1.

The business assets and liabilities of John and Paul appear

below:
 John  Paul
        
Cash          11,000.00
22,354.00
      
Accounts Receivable        234,536.00
567,890.00
      
Inventories        120,035.00
260,102.00
Land        603,000.00  -
      
Building  -
428,267.00
        
Furniture and fixtures          50,345.00
34,789.00
Other Assets           2,000.00           3,600.00
   
Total     1,020,916.00
1,317,002.00

      
Accounts Payable        178,940.00
243,650.00
      
Notes Payable        200,000.00
345,000.00
John, Capital        641,976.00  -
      
Paul, Capital  -
728,352.00
   
Total     1,020,916.00
1,317,002.00

John and Paul agreed to form a partnership contributing their respective assets and
equities subject to the following adjustments:

a. Accounts receivable of P20,000 in John's books and P35,000 in Paul's are

uncollectible.
b. Inventories of P5,500 and P6,700 are worthless in John's and Paul's
respective books.
c. Other assets of P2,000 and P3,600 in John's and Paul's respective books are to be
written off.
The capital account of the partners after the adjustments
will be: 5pts
 
 

2. Aldo, Bert, and Chris formed a partnership on April 30, with the following assets,
measured at their fair values, contributed by each partner:
Aldo  Bert  Chris
        
Cash                    10,000.00          12,000.00
30,000.00
Delivery
                  150,000.00          28,000.00  -
trucks
Computers                      8,500.00           5,100.00  -
Office
 -           3,500.00   2,500.00
furniture
                         168,500.00             48,600.00 32,500.00
Although Chris has contributed the most cash to the partnership, he did not have the
full amount of P30,000 available and was forced to borrow P20,000. The delivery
truck contributed by Aldo has a mortgage of P90,000 and the partnership is to
assume responsibility of the loan. The partners agreed to equalize their interest. Cash
settlement among the partners are to be made outside the partnership. Using the
Bonus Method, choose the correct answer and show your solution. 5pts
a. Bert and Chris should pay Aldo, P4,600 and P20,700
respectively.
b. Aldo should pay Bert and Chris, P25,300.
c. Bert should pay Aldo, P25,300 and Chris,
P20,700.
d. Chris should pay Aldo, P25,300 and Bert,
P4,600.

3. Cong and Viy have just formed a partnership. Cong contributed cash of P126,000
and computer equipment that cost P54,000. The computer had been used in his sole
proprietorship and had been depreciated to P24,000. The fair value of the equipment
is P36,000. Cong also contributed a note payable of P12,000 to be assumed by the
partnership. Cong is to have 60% interest in the partnership. Viy contributed only
P90,000 cash.
Cong should make an additional investment (withdrawal) of: 5pts

4. JJ and KK are partners who share profits and losses in the ratio of 60%: 40%,
respectively. JJ's salary is P60,000 and P30,000 for KK. The partners are also paid
interest on their average capital balances. In 2019, JJ received P30,000 of interest and
KK, P12,000. The profit and loss allocation is determined after deductions for the
salary and interest payments. If KK's share in the residual income (income after
deducting salaries and interest) was P60,000 in 2019, what was the total partnership
 

5. HH, MM, and AA formed a partnership on January 1, 2020, and contributed

P150,000, P200,000, and P250,000, respectively. Their articles of co-partnership
provide that the operating income be shared among the partners as follows: salary,
P24,000 for HH, P18,000 for MM, and P12,000 for AA; interest of 12% on the average
capital during 2020 of the three partners; and the remainder in the ratio of 2:4:4,
respectively.
The operating income for the year ending December 31, 2020 amounted to P176,000.
HH contributed additional capital of P30,000 on July 1 and made a drawing of P10,000
on October1; MM contributed additional capital of P20,000 on August 1 and made a
drawing of P10,000 on October 1; and AA made a drawing of P30,000 on November 1.
The partners' capital balances on December 31,
2020 are: 10 pts

6. On January 2, 2020, Berlin and Oslo formed a partnership. Berlin contributed  

capital of P175,000 and Oslo, P25,000. They agreed to share profits and losses 80%  
and 20%, respectively. Oslo is the general manager and works in the partnership full
time and is given a salary of P5,000 a month; an interest of 5% of the beginning
capital (of both partner) and a bonus of 15% of net income before the salary, interest  
and the bonus.
The profit and loss statement of the partnership for the year ended December
31, 2020 is as follows:
Net Sales        875,000.00
Cost of goods sold -      700,000.00
Gross profit        175,000.00
Expenses (including the salary, interest and
-      143,000.00
the bonus)
Net Income          32,000.00
The amount of bonus to Oslo in 2020
amounted to: 5pts
 

7. Ay, Bee, and Ci are partners in an accounting firm. Their capital account balances at
year-end were Ay P90,000; Bee P110,000; and Ci P50,000. They share profits and
losses on a 4:4:2 ratio, after the following special terms:
1. Partner Ci is to receive a bonus of 10% of net income after the
bonus.
2. Interests of 10% shall be paid on that portion of a partner's capital in
excess of P100,000.
3. Salaries of P10,000 and P12,000 shall be paid to partners Ay & Ci
respectively.
Assuming a net income of P44,000 for the year, the total profit share
of Partner Ci was: 5pts