ACP 311: Assignment

Instructions: Please write your answers and solution (including all the journal entries) on a
one whole quiz sheet. Upload a copy of your assignment via Blackboard Link and bring your
answers on our next session. Any solution formatted just like online/offline reviewers will
receive ZERO (0) points for the whole problem.

PROBLEM 1

A, B and C formed a partnership on 1/1/2021 and had the following initial investments:
A - 100,000
B - 150,000
C - 225,000

Additional information:

1. On June 30, A invested additional cash of Php 60,000.

2. C did withdraw, on September 30, the amount of Php 70,000.
3. Share in the remaining profit of the partnership was Php 5,000 for each partner.

The partnership agreement indicated that they will divide the profits and losses equally after
the following considerations.

1. A, B and C, will be given a salary of Php 60,000, Php 48,000 and Php 36,000 respectively.
2. 10% interest shall be allowed of the partner’s average capital balances.

Required: Provide the total partnership capital at year end.

PROBLEM 2

Presented below is the condensed balance sheet of the partnership KK, LL and MM who share
profits and losses in the ratio of 6:3:1, respectively:

Cash 85,000 Liabilities 80,000

Other Assests 415,000 KK, Capital 252,000
LL, Capital 126,000
MM, Capital 42,000

TOTAL 500,000 TOTAL 500,000

The partners agree to sell NN 20% of their respective capital and profit and loss interests for a
total payment of Php 90,000. The payment of NN is to be made directly to the individual
partners.
Required: Compute for all the partners’ capital balance after the admission of NN.
PROBLEM 3

On June 30, 2021, the balance sheet of the partnership of CC, MM and PP, together with their
respective profit and loss ratios, were as follows:

Assets, at cost 180,000

CC, Loan 9,000

CC, Capital (20%) 42,000
MM, Capital (20%) 39,000
PP, Capital (60%) 90,000

CC decided to retire from the partnership. By mutual agreement, the assets are to be adjusted
to their value of Php 216,000 at June 30, 2021. It was agreed that the partnership would pay CC
Php 61,000 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 are the remaining partners’ capital
balances?

PROBLEM 4

The partnership has the following accounting amounts:

(1) Sales 71,000

(2) COGS 40,000
(3) OpEx 12,000
(4) Salary Allocation to Partners 10,500
(5) Interest paid to banks 2,200
(6) Partners’ Withdrawals 8,000

What is the partnership’s income (loss)?