1.

At December 31, RR and SH are partners with capital balances of P40,000 and
P20,000, and they share profits and losses in the ratio of 2:1, respectively. On
this date, PP invests P17,000 in cash for a one-fifth interest in the capital and
profit of the new partnership. Assuming that the bonus method is used, how
much should be credited to PP's capital account on December 31?
15,400

2. Bill, Page, Larry, and Scott have decided to terminate their partnership. The
partnership's balance sheet at the time they decide to wind up is as follows…
…During the winding up of the partnership, the other assets are sold for
P150,000 and the accounts payable are paid. Page and Larry are personally
solvent, but Bill and Scott are personally insolvent. The partners share profits and
losses in the ratio of 4:2:1:3. What amount will be distributed to Larry upon
liquidation of the partnership?
100,000
3. Bill, Page, Larry, and Scott have decided to terminate their partnership. The
partnership's balance sheet at the time they decide to wind up is as follows…
… During the winding up of the partnership, the other assets are sold for
P150,000 and the accounts payable are paid. Page and Larry are personally
solvent, but Bill and Scott are personally insolvent. The partners share profits and
losses in the ratio of 4:2:1:3. What amount will be paid out to Scott upon
liquidation of the partnership?
2,500
4. Bill, Page, Larry, and Scott have decided to terminate their partnership. The
partnership's balance sheet at the time they decide to wind up is as follows…
… During the winding up of the partnership, the other assets are sold for
P150,000 and the accounts payable are paid. Page and Larry are personally
solvent, but Bill and Scott are personally insolvent. The partners share profits and
losses in the ratio of 4:2:1:3. What amount will be paid out to Bill upon liquidation
of the partnership?

5. Bill, Page, Larry, and Scott have decided to terminate their partnership. The
partnership's balance sheet at the time they decide to wind up is as follows…
… During the winding up of the partnership, the other assets are sold for
P150,000 and the accounts payable are paid. Page and Larry are personally
solvent, but Bill and Scott are personally insolvent. The partners share profits and
 losses in the ratio of 4:2:1:3. What amount will be distributed to Page upon
liquidation of the partnership?

110,000

6. Manila Corporation has operated a branch in Cebu for one year. Shipments are
billed to the branch at cost. The branch carries its own accounts receivable,
makes its own collections, and pays its own expenses. The transactions for the
year are given effect to in the trial balance below:
7. Pasig Garment Company operates a branch in Cabanatuan City. At the end of
the year, the Branch account in the books of the home office at Manila shows a
balance of P150,000. The following information is ascertained:
a. The home office has billed the branch the amount of P20,500 for the
merchandise, which was in transit on December 31.
b. A branch accounts receivable for P10,500 was collected by the home office.
Said collection was not reported to the branch by the home office.
c. Supplies of P4,500 was returned by the branch to the home office but the
home office has not yet reflected in its records the receipt of the supplies.
d. The branch made profit of P10,100 for the month of December but the home
office erroneously recorded it as P11,000
What is the adjusted balance of the Home office account on the books of the
branch as of December 31?
134,420

8. Pasig Garment Company operates a branch in Cabanatuan City. At the end of

the year, the Branch account in the books of the home office at Manila shows a
balance of P150,000. The following information is ascertained:
a. The home office has billed the branch the amount of P20,500 for the
merchandise, which was in transit on December 31.
b. A branch accounts receivable for P10,500 was collected by the home office.
Said collection was not reported to the branch by the home office.
c. Supplies of P4,500 was returned by the branch to the home office but the
home office has not yet reflected in its records the receipt of the supplies.
d. The branch made profit of P10,100 for the month of December but the home
office erroneously recorded it as P11,000
What is the balance of the Home office account on the books of the branch as of
December 31, before adjustments?
154,920

9. The following account balances was taken from the books and records of
Bulacan Company and its branch on December 31,20x5
a. The rate of mark-up on cost that the home office uses bill merchandise
shipped to the branch is:
25.00%
b. The beginning inventory of the branch acquired from the home office is?
24,000
c. The realized profit from sales made by the branch is
89,040
10. The following data were taken from the records of Luzon Corporation of Manila
and its Rizal branch for 20x5:
a. The true branch income (loss) in so far as the home office is concerned is:
 9,990
a. The combined net income of the home office and the branch is:
67,690
11. The following information is extracted from the books and records of Pinoy
company and its branch. The balances are at December 31, the fourth year of
the company’s operations:
a. The true branch net income is:
66,000
12. The Manila Branch of the Great Company is billed for merchandise by the
home office at 20% above cost. The branch in turn, prices merchandise
for sales purposes at 25% above billed price. On February 29, all of the
branch merchandise is destroyed by fire. No insurance was maintained.
Branch accounts show the following information:
Merchandise inventory, January 1 (at billed price) . . . . . . . . . .
P
26,400
Shipments from home office (January 1 - February 29) . . . . . . . .
20,000
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15,000
.
Sales returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,000
Sales allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,000
What was the cost of merchandise destroyed by fire?

a.
P36,000
c.
P36,800
b.
P30,667
d.
P30,000

13. Hara, Ives, and Jack are in the process of liquidating their partnership. Since it
may take several months to convert the other assets into cash , the partners agree
to distribute all available cash immediately, except for 10,000 that is set aside for
contingent expenses. The balance sheet and residual profit and loss sharing
percentage are as follows:

How much should ives receive in the first distribution?

- 147,000
14. On 1/1/20x4, the partners Perry, Quincy, and Remquist, who share profits and
losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. On
this date, the partnership condensed balance sheet was as follows:
Eddy-0
Perry- 15,000
Quincy-51,000

15. On June 30, 20x4, the warle, xin and yates

a. The book value of the partnership equity(i.e total equity of the partners) on
june 30, 20x4 is = 29,000

b. The cash available for distribution to the partners on July 30, 20x4 = 2,000
c. How much cash would xin received from the cash that is available for
distribution on July 31? = 2,000

d. How much cash would yates received from the cash that is available for
distribution on July 31? = 0

16. Scott, joe, and ed are liquidating their partnership.

a. What is the loss absorption power with respect to scott = 495,000

17. Donkey desires to purchase a one fourth capital and profit and loss interest in the
partnership of shrek, Fiona, and muffin
a. What is the balance of muffin after the admission = 45,000

18. Larry, marsha, and natalie are partners in a company that is being liquidated
a. What is the balance in natalie’s capital account after the transaction is
complete = 56,750

19. Pink desires to purchase as one fourth capital and profit and loss interest in the
partnership of brown, greene, and red.
a. Immediately after pink’s acquisition, what should be the capital balances of
red? = 45,000

20. The balance sheet for the partnership of nina, pinta, and santa maria at jan. 1,
20x4 follows
a. What is the balance of pinta’s capital account after nina’s retirement =
120,000