1. Partnership JB has two partners, Jim and Bill.
Jim own 60% of the partnership and Bill owns 40%. In
which of the following transactions will the partnership be held responsible for an individual partners'
actions
Bill signs a contract to buy furniture for official use in the partnership.
2. Carlin and Marley have a partnership agreement which includes the following provisions regarding
sharing net income or net loss.
* A salary allowance of P120,000 to Carlin and P100,000 to Marley.
* An interest allowance of 10% on capital balances at the beginning of the year.
* A bonus of 20% to Carlin,
* The remainder is to be divided 40% to Carlin and 60% to Marley.
The capital balances on January 1, 2018 for Carlin and Marley was P90,000 and P120,000,
respectively. During 2018, the Carlin and Marley partnership had sales of P2,000,000, cost of goods
sold of P1,100,000, and operating expenses of P400,000. Income Tax rate is 30%.
● If bonus is computed based on net income before bonus, salary allowances, and interest on
capital, the total share of C in the partnership is ________.
214600
● If bonus is computed based on net income after bonus, salary allowances, and interest on
capital, the total share of C in the partnership is ________.
183500
1. On January 1, 2021, Am and Boy agreed to form a partnership. The partners’ contribution are as
follows:
Am Boy
Cash 50,000 120,000
AR 360,000 1,080,000
Inventories 216,000 360,000
Land 1,080,000
Building 900,000
Equipment 90,000 90,000
AP 336,000 450,000
Capital 1,460,000 2,100,000
The partners agreed to the following:
A. The recoverable amounts of the partners’ accounts receivable are P300,000 and P760,000 for
and Boy , respectively
B. The inventory contributed by Boy includes obsolete items with a recorded cost of P200,000
C. The land contributed by Am has an attached mortgage of P180,000. The partnership shall
assume the mortgage
D. The equipment contributed by Boy has a fair value of P130,000
E. Has an unrecorded accounts payable of P100,000. The partnership assumes the obligation of
settling the account *
● The total assets of Amboy Partnership is
3986000
● The adjusted capital balance of Am is
1120000
● The adjusted capital balance of Boy is
1800000
1. Felicity and Gregory are partners with capital balances of P700,000 and P500,000, respectively. They
agree to accept Randell who will contribute land costs him P500,000, but with a market value of
P600,000.
Randell will be given 30% interest in the partnership and bonus is to be recognized.
● The revised capital of Felicity after the admission of Randell is
P735,000
● Who gives the bonus?
Randell
Randell will be given 40% interest in the partnership.
● Assuming bonus is to be recognized, how much is the bonus?
120,000
● Assuming bonus is to be recognized, who gets the bonus?
Randell
2. Felicity and Gregory are partners with capital balances of P700,000 and P500,000, respectively. They
agree to accept Randell who will contribute land costs him P500,000 but with a market value of
P600,000. Randell will be given 30% interest in the partnership but assets should first be revalued
using Randell’s investment and interest as basis.
● How much is the total agreed capital?
P2,000,000
● How much is the total asset revaluation?
200,000
3. Felicity and Gregory are partners with capital balances of P700,000 and P500,000, respectively. They
agree to accept Randell who will contribute land costs him P500,000 but with a market value of
P600,000. Randell will be given 40% interest in the partnership but assets should first be revalued
using Randell’s investment and interest as basis.
● Total asset revaluation amounts to
P(300,000)
1. Ara, Bea, and Cai agreed to admit a new partner on January 1, 2021 when their capital balances were
250,000, 150,000, and 200,000, respectively. Profit and loss ratio is [Link], respectively. A new partner,
Dell was admitted for cash investment that will give her 25% interest in the partnership.
How much should Dell invest?
200,000
2. Ara, Bea, and Cai agreed to admit a new partner on January 1, 2021 when their capital balances were
250,000, 150,000, and 200,000, respectively. Profit and loss ratio is [Link], respectively.
Ara retired and the partnership paid her P240,000 after the assets were revalued.
● Bea’s capital after Ara’s retirement is
P145,000
Ara retired and the partnership paid her P280,000 after the assets were revalued.
● Total capital after Ara’s retirement is
P395,000
3. Ara, Bea, and Cai agreed to admit a new partner on January 1, 2021 when their capital balances were
250,000, 150,000, and 200,000, respectively. Profit and loss ratio is [Link], respectively. A new partner,
Dell was admitted for cash investment of 100,000 for a 20% interest in an agreed capitalization of
700,000. The accountant recognized
Bonus to new partner
