A.

Yeng, Rachelle and Sarah are partners in YRS Partnership with P/L ratio of 25%, 25% and 50%, beginning balances
of 500,000, 750,000 and 1,000,000 respectively. During the current year, Income Statement shows:
Net Sales 2,000,000
Operating expenses (including salaries
and interest) 1,250,000
Net Income 750,000
Partnership agreement includes the following:
 10% interest on beginning capital balances;
 Annual salaries of 45,000, 50,000, 96,000 to Yeng, Rachelle and Sarah respectively;
 Bonus of 20% to Yeng based on total partnership net income.
1. How much is the partnership income to be allocated to the partners?
2. How much is the share of partner Yeng in the partnership income?
3. How much is the share of partner Rachelle in the partnership income?
4. How much is the share of partner Sarah in the partnership income?
5. In case of net loss, which partner will have the smallest share in the partnership loss?

B. Partners Farrah, Glenn and Harmony share profits and losses 5:3:2, respectively, and their balance sheet on October
31, 2015 follows:
Cash P 160,000 Accounts payable P 400,000
Other assets 1,440,000 Farrah, Capital 296,000
Glenn, Capital 520,000
Harmony Capital 384,000

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P1,600,000 P1,600,000

er as
The assets and liabilities are recorded at their current fair value. Ian is to be admitted as a new partner with a 25%

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interest in capital and earnings. Glenn was credited a bonus of P9,000.
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1. How much cash should Ian contribute?

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C. A and B are partners with capital balances of 30,000 and 70,000 respectively. E has a 30% interest in profits and
losses. At this time, the partnership has decided to admit C and D as new partners. C contributes cash of 55,000 for a
20% interest in capital and a 30% interest in profits and losses. D contributes cash of 10,000 and equipment for a 25%
interest in capital and 35% interest in profits and losses.
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1. If bonus amounting to 18,250 is given to old partners, what is the value of the equipment contributed by D?
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D. Esmer, Estrel, Ellea and Elmer share profits in the ratio of 2:1:1:1. The partnership cannot meet its obligations to
y

creditors and dissolution is authorized on September 30, 2014. A statement of financial position for the partnership on
ed d

this date shows balances as follows:

Assets Liabilities & Capital
ar stu

Cash 90,000
Liabilities 265,000
Other Assets 400,000
Elmer, loan 25,000
Esmer, Capital 50,000
Estrel, Capital 50,000
is

Ellea, Capital 50,000

Elmer, Capital 50,000
Th

Total 490,000 Total 490,000

The personal status of partners on this date is determined to be as follows:
Partners Personal Assets Personal Liabilities
Esmer 250,000 150,000
sh

Estrel 100,000 150,000

Ellea 150,000 125,000
Elmer 200,000 250,000
The other assets of the partnership are sold and realized P120,000. Additional contributions by appropriate parties in
meeting the claims of the firm creditors were made.
1. The amount that will be paid to personal creditors of Esmer would be
2. Using the information in #1, the amount that will be paid to the personal creditors of Estrel would be
3. Using the information in #1, the amount that will be paid to the personal creditors of Elmer would be

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