1.

Presented below is the condensed balance sheet of the partnership of KK, LL and
MM who share profits and losses in the ratio of 6:3:1, respectively:
Cash                    85,000.00  Liabilities    80,000.00
Other                  
 KK, Capital  252,000.00
assets 415,000.00
 LL, Capital  126,000.00
 MM,
     42,000.00
Capital
                 
Total  Total  500,000.00
500,000.00
The partners agree to sell NN 20% of their respective capital and profit and loss
interests for a total payment of P90,000. The payment by NN is to be made directly to
the individual partners. The capital balances of KK, LL and MM, respectively after
admission of NN are: 5pts

2. Oliver and Twist are partners with capital balances P60,000 and P20,000,
respectively. Profits and losses are divided in the ratio of 60:40. Oliver and Twist
decided to form a new partnership with Gunther, who invested land valued at P15,000
for a 20% capital interest in the new partnership. Gunther's cost of the land was
P12,000. The partnership elected to use the bonus method to record the admission of
Gunther into the partnership. Gunther's capital account should be credited for:
5pts

3. On June 30, 2020, the statement of financial position for the partnership of CC,
Lelouch, and Nunnally, together with their respective profit and loss ratios, were as
follows:
      
Assets, at cost
180,000.00
CC, Loan           9,000.00
        
CC, Capital (20%)
42,000.00
Lelouch, Capital         
(20%) 39,000.00
Nunnally, Capital         
(60%) 90,000.00
      
Total
180,000.00
CC decided to retire from their partnership. By mutual agreement, the assets are to be
adjusted to their fair value of P216,000 at June 30, 2020. It was agreed that the
partnership would pay CC P61,200 cash for CC's partnership interest, including CC's
loan which is to be repaid in full. No goodwill is to be recorded. After CC's retirement,
what is the balance of Lelouch's capital account? 5pts

4. Partners Peter and Tony, who share equally in profits and losses, have the
following balance sheet as of December 31, 2019:
Accounts
Cash                   120,000.00  172,000.00
Payable
Accounts Receivable                   100,000.00 Accum. Dep'n      8,000.00
Inventory                   140,000.00 Peter, Capital  140,000.00
Equipment                    80,000.00 Tony, Capital  120,000.00
Total                   440,000.00  Total  440,000.00
They agreed to incorporate their partnership, with the new corporation absorbing the
net assets after the following adjustments: provision of allowance for bad debts of
P10,000; restatement of the inventory at its current fair value of P160,000; and
recognition of further depreciation on the equipment of P3,000. The corporation's
capital stock is to have a par value of P100, and the partners are to be issued
corresponding total shares equivalent to their adjusted capital balances.
The total par value of the shares of capital stock that were
issued to partners Peter and Tony was: 5pts

5. The following statement of financial position is presented for the partnership of  

David, Ebreo, and Franco who share profits and losses in the ratio of 5:3:2,
respectively:  
Cash                    60,000.00  Liabilities  140,000.00
Other Assets                   540,000.00  David, Capital  280,000.00
 Ebreo, Capital  160,000.00
   Franco, Capital    20,000.00
 Total                   600,000.00  Total  600,000.00
The partners decide to liquidate the partnership. If the other assets are sold for  
P400,000, how should the available cash be distributed to each partner? 5pts  

6. On December 31,2018, the accounting records of the STU Partnership

included the following ledger account balances:

 (Dr) Cr
 Sy, drawing -        24,000.00

Uy, drawing -         9,000.00

Ty, loan               30,000.00

Sy, capital        123,000.00

Ty, capital        100,500.00

Uy, capital        108,000.00

Total assets of the partnership amounted to P478,500, including P52,500 cash. The
partnership was liquidated on December 31,2018 and Uy received P83,250 cash
pursuant to the liquidation. Sy, Ty and Uy share profits and losses in a 5:3:2 ratio,
respectively. What is the loss on realization of assets and cash received by Sy,
respectively? 5pts

7. Pepe and Pilar started a partnership some years ago and managed to operate
profitably for several years. Recently however, they lost a substantial legal suit and
incurred unexpected losses on accounts receivable and inventories. As a result, they
decided to liquidate. They sold all assets and only P162,000 was available to pay
liabilities, which amounted to P297,000. Their capital account balances before the
liquidation and their profit and loss sharing ratios are shown below:

Pepe        207,000.00 60%

Pilar        121,500.00 40%

Pepe is personally insolvent after investing cash to pay the unpaid creditors, but Pilar
has personal assets in excess of P900,000. In the settlement to partners, how
much cash should Pepe receive? 5pts

8. A cash distribution plan (payment priority program) for the Matthew, Norell, and
Reams partnership appears below:
Priority Creditors  Matthew  Norell Reams
First P300,000 100%
Next P80,000 70% 30%
Next P70,000  3/7 4/7
Remainder 22% 34% 44%
If P550,000 of cash is to be distributed, how much will be received by the priority
creditors, Matthew, Norell and Reams? 5pts