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Course Audit Partnership PART 2
Course Audit Partnership PART 2
Course Audit Partnership PART 2
POST EXAMINATIONS
COURSE AUDIT
Name: Jennifer Vergara Date:______________________
Comprehensive
1. AA and AB are partners, sharing profits and losses equally. They decide to terminate
the partnership. Prior to realization, their capital balances are P150,000 and P70,000,
respectively. After all non-cash assets are sold, and all liabilities are paid, there is a cash
balance of P160,000.
2. A and B are partners who share profits and losses equally and have equal capital
account balances. The net assets of the partnership have a carrying amount of 80,000.
C is admitted to the partnership with a ⅓ interest in profits or losses and net assets. C
invested 34,000 cash to the partnership (Use Bonus Method)
3. Compute for the Capital Balances of A, B and C after the admission of C (15 pts.)
4. Blue and REd are partners, who share profits and losses in the ratio of 6:4, respectively.
On May 1, 2022, their respective capital accounts were as follows:
● Blue 60,000
● Rubi 50,000
On that date, Lind was admitted as a partner with one third interest in capital, and profits for an
investment of 40,000. The new partnership began with a total capital of 150,000. Immediately
after Lind’s admission, Blue’s capital should be at what amount?
5. The capital balances in DEA Partnership are: D, capital 60,000; E, capital 50,000 and A,
capital 40,000 and income ratios are 5:3:2, respectively. The Dear Partnership is formed
by admitting R to the firm with cash investment of 60,000 for a 25% interest in capital.
What is the amount of bonus credited to A capital in admitting R?
2. Claguaz and dela Cruz formed a partnership and invested the following asets and liabilities.
calague Fair value Carrying amount
Cash 300 000 300 00
land 450 000 280 000
⮚ Depreciation expense
Kim
500 000 750 350
⮚ Cash
15 000 11 350
⮚ furniture
Ethan
40 000 60 000
⮚ inventory
550 000 605 505
⮚ land
4. Thea and Macoy partnership have a profit of 1 500 000 and partnership agreed to distribute the
profit by 40:60. What will be the profit of both partner?
a. Thea 750 000
Macoy 750 000
b. Thea 600 000
Macoy 900 000
c. Thea 700 000
Macoy 800 000
d. Thea 650 000
Macoy 850 000
5. Mikkie, Honey, Lovely and Brad form a partnership in 2018 and they agree to distribute the
profit based on their original capital investment. What will be the profit of brad in 2020?
The profit in 2020 is 3 500 000.
Capital investment every year.
2018 2019 2020
Mikkie 1500 000 500 000 670 500
Honey 2500 000 450 000 234 500
Lovely 350 000 506 678 780 650
brad 500 000 90 500 670 055
a. 402 298.85
b. 502 298. 90
c. 400 300. 50
d. 504 393. 69
6. In 2020 the partnership of Gian, Marie and Impe will have a profit of 6 000 000 and agree
to distribute the profit based on the average investment. What is the profit of all partners?
Jan. 1, 2020 June 1, 2020 Dec. 1, 2020
Gian 500 000 305 000 250 000
Marie 300 000 550 000 50 000
Impe 250 000 400 000 150 000
8. On July 23, 1999, M and E formed a partnership and agreed to share profits and losses in the
ratio of 3:7 respectively. M contributed a parcel of land that costs 10 000. E contributed 40 000
cash. The land was sold to 18 000 on July 23, 1999, immediately after the formation of the
partnership. What amount should be recorded in E’s capital account on formation of the
partnership?
a. 15 000
b. 17 400
c. 10 000
d. 18 000
9. Partners Eliza and Colleen receive a salary of 150 000 and 300 000 respectively,and share
profit and losses in a 2:1 ratio, respectively. If the partnership suffered 150 000 loss in 2018, by
how much would Eliza’s account decrease?
a. 400 000
b. 250 000
c. 200 000
d. 100 000
10. A partner has a capital balance of 400 000 for five months, 500 000 for four months and
600 000 for three months. The average capital is. (4pts)
a. 483 333
b. 485 000
c. 471 680
d. 500 000
11. A, B, and C are partners. Their contributions are as follows: A, 600 000; B, 400 000 and C
services. The partnership agreed to divide profits and losses in the following percentages: A,
35%; B, 25% and C 40%. If there is a profit of 100 000, how should the profit be distributed
among partners?
a. A, 35 000; B, 35 000; C, 30 000
b. A, 30 000; B, 20 000; C, 50 000
c. A, 35 000; B, 25 000; C, 40 000
d. A, 60 000; B, 40 000; C, nothing
12. Partners A and B have a profit and loss agreement with the following provisions: salaries of
41,600 and 38,400 for A and B, respectively;a bonus to A of 10% of net income after salaries
and bonus; and interest of 10% on average capital balances of 20,000 and 35,000 for
A and B, respectively. One-third of any remaining profits are allocated to A and the balance to
B. If the partnership had a net income of 36,000, how much should be allocated to Partner A,
assuming that the provisions of the profit and loss agreement are ranked by order of priority
starting with salaries?
a. $12,000
b. $18,000
c. $18,720
d. $41,600
13. .Partners Tuba and Drum share profits and losses of their partnership equally after
1) annual salary allowances of $25,000 for Tuba and $20,000 for Drum and
10% interest is provided on average capital balances. During 20X1, the partnership had
earnings of 50,000; Tuba's average capital balance was 60,000 and Drum's average capital
balance was 90,000.
How should the 50,000 of earnings be divided?
Tub Drum
a. 26,000 24,000
b. 27,000 23,000
c. 25,000 25,000
d. 27,500 22,500