11.

Maria and Nora entered into a partnership on March 1,2023 by investing the following assets:
Maria Nora
Cash P30,000 -
Inventory P90,000
Computer equipment 160,000
Furniture and fixtures 200,000
The agreement between Maria and Nora provides that profits and losses are to be divided into 40% to Maria and 60% to Nora, and that the
partnership is to assume a liability on the computer equipment of P60,000. The partners further agree that Nora is to receive a capital credit
equal to her profit and loss ratio.
How much is to be invested by Nora?___________
Maria Nora
Cash 30,000 155,000
Inventory 90,000
Computer Equipment 100,000 (160k-60k)
Furniture and Fixtures 200,000
Total 230,000 345,000
Answer: P155,000 is to be invested by Nora
12. Roy, Sam and Tim decided to engage in a real estate venture as a partnership. Roy invested P140,000 cash and Sam provided an office
and furnishing valued at P220,000. (There is a P60,000 note payable remaining on the furnishing to be assumed by the partnership).
Although Tim has no tangible asset to invest, both Roy and Same believe that Tim’s expert salesmanship provides an adequate investment.
The partners agree to receive an equal capital interest in the partnership. Using the bonus method, what is the capital balance of Tim?
___________

Total contribution Capital Agreed contribution Capital

Roy 140,000 Roy 100,000
Sam 160,000(220k-60k) Sam 100,000
Tim ??? Tim 100,000
300,000 300,000

300,000 is the capital balance of Tim

13. On September 30, 2023, Lopez admits Mendez for an interest in his business. On this date, Lopez’s capital accounts shows a balance of
P158,400. The following were agreed upon before the formation of the partnership:
Prepaid expenses of P17,500 and accrued expenses of P5,000 are to be recognized.
5% of the outstanding accounts receivable of Lopez amounting to P100,000 is to be recognized as uncollectible
Mendez is to be credited with a one-third interest in the partnership and is to invest cash aside from the P50,000 worth of merchandise.
The amount of cash to be invested by Mendez and the total capital of the partnership?___________

Adjusting Entry:
Prepaid Expenses P17,500
Lopez, Capital P17,500

Lopez, Capital P5,000

Accrued Expenses P5,000

Lopez, Capital P5,000

Allowance for Uncollectible Accounts P5,000
Adjusting Entry:
Prepaid Expenses P17,500
Lopez, Capital P17,500
Lopez, Capital P5,000
Accrued Expenses P5,000
Lopez, Capital P5,000
Allowance for Uncollectible Accounts P5,000

P158,400 Capital P165,900÷2×3= P248,850 Total Capital of the

17,500 Prepaid Expense Partnership
(5,000) Accrued Expenses P248,850-P165,900= P82,950 Mendez, Capital (1/3)
(5,000) Allowance for Uncollectible
P165,900 Lopez, Capital (2/3)

P32,950 Cash to be invested by Mendez

50,000 Worth of merchandise
P82,950 Mende, Capital
 Lopez Mendez
Cash P158,400 P32,950
Merchandise Inventory - 50,000
Accrued Expenses (P5,000) -
Allowance for Uncollectible Accounts(5,000) -
Prepaid Expenses 17,500
Capital P165,900 P82,950 = P248,350
14. Moran and Nakar entered into a partnership on February 1,2023 by investing the following assets:
Moran Nakar
Cash P15,000 -
Merchandise Inventory - P45,000
Land - 15,000
Building - 65,000
Furniture and fixture 100,000 -
The agreement between Moran and Nakar provides that profits and losses are to be divided into 40% (to Moran) and 60% (Nakar), and
that the partnership is to assume that P30,000 mortgage loan on the building. If Nakar is to receive a capital credit equal to his profit and
loss ratio, how much cash must he invest?__________________
Moran Nakar
Cash 15,000 77,500
Merchandize Inventory 45,000
Land 15,000
Building 35,000(65k-30k)
Furniture and fixtures 100,000
115,000 172,500
77,500 should be invested
15. Ortiz and Ponce are partners sharing profits in this proportion – 60:40. A statement of financial position prepared for the partners
on April 1, 2023:
Cash P48,000 Accounts payable P89,000
Accounts receivable 92,000 Ortiz, Capital 133,000
Inventories 165,000 Ponce, Capital 108,000
Equipment 70,000
Less: AD 45,000 25,000
Total Assets P330,000 Total Liabilities and Equity P330,000
On this date, the partners agree to admit Roxas as a partner. The terms of the agreement are summarized below.
Assets and liabilities are to be restated as follows:
a. An allowance for possible uncollectible of P4,500 is to be established
b. Inventories are to be restated at their present replacement value of P170,000
c. Accrued expenses of P4,000 are to be recognized.
Ortiz, Ponce and Roxas will divide profits in the ratio of 5:3. Capital balances of the partners after the formation of the new
partnership are to be in the aforementioned ratio, with Ortiz and Ponce making cash settlement between themselves outside of the
partnership to adjust their capitals, and Roxas investing cash in the partnership for his interest. How much cash is to be invested by
Roxas?__________________
 Ortiz Ponce Total
Beg. balance P133,000 P108,000 = P241,000
A.D.A (2,700) (1,800) = (4,500)
Inventory 3,000 2,000 = 5,000
Accrued Exp. (2,400) (1,600) = (4,000)
Total 130,900 106,600 = 237,500

TCC Before Formation: P237,500

New ratio ÷ 0.8 or 80%
P296,875 × 20% = P59,375