpartner
D.Secretpart
ner

18.Apart
nerwhoseper sonalasset
sisl
esst
hanhi
sper
sonal
li
abi
l
iti
esi
scal
l
ed_
___
___
_
A.Solventpar
tner
B.Insolv
entpartner
C.Liqui
dati
ngpar t
ner
D.Secretpart
ner

19.Itisther i
ghtoft hepartnershi
ptodeducti
mmediat
elyt
hepar
tner
'scapi
taldef
ici
encyf
rom the
part
ner'sloant othepar t
nership,sot
hatonlythenetamountwouldbepai dtothepartnerin
set
tlementofhi si
nterest
.Whati sit?
A.Rightofoffset
B.Rightoft
hepar t
ner s
C.Rightoft
hesol ventpartner
D.Rightoft
hepar tnershi
p

20.I
tisast
atementpreparedtosummar izet
hepr
ocessofl
i
qui
dat
ingt
hepar
tner
shi
p.Whati
sit
?
A.St
atementofChangesi nEquit
y
B.St
atementofLiquidati
on
C.St
atementofFinancial
Posit
ion
D.St
atementofCompr ehensi
veIncome

21.I
fapart
nerisinsolvent,
hispersonal propert
iesshal
lbefi
rstdistri
buted_
____
__
A.t
opar t
nershipcredit
ors
B.t
ot hepartnersbywayofaddi tionalcontr
ibut
ionswhent heasset
softhepar
tner
shi
pwer
e
i
nsuff
ici
enttoset t
leallobl
i
gations
C.t
opar t
nershipandsepar at
ecr editor
sintherati
ooftheirloanexposur
es
D.t
osepar atecredit
ors

22.I
napartner
shi
pli
quidat
ion,
theassetsoft hepart
nershipshallbeappli
edlast
lyt
o__
___
___
A.t
hoseowingtheoutsi
decredi
tors
B.t
hoseowingtothepart
nerswithrespecttotheirshareintheprofi
ts
C.t
hoseowingtothepartner
swi t
hr espectt
ot heircapit
alcontr
ibuti
on
 D.thoseowi
ngt
oinsi
decr
edi
tor
sint
hef
orm ofl
oansoradv
ancesf
orbusi
nessexpensesby
t
hepar
tners

23.Whichofthefollowingst
atementsi scorrectregardi
ngapar tner
'scapitaldefi
ciency?
A.Partnerswhoabsor banot her'scapitaldefici
encyhav eal egalclaim againstthedef
icient
part
ner
B.Thepar t
nershouldcontri
butet oreducet hedebitbalancetotheext entpossibl
e
C.Ifcont r
ibuti
onsarenotpossi ble;theot herpartnerswit
hcr edi
tcapi t
albalanceswillbe
all
ocatedapor ti
onofdebitbalance
D.Allofthesest at
ementsarecor rect

24.Thefoll
owingi sthepr i
oritysequencei nwhi chliqui
dationproceedswi l
lbedistr
ibut
edf ora
par
tner
ship
A.Part
nershipli
abil
it
ies,partnershiploansandpar t
nershipcapi
talbal
ances
B.Partnershi
p drawings,par tnershi
pl iabi
li
ti
es,par t
nershiploans and par
tner
ship capi
tal
bal
ances
C.Partnershi
pl i
abil
i
ties,par t
nershipl oans,par t
nership dr
awings and par
tner
ship capi
tal
bal
ances
D.Part
nershipl
iabi
li
ti
es, par
tnershipcapitalbalancesandpar t
nershi
ploans

25.Cl
aimsagainstpart
ner'
sper
sonalasset
sbycr
edi
tor
sift
hepar
tner
shi
pcan'
tpaydebt
sref
erst
o
___
___
_
A.Li
quidati
on
B.Di
ssoluti
on
C.Mutualagency
D.Unl
imitedli
abi
li
ty

26.Statement1:Ar esul
ti
ngcapi taldef i
ciencyaf
t err
eali
zati
onindicatesthatt
hepar t
ner'
scapi
tal
bef
orel i
qui
dati
onisnotsuffi
cienttocov erhisshar
ei nt
helossonr eal
izati
on
Statement2:Inpart
nershi
pl i
qui dati
on,anygai nsorlossesont hesaleofnon-cashasset
smust
bediv
idedequallyamongthepar tner s.
A.Onl
ystatement1iscor rect
B.Onl
ystatement2iscor r
ect
C.Bot
hstatementsarecor rect
D.Bot
hstatementsareincor rect

26.Statement1:I
nl i
qui
dati
on,cashshouldbedi
str
ibut
edtopar
tner
sonthebasisofpart
ners'pr
ofi
t
andlossrati
o
St
atement2:Onlycashcanbedi stri
but
edt
othepart
ner
supontheli
qui
dat
ionofthepar
tnershi
p
A.Onl
ystatement1iscorrect
B.Onl
ystat
ement2i scorr
ect
C.Bot
hstatementsarecorrect
D.Bothst
atementsareincorrect

28.Statement1:Thepr ocessofl i
quidati
ng t
hepart
ner
shi
pi ssummari
zei
nt hestat
ementof
part
nershi
pli
qui
dati
on
St
atement2:Afterthedistri
buti
onofcasht ot
he part
nersinalump-
sum li
qui
dati
on,t
he
busi
nesshasnoassets,l
i
abili
ti
esorowner '
sequi
ty.
A.Onlyst
atement1iscorrect
B.Onlyst
atement2iscorrect
C.Bothstat
ementsarecor r
ect
D.Bothst
atementsareincorr
ect
29.Statement1:Thegener alpartnersshallabsorbthecapit
aldefi
ciencyt
hatcannotmadegoodby
aninsolventpar
tner
Statement2:Par t
nershi
pdissolutional
way sleadstopar
tnershi
pli
quidat
ion
A.Onlystat
ement1i scor r
ect
B.Onlyst
atement2i scorrect
C.Bothstatementsarecorrect
D.Bothstatementsareincorrect

30.Statement1:Instatementofpar tnershipli
qui
dation,assetsaregeneral
lyclassi
fiedascashand
non-cashassets
Statement2:Whenadef i
cientpartnerhasal oanbal ancetothepartner
ship,thedef i
ciencyshal
l
besetof fagai
nstthel
oanatt hehigherbet weentheloanbal anceandthecapit
al def
iciency
.
A.Onlystat
ement1i scorrect
B.Onlystat
ement2i scorrect
C.Bothstatementsarecor r
ect
D.Bothstat
ement sareincorr
ect

31.Al
i
qui
dat i
ondif
fersfr
om di ssol
uti
oninthattheli
quidat
ion
A.assetsmayber ev al
ued
B.thebusinesswillnotcontinue
C.theremaybeanadj ustmentofpartner
s'capit
alaccount
s
D.gainsandlossesar etodistr
ibut
edaccordingtothepart
ner
shi
pagr
eement

32.Apart
ner'
slossabsorpti
onbalancei scalculat
edby_ ______
A.di
vidi
ngt hepar
tner'
scapitalbalancebyt heper centageint
erestincapital
B.multi
ply
ingdist
ri
butabl
easset sbyt hepar tner
'sprofitshar
ingpercentage
C.div
idi
ngt hepart
ner'st
otalinterestsbyhi sprofitandlosssharingper centage
D.multi
plyi
ngthepartner
'stotali
nterestsbyhi sprofitandlosssharingper cent
age

33.Inaccounti
ngf orli
quidati
onofpar t
nership,cashpaymenttopar
tner
safteral
lout
sidecr
edi
tor
s'
cl
aimshav ebeensat i
sfi
edbutbeforefinalcashdistr
ibut
ion,
shoul
dbeaccor
dingto
A.Relati
v eprof
itandlossshari
ngr ati
o
B.Safepay mentscomput at
ion
C.Thef inalbal
ancesinpartners'capit
alaccounts
D.Ther elat
iveshareingai
norlossi nli
quidati
on

34.Whichoft hef oll

owingisnotcor rectregar
dingwi threspectt
oani nstal
mentli
qui
dationofa
par
tner
ship?
A.Allremai ningli
qui
dat i
onexpensesareantici
pated
B.Allnon- cashassetsar eassumedt obewor t
hless
C.Distributiontopartnersarealwaysmadeaccor di
ngtothei
rprof
itshari
ngper
centage
D.Par tnerswi ththegr eat
estabili
tytoabsorbl ossesandexpensesaret hef
ir
sttor ecei
ve
i
nstalmentdi st
ri
buti
on

35.In a par
tnershipl i
quidation,t he fi
nalcash di
str
ibut
ion t
othepar
tner
sshoul
d bemadei
n
accor
dancewi t
ht heir_
_ _
__ _
A.Safepay mentscomput ati
on
B.Partner
'spr of
itandl ossshar ingrat
io
C.Balancesofpar t
ners' capitalaccount
s
D.Ratiooft hecapitalcont r
ibuti
onsbypar t
ner
s
36.I
naliqui
dati
on,
theli
abili
ti
esofthepartner
shipshoul
dbepaid__
___
__
A.Befor
eanysaleofassets
B.Befor
ethedist
ributi
onofcasht opartner
s
C.Befor
ethedist
ri
butionofgainsandlossesonthedi
sposal
ofasset
s
D.Aft
erareval
uati
onofasset s

37.Whi
chofthef oll
owingassumpt ionsis/
areconsider
edinprepar
ingaschedul
eofsafepay
ment
s?
A.I
nabil
it
yt odisposet
her emai ni
ngnon-cashasset
s
B.I
nsolv
encyoft hepartnership
C.Fai
l
uretomakeaddi t
ionalcashcontri
butionofpart
nerswithcapi
tal
def
ici
ency
D.AandC

38.Whichofthemet hodswi l
lbemostl i
kelyusefuli
nensur
ingtheequi
tabl
edist
ribut
ionofcasht
o
part
ner
sassumi ngthatther
ealizat
ionofnon-cashasset
smightt
akeforalongper
iodoftime?
A.Lump-sum li
quidat
ion
B.Scheduleofsafepayment s
C.Cashpr i
ori
typrogr
am
D.Saleofnon-cashassets

39.I
tref
erstothemaximum lossthatt
hepar
tnercanabsor
bwi
thoutr
educi
ngt
heequi
tybel
owzer
o.
Whatisi
t?
A.Lossabsorpti
onbalance
B.Schedul
eofsafepayments
C.Cashprior
it
yprogr
am
D.Lump-sum li
qui
dat
ion

40.Thesaleofnon- cashassetsmayr
esul
tin_
___
_
A.gains
B.losses
C.eithergainsorlosses
D.neithergainsorlosses

Forit
ems41-42
Celi
neandDionar epar
tner
swithcapi talbal
ancesof24,
500and15, 500,respecti
vel
y.Theyshare
prof
it
sandlossesint
herati
oof3:2,respecti
vel
y.Thepart
nersdeci
dedtoliquidat
ethei
rpartner
shi
p.
Thefir
m'sl
i
abili
ti
esamountto₱36,000includi
ng₱4,000owingt
oCelineand₱3, 500owingtoDion

Af
tert
her
eal
i
zat
ionofasset
s,t
hecashonhandamount
edt
o₱37,
500

41.Howmuchwast
hel
ossonr
eal
i
zat
ion?
A.
₱38,
500
B.
₱37,
500
C.
₱36,
500
D.
₱34,
450

42.Howmuchshoul
dCelineandDionrecei
vei
nfi
nal
set
tl
ementoft
hei
rrespect
ivei
nter
est
?
A.Cel
i
ne,₱5,
600;
Di on,
₱3,800
B.Cel
ine,
₱5,
400;Dion,₱3,
600
C.Cel
i
ne,₱1,
400;
Di on,
₱100
D.Cel
i
ne,₱1,
440;
Di on,
₱110
Foritems43-45
Diana,El
laandFranci
near
epar
tner
swit
hapr of
itandlossr
ati
oof5: 4:1,r
espect
ivel
y.Thepar
tnershi
p
i
st obel i
quidat
ed.Pri
ort
otheli
qui
dat
ion,t
hest at
ementoffinancialposi
ti
onshowst hefoll
owing
balances

Cash ₱20,
000 Li
abili
ti
es ₱20,
000
OtherAsset
s 180,
000 Diana,Capi
tal 80,
000
El
la,Capit
al 60,
000
Franci
ne,Capi
tal 40,
000
Tot
al ₱200,
000 Total ₱200,
000

Af
terr
eal
i
zat
ion,
Ell
arecei
ved₱30,
000asset
tl
ementofheri
nter
est
.

43.Howmuchwasthel
ossont
hesal
eofasset
s?
A.₱73,
000
B.₱74,
000
C.₱75,
000
D.₱77,
000

44.HowmuchdidFr
anci
ner
ecei
vei
nfi
nal
set
tl
ementofheri
nter
est
?
A.₱32,
500
B.₱30,
000
C.₱40,
000
D.₱42,
500

45.Whatamountoft
otal
cashwasdi
str
ibut
edt
othepar
tner
s?
A.₱125,
000
B.₱105,
000
C.₱120,
000
D.₱110,
000

Forit
ems46-47
Thestatementoff
inanci
alposi
ti
onofLesl
i
e,Mi
l
esandNi
col
ejustbef
oret
hel
i
qui
dat
ionshowst
he
fol
l
owi ng

Cash ₱5,
000 Account sPayabl
e ₱10,
000
Non-
Cashasset
s 60,
000 Nicole,Loan 10,
000
Lesli
e,Capital 15,
500
Miles,Capit
al 22,
000
Nicole,Capi
tal 7,
500

Tot
al ₱65,
000 Tot
al ₱65,
000

Lesl
ie,Mil
esandNicol
esharepr
ofi
tsandl
ossesi
nther
ati
oof3:
2:5,r
espect
ivel
y.Thenon-
cash
assetswer
esoldf
or₱40,000

46.Howmuchcashi
sav
ail
abl
efordi
str
ibut
iont
opar
tner
sinset
tl
ementoft
hei
rcapi
tal
bal
ances?
A.₱33,
450
B.₱34,
000
C.₱35,
000
D.₱37,
500
47.How muchcashi
srecei
vedbyNi
col
einf
ullset
tl
ementofhert
otali
nter
est
sint
hepar
tner
shi
p,
i
ncludi
ngloan?
A.₱7,500
B.₱9,500
C.₱10,500
D.₱18,000

Fori
tems48-50
Part
nersDesir
ee,AngelaandI r
ishwhoshar eprof
it
sandlossesi
ntherat
ioof2:
2:1,r
espect
ivel
y
deci
ded toli
quidate.The condensed st
atementoffi
nanci
alposi
ti
on i
mmediat
elypri
ortot he
l
iqui
dati
onshowst hefol
l
owing:

Cash ₱100,
000 Liabi
l
iti
es ₱140,
000
Non-
cashasset
s 400,
000 Desir
ee,Loan 10,
000
Desir
ee,Capital 45,
000
Angela,Capi
tal 105,
000
Ir
ish,
Capital 200,
000

Tot
al ₱500,
000 Tot
al ₱500,
000

Aft
erpayingl
iabi
li
ti
estopartner
shi
pcredi
tor
s,cashof₱207,500isavai
labl
efordist
ri
buti
ont
o
par
tner
s.Anycapit
aldef
ici
encyismadegoodbyt hedef
ici
entpar
tner
,si
nceallt
hreepart
ner
sar
e
per
sonall
ysol
vent
.

48.Howmuchwast hel
ossonr
eal
i
zat
ion?
A.₱140,
000
B.₱145,
550
C.₱150,
500
D.₱152,
500

49.HowmuchwouldAngel
arecei
vei
nfi
nal
set
tl
ementofheri
nter
est
?
A.₱44,
000
B.₱48,
000
C.₱52,
000
D.₱61,
000

50.HowmuchwouldI
ri
shr
ecei
vei
nfi
nal
set
tl
ementofheri
nter
est
?
A.₱168,
000
B.₱169,
500
C.₱171,
050
D.₱173,
000

Foritems51-
52
BrunoandMar sarepartners.Theyshar eprofit
sandl ossesinther at
ioof3: 7,respecti
vel
y.The
businesshasbeenencounteri
ngfinanci
aldiff
icul
tieslat
ely
.Thepartnersther
efore,mut ual
l
yagreed
toli
quidat
ethebusi
ness.Immediatelybefor
el i
quidati
onproceedi
ngsstart
edonMar ch31,2013,the
l
edgeraccountsoft
hepartnersshowedt hefol
lowingbalances:

Debi
t Cr
edi
t
Br
uno,
Drawing ₱30,
000
Br
uno,
Capit
al ₱280,
000
 Mar
s,Drawing 40,
000
Mar
s,Capit
al 400,
000

Atthisti
me,therecordsshow thatthetotalpart
ner
shipassetsar
e₱910,000,ofwhich₱60,
000is
cash.Aft
erthenon-cashasset
swer esoldandt hecashsett
lementwascompleted,Mar
swastry
ing
tofi
gureoutwhyher ecei
vedonl
y₱66, 000.

51.Howmuchwast hegai
norl
ossonr
eal
i
zat
ion?
A.₱420,
000,
gain
B.₱420,
000,l
oss
C.₱430,
000,
gain
D.₱430,
000,
loss

52.Howmuchwast hecashset
tl
ementt
oBr
uno?
A.₱123,
000
B.₱124,
000
C.₱125,
000
D.₱127,
000

Foritems53- 55
Nicole,Rio,Ail
ilandKarenarepart
ner
sshari
ngpr
ofi
tsi
nther
ati
o3/
21,4/
21,6/
21and8/
21,
respecti
vely
.Theircapi
tal
bal
ancesar
easfol
l
ows:

Ni
col
e ₱10,
000 Ai
li
l ₱250,
000
Ri
o 250,
000 Kar
en 90,
000

Thepart
nersdecidet oli
quidate.Theyconver
tedt henon-
cashasset
sinto₱233,000cash.Af
ter
pay
ingtheliabi
l
iti
esamount ingt o₱30,000,t
heyhav e₱222,000todiv
ide.Assumethatadebit
bal
anceofanypartner
'scapi
talaccounti
suncoll
ect
ible.

53.Howmuchwastheamountofcashbef
oret
heconv
ersi
onofnon-
cashasset
s?
A.₱19,
000
B.₱22,
000
C.₱25,
000
D.₱32,
000

54.Howmuchwast hebookv
alueoft
henon-
cashasset
s?
A.₱611,
000
B.₱623,
000
C.₱712,
000
D.₱733,
000

55.Howmuchwasr ecei
vedbyRi
oinf
inal
set
tl
ement
?
A.₱138,
800
B.₱168,
220
C.₱127,
330
D.₱178,
000

Forit
ems56- 57
Ryan,Iv
anandMar kar
epart
nersshari
ngprofi
tsandl ossesintherati
oof1:
1:2,r
espect
ivel
y.They
deci
dedt oli
quidat
ethebusi
ness.Theassetswer esoldandliabi
l
iti
esamount
ingto₱20,000wer e
pai
d.Atthispoi
nt,t
hecapi
tal
balancesoft
hepartnersareasfol
lows:
 Debi
t Cr
edi
t
Ryan ₱20,
000
I
van ₱15,
000
Mark 30,
000

I
vani
sper
sonal
l
yinsol
vent

56.Howmuchisthecashav
ail
abl
efordi
str
ibut
iont
opar
tner
s?
A.₱15,
000
B.₱35,
000
C.₱55,
000
D.₱65,
000

57.Howmuchcashwouldr
ecei
vebyRy anandMar
k?
A.₱21,
667and₱43,
333,
respecti
vely
B.₱20,
000and₱30,
000,
respecti
vely
C.₱15,
000and₱20,
000,respect
ivel
y
D.₱11,
667and₱23,
333,
respecti
vely

58.ConnieandMiri
am ar
epartnersshari
ngprof
it
sandl ossesint herat
ioof7:3,respect
ivel
y.On
October1,
2013,
theydeci
dedt
ol i
quidat
ethebusi
nesswhent heaccountbal
ancesare:

Cash ₱50,
000 Li
abil
i
ties ₱50,
000
Non-
Cashasset
s 150,
000 Conni
e, Capi
tal 90,
000
Mir
iam, Capi
tal 60,
000

Tot
al ₱200,
000 Tot
al ₱200,
000

Dur
ingt
hesamemont
h,t
henon-
cashasset
swer
esol
dfor₱100,
000.

Af
terpayi
ngtheli
abi
l
iti
es,ConnieandMi riam,i
nfi
nalset
tl
ementoft
hei
rint
erestwoul
drecei
vecash
of
A.₱105,
000and₱45, 000,respecti
v el
y
B.₱90,
000and₱60,000, r
espect i
vely
C.₱55,
000and₱45, 000,respectively
D.₱70,
000and₱30,000, r
espect i
vely

59.Li
to,RayandRonni edeci dedtoliqui
datethei
rpartnershi
p.Non-cashasset
sweresoldf or
₱128,
000andallcredit
orswer epaid.Prof
itshar
ingrati
oswer e:20%,30% and50%,r
espect
ivel
y.
Bal
ancesi
neachcapitalaccountbef
oreandaftert
hesalefol
low:

Li
to Rey Ronnie
Befor
ethesal
e ₱48,
000 ₱12,
000 ₱62,000
Aft
erthesal
e 32,
800 10,
800 24,000

Thecarr
yingamountoft
heasset
ssol
dis_
___
___
A.₱60,400
B.₱182,400
C.₱195,600
D.₱204,000
Fori
tems60-61
Part
nersArnieandJov ywhohav ebeendi
vidi
ngprofi
tsandlossesintherat
ioof3:2,r
espect
ivel
y
deci
dedt oli
qui
datetheirpart
nershi
p.Capi
talbal
ancesbeforeli
qui
dat
ionwas:Anni
e,₱40,000;and
Jovy,₱30,
000.Aft
erpayinginful
lli
abi
li
ti
esof₱30,
000,theyhave₱49,
000cashtodi
vide.

60.Howmuchwasthel
ossonr
eal
i
zat
ion?
A.₱9,
000
B.₱21,
000
C.₱51,
000
D.₱89,
000

61.I
nful
lsett
lementoft
hei
requi
ties,AnnieandJov
ymustr
ecei
vecashof_
___
___
A.₱40,000and₱30,
000,r
espect i
vely
B.₱29,
400and₱19,600,r
espect i
vely
C.₱27,400and₱21,
600,respectivel
y
D.₱9,
400and₱9,600,r
espectivel
y

Fori
tems62- 63
I
napar tnershi
pl i
qui
dati
on,bal
ancespriortothedist
ri
but
ionofcashtothepart
ner
sare:Cash,
₱240,000;Mi kee,Capi
tal
,₱112,000;Teeny,Capi
tal
,₱104,
000;andJenny
,Capi
tal
,₱24,
000.The
i
ncomer atiois6:2:
2,r
espect
ivel
y.

62.Howmuchcashshoul
dbedi
str
ibut
edt
oMi
kee?
A.₱100,
000
B.₱109,
000
C.₱112,
000
D.₱120,
000

63.Assumethatther
eisonly₱204,
000i
ncashandJennyhasacapi
taldef
ici
encyof₱12,
000.How
muchcashshouldbedist
ri
butedt
oTeeny
?
A.₱98,
000
B.₱101,000
C.₱95,
000
D.₱104,
000

Foritems64-65
Lorna,Ai
daandFedecidedtodissol
vethei
rpar
tnershi
ponAugust31,2013.Theyhavebeendivi
ding
profi
tsandlossesi
ntherat
ioof40%;30%;30%,respect
ivel
yandt
hei
rcapitalbal
ancesasofJanuary
1,2013wereasf ol
l
ows:

Lorna ₱75,
000
Aida 90,
000
Fe 30,
000

Theoper
ati
onsofthepartner
shipfortheperi
odJanuary1-August31r
esul
tedt
oapr
ofi
tof₱66,
000.
AsofAugust31,
2013,cashbalanceis₱60,000andtheli
abi
li
ti
esare₱135,
000.

64.Thetot
alpartner
shi
passet
sasofAugust31,
2013ar
e__
___
___
A.₱396,000
B.₱336,000
C.₱330,000
 D.₱261,
000

65.ForLornat
orecei
ve₱60,
000i
nfi
nalset
tl
ementofherequi
ty,t
henon-
cashasset
smustbesol
d
for_
_____
__
A.₱157,
500
B.₱232,
500
C.₱255,
000
D.₱358,
500

66.D, TandM Par t

nershipbecamei nsolventonDecember31,2013andi stobel iqui
dated.D,Tand
M hav ethefol
lowingcapitalbal
ancesr especti
vel
y,₱65,
000;(₱30,000)
;(₱4,000).Afterpayi
ngt hei
r
personalli
abi
li
ti
es,Dhad₱10, 000whi leThad₱15, 000ofthei
rpersonalassets.Howev er
,M hadst i
l
l
unpaidpersonall
iabi
li
ti
esamount ingto₱40, 000andhispersonalasset
samount edonl yto₱30,000.
Thepar t
nersshareprofi
tsandlossesequal l
y.

Howmuchist
hemaxi
mum amountt
hatDcanexpectt
orecei
vef
rom t
hepar
tner
shi
p?
A.₱31,
000
B.₱35,
000
C.₱46,
000
D.₱61,
000

67.DD,EEandFFdeci dedt odissolvethepartner

shiponJuly31,2013.Theircapi
talbal
ancesand
prof
itrat
ioonthisdatefol
low:DD,₱33, 600(45%);EE,₱43,
200(25%);FF,₱19,200(30%).Thenet
i
ncomef rom Januar
y1t oJuly31,2013was₱7, 200.Also,onthi
sdat e,cashandl i
abi
l
iti
eswere
₱25,200and₱34,800,r
especti
vely.FFreceiv
ed₱24,960inful
lset
tl
ementofhi si
nter
est.

Whi
chofthefoll
owingst
atement si str
ue?
A.₱115,200wasr eali
zedf r
om t hesaleofnon-
cashasset
s
B.DDr ecei
ved42,240i nfullsettl
ementofhisint
erest
C.₱124,800wast het ot
aldistri
buti
ont ot
heoutsi
dersandtot
hepar
tner
s
D.EE'sshareint
hel ossonr eali
zationwas₱3,000

68.Theaccountsoft
hepart
ner
shi
pofRey
es,Sant
iagoandTor
resatt
heendofi
tsf
iscaly
earon
November30,2013ar
easfol
l
ows:

Cash ₱103,
750 Li
abil
it
ies ₱262,
500
Othernon-
cashasset
s 707,
500 Loanfrom Sant
iago 20,
000
LoantoReyes 15,
000 Reyes,Capi
tal(
30%) 266,
250
Santi
ago,Capit
al(50%) 136,
250
Torr
es,Capit
al(20%) 141,
250

Tot
alAsset
s ₱826,
250 Tot
alAsset
s ₱826,
250

Sant
iagor
ecei
ved₱50,
000i
nset
tl
ementofhi
sequi
ty.

Whi
chofthefoll
owingst
atementsisincorr
ect?
A.Totalamountdist
ri
butedtopartnersis₱336,
250
B.Totalamountpaidtocredi
torsis₱262,500
C.Totalamountreali
zedfrom thenon-cashasset
sis₱598,
750
D.Reyesreceiv
edanamountequal t
o₱187, 500

69.OnJanuar
y31,2013,ACJPar
tner
shi
pent
eredi
ntol
i
qui
dat
ion.Thepar
tner
s'pr
ofi
tshar
ingand
capi
talbal
ancesont hisdatewereasfol
lows:Ali
cia(25%)
,₱2,500,000;Celi
ne(35%),₱5,400,
000;
Jessi
ca(40%),₱3,700,
000.Thepart
ner
shi
phasliabi
li
ti
esamount i
ngt o₱4,400,
000,i
ncludi
ngaloan
fr
om Celi
ne₱600,000.Cashonhandpri
ort
ot hel
iqui
dati
onprocessis₱800,000.

Non-cashasset
samounti
ngto₱7,400,000wer
esol
datt
hei
rcar
ryi
ngamountandt
her
estoft
henon-
cashassetsweresol
datalossof₱4,200,
000.

29.Howmuchcashwi ll
bedi
str
ibut
edt
othepar
tner
s?
A.₱4,
400,
000
B.₱7,
400,
000
C.₱8,
000,000
D.₱11,
800,000

70.OnJanuar y1,2013,ACJPartnershi
penteredint
ot heli
quidati
on.Thepar t
nershipcapit
albal
ances
ont hi
sdat ewereasf ol
lows:Angela(25%),₱2,500,000;Cri
stine(35%),₱5,400,000;Jechel
le(40%),
₱3,700,000.Thepartner
shiphasl i
abil
i
tiesamountingt o₱4,400,000,i
ncludingal oanfrom Cr
isti
ne
₱600,000.Cashonhandbef orethestartofl
iqui
dati
oni s₱800,000

Cr
ist
iner
ecei
ved₱2,
255,
000i
nful
lset
tl
ementofheri
nter
est
.

Howmuchwasthelossf
rom t
her
eal
i
zat
ionoft
henon-
cashasset
s?
A.₱5,
255,
000
B.₱9,
945,
000
C.₱10,
525,
000
D.₱10,
700,
000

71.Thecondensedst
atementoff
inanci
alposi
ti
onofRi
ver
a,Rey
esandRosal
espar
tner
shi
pasof
March31,
2013f ol
l
ows:

Cash ₱28,
000 Li
abil
iti
es ₱48,
000
Non-
cashasset
s 265,
000 Ri
vera,Capital 95,
000
Reyes,Capit
al 80,
000
Rosales,Capit
al 70,
000

Tot
alAsset
s ₱293,
000 Tot
alEqui
ty ₱293,
000

Profitandl ossr ati

oi s50:25:25,respecti
vel
y.Thepar t
ner
sv otedtodi
ssolvethepart
nershi
pand
l
iquidatebysel l
ingt heassetsininstal
ments.₱70,000werereal
i
zedonthefi
rstcashsal
eofnon-cash
assetswhi chhasabookv alueof₱150, 000.Af
tersettl
ementwithcr
edi
tor
s,allcashavai
l
ablewas
dist
ributedtopar tners.Howmuchcashdi dRosalesrecei
ve?
A.₱10, 500
B.₱20, 000
C.₱32, 500
D.₱21, 250

72.Thest
atementoffi
nancialposi
ti
onofthepartner
shi
pofDesir
ee,Debor
ahandDext
erwhoshar
e
i
ntheprof
it
sandlossesintherati
oof5:
3:2,r
especti
vel
yisasf
oll
ow:

Cash ₱30,
000 Li
abil
iti
es ₱50,
000
Otherasset
s 320,
000 Desi
ree,Capit
al 80,
000
Deborah,Capi
tal 115,
000
Dext
er,Capit
al 105,
000
 Tot
alAsset
s ₱350,
000 Tot
alEqui
ty ₱350,
000

Thepart
nersagreedtol i
qui
datethepartnershipbyi nst al
ment .I
mmedi ately
,ther
ewasareal
izati
onof
₱100,
000cashi nselli
ngotherassetswi thbookv alueof₱150, 000.Ont hecashavai
l
abl
e,pr i
ori
tyi
s
thepaymentofliabil
i
tiesandthebal anceist obedi str
ibutedtopartners.How ther
emainingcash
shoul
distobedistri
buted?
A.Desi
ree,₱50,000;Deborah,₱30,000; Dexter, ₱20,000
B.Desi
ree,₱40,000;Deborah,₱24,000; Dexter, ₱16,000
C.Desi
ree,₱0; Debor
ah,₱48,000; Dexter,₱32, 000
D.Desir
ee, ₱0,Deborah,₱31,
000; Dext er,
₱49, 000

Forit
ems73-75
Theassetsandequi
ti
esofSabi
do,
Sant
osandSomi
dopar
tner
shi
patt
heendofi
tsf
iscaly
earended
October31,
2019areasf
oll
ows:

Cash ₱15,
000 Li
abil
it
ies ₱50,
000
Receivabl
e-net 20,
000 Loanfrom Somido 10,
000
Invent
ory 40,
000 Sabi
do, Capit
al(
30%) 45,
000
Property,
PlantandEqui
pment 70,
000 Sant
os, Capit
al(50%) 30,
000
LoantoSant os 5,
000 Somido, Capi
tal
( 20%) 15,
000

Tot
al ₱150,
000 Tot
al ₱150,
000

Thepart
nersdecidedt
oli
quidatethepar
tner
ship.Theyest
imatedt
hatthenon-
cashassetsothert
han
thel
oant oSantoscanbeconv er
tedto₱100,000cashoverthetwo-
monthperiodendingDecember
31,2019.Cashi stobedistr
ibutedtotheappr opr
iat
epart
iesasitbecomesav ai
lableduri
ngthe
l
iqui
dati
onprocess.

73.Whoamongt hepar
tner
sis/
aremostv
ulner
abl
etopar
tner
shi
plossesonl
i
qui
dat
ion?
A.Sabi
do
B.Sant
os
C.Somido
D.Sabi
doandSantosequal
ly

74.I
f65,
000ar
eav ail
abl
eforthefi
rstdi
stri
bution,
itshouldbepaidto____
___
_
A.Cr
edi
tor
s, ₱60,
000;Sabido,₱5,000;Santos,₱0;Somido,₱0
B.Cr
edi
tor
s,₱50,000;Sabi
do,₱12,000;Santos,₱0;Somido,₱3,000
C.Cr
edi
tor
s,₱60,000;Sabi
do,₱1,500;Santos,₱2,500;
Somi do,
₱1,000
D.Cr
edi
tor
s, ₱50,
000;Sabi
do,₱5,000;Santos,₱0;Somido,₱10,000

75.I
fatotalamountof₱7, 500isavail
ablef ordist
ri
buti
ont
opar
tner
saf
teral
lout
sidel
i
abi
l
iti
esar
e
pai
d,i
tshouldbepaidasfoll
ows:
A.Sabido,₱7,
500;Santos;₱0;Somi do, ₱0
B.Sabido,
₱0;Santos,₱3,750;
Somi do, ₱3,
750
C.Sabido,
₱2,250;
Sant os,₱3,
750;Somi do,₱1,500
D.Sabido,
₱2,500;
Sant os,₱2,
500;Somi do,₱2,500

76.Pepi
to,Patr
ickandTommyhav ecapi
talbal
ancesof₱40,
000,₱50,
000and₱18,000,respect
ively
andaprofitshari
ngrati
oof4:2:
1,r
especti
vel
y.IfPepi
tor
ecei
ved₱8,000uponl
iquidat
ion,thetotal
amountrecei
vedbyallpart
ner
swas______
___
 A.₱108,
000
B.₱56,
000
C.₱24,
000
D.₱52,
000

77.Assumethesamefactsi
nNo.76exceptt
hatPepi
torecei
ved₱26,
000asar
esul
toft
hel
i
qui
dat
ion.
Howmuchwast heamountr
ecei
vedbyTommyaspar toftheli
qui
dat
ion?
A.₱26,000
B.₱18,000
C.₱14,500
D.₱14,000

78.Cel
ine,
SarahandBiancaar
epartner
sshari
ngprof
it
sandlossesi
ntherat
ioof4:
3:3,
respect
ivel
y.
Thecondensedst
atementoffi
nanci
alposi
ti
onofCSBPart
ner
shipasofDecember1,
2019is

Cash ₱50,
000 Li
abil
iti
es ₱40,
000
Otherasset
s 130,
000 Cel
ine,Capital 60,
000
Sar
ah, Capit
al 40,
000
Bi
anca, Capi
tal 40,
000
Tot
alAsset
s ₱180,
000 Tot
al Equit
y ₱180,
000

TheCSBPar tner
shipwasdi ssol
vedandl i
qui
datedbyi nstal
ment s.Thef i
rstr
eal
i
zat
ionof₱40,000
cashwasont hesaleofotherasset
swi t
hbookv alueof₱80, 000.Aftert
hepaymentofl
iabi
l
iti
es,
the
cashavai
l
ableisdist
ri
butedtoCeli
ne,SarahandBianca,respecti
velyasfol
lows:
A.₱36,000;₱27,
000;₱27,000
B.₱16,000;₱12,
000;₱12,000
C.₱44,000;₱28,
000;₱28,000
D.₱24,000;₱13,000;₱13,
000

79.Aft
eral
lnon-cashassetshavebeenconver
tedint
ocashi ntheli
qui
dat
ionoft
hePat
ri
ciaand
Mari
epart
nershi
p,thel
edgercont
ainst
hef
oll
owingaccountbal
ances:

Debi
t Cr
edi
t
Cash ₱47,
000
AccountsPay abl
e ₱32,
000
LoanPay abl
et oPat
ri
cia 15,
000
Patr
ici
a,Capital 7,
000
Marie,
Capi t
al 7,
000

Av
ail
ablecashshouldbedist
ribut
edwith₱32,000goi
ngt
oaccount
spay
abl
eand
A.₱7,000toPatr
ici
aand₱8, 000toMarie
B.₱7,500eachtoPatri
ciaandMarie
C.₱8,000toPatr
ici
aand₱7, 000toMarie
D.₱15,000totheloanpayabletoPatr
ici
a

80.MamaandPapaf ormedapar t
ner
shi
ponJuly1,2019.Theyi nvest
ed₱30,000and₱40,000and
agreedtoshareprofi
tsandlosses60%and40%,
respect
ivel
y.Allthei
rtr
ansact
ionswer
eforcashand
al
ltheirsubsequenttr
ansacti
onswerehandl
edt
hroughtheirrespecti
vebankaccount
ssummar i
zed
asfoll
ows:

Mama Papa
Cashr
ecei
pts ₱79,
100 ₱65,
245
 Cashdi
sbur
sement
s 62,
275 70,
695

OnOct ober31,2019,thepar
tner
shipwasdissol
vedandallt
heremai
ningnon-cashasset
sweresol
d
forcashof₱60, 000andcashset
tlementwaseff
ected.Howmuchwast hecashrecei
vedbyMama?
A.₱24,000
B.₱26,
000
C.₱34,000
D.₱36,000

DISCLAI
MER:SOMEQUESTIONSPROVI DEDINTHISMATERIALWEREADAPTEDFROM DI FFERENT
AUTHORS AND PROFESSORS OF BASIC ACCOUNTI
NG.THIS DOCUMENT SHALL SERVE AS A
REVIEW MATERI
ALONLYANDDONOTUSETHI SFORANYUNNECESSARYACTSSUCHSENDI NG
THISTOOTHERSI NEXCHANGEOFPAYMENT.THEAUTHOROFTHI SMATERIALWANTSTOHELP
THOSESTUDENTSWHO HAVEDI FFI
CULTIESIN UNDERSTANDI
NG ACCOUNTING TOPI
CS.ALSO,
THISMATERIALWI LLSOMEHOW HELP STUDENTSI NIMPROVING THEI
R KNOWLEDGEI N THE
WORLDOFACCOUNTI NG.GOODLUCKANDGODBLESS

Pr
epar
edby :
NIXOND.TORRESJR.
Bachel
orofSciencei
nAccountancy(
BSA)st
udent
SanMateoMuni ci
palCol
lege
TESDANCIIIBookkeepi
ngPasser