Part I-Theories

1F 16F
2F 17F
3F 18F
4T 19F
5T 20F
6T 21F
7F 22F
8F 23F
9T 24C
10F 25D
11F 26B
12F 27C/D
13F 28C
14F 29B
15F 30A
Part II-Problems
31
Rachel
Rachel ₱ 60,000.00
Reuel ₱ 90,000.00
Ruth -₱ 20,000.00
Cash Available ₱ 130,000.00 D

32 25% 35% 40%

Honda Toyota Suzuki
Capital ₱ 2,500,000.00 ₱ 5,400,000.00 ₱ 3,700,000.00
Loan ₱ 600,000.00
Interest ₱ 2,500,000.00 ₱ 6,000,000.00 ₱ 3,700,000.00
Actual Loss on Realization -₱ 1,050,000.00 -₱ 1,470,000.00 -₱ 1,680,000.00
Cash Received by Partners ₱ 1,450,000.00 ₱ 4,530,000.00 ₱ 2,020,000.00

Cash received by Honda ₱ 1,450,000.00

Cash received by Toyota ₱ 4,530,000.00
Cash Received by Suzuki ₱ 2,020,000.00
Total cash to be distributed ₱ 8,000,000.00 B

33 25% 35% 40%

Honda Toyota Suzuki
Capital ₱ 2,500,000.00 ₱ 5,400,000.00 ₱ 3,700,000.00
Loan ₱ 600,000.00
Interest ₱ 2,500,000.00 ₱ 6,000,000.00 ₱ 3,700,000.00
Actual Loss -₱ 3,800,000.00 -₱ 5,320,000.00 -₱ 6,080,000.00
Cash Received by partners -₱ 1,300,000.00 ₱ 680,000.00 -₱ 2,380,000.00
Cash needed to be invested by Honda ₱ 1,300,000.00
Cash needed to be invested by Suzuki ₱ 2,380,000.00
Total cash needed to be invested by partners ₱ 3,680,000.00 A

34 CC Asset Reval
Chie ₱ 180,000.00 ₱ 8,000.00
Cha ₱ 100,000.00 ₱ 8,000.00
Ron ₱ 120,000.00 ₱ 4,000.00
Corn ₱ 140,000.00
Total ₱ 540,000.00 ₱ 20,000.00

36
Jack Jill John
Interest ₱ 60,000.00 ₱ 50,000.00 ₱ 40,000.00
Loss on Realization -₱ 10,000.00 -₱ 10,000.00 -₱ 10,000.00
Total Cash Available for Distribution

37 Ram Rain Rex

Capital ₱ 66,000.00 ₱ 74,700.00 ₱ 45,500.00
Loan from Ram ₱ 30,000.00
Interest ₱ 96,000.00 ₱ 74,700.00 ₱ 45,500.00
Loss on Realization* P(213,000) -₱ 106,500.00 -₱ 63,900.00 -₱ 42,600.00
Cash Received by Rex ₱ - ₱ 10,800.00 ₱ 2,900.00

Loss on Realization*
Rain's interest ₱ 74,700.00
cash received -₱ 10,800.00
Share in LOR ₱ 63,900.00
P&L Ratio 30%
Total LOR ₱ 213,000.00

38
King ₱ 100,000.00
khong ₱ 200,000.00
Total ₱ 300,000.00
Interest for the old partners 2/3
Total Agreed Interest ₱ 450,000.00
Interest for the new partner 1/3
Amount to be invested ₱ 150,000.00 B

39. D
Lala Lulu Lily
Capital ₱ 168,000.00 ₱ 120,000.00 ₱ 48,000.00
Loan ₱ 64,000.00
Cash Received by partners
Loss on Realization & Cash withheld for contingencies

Lala Lulu Lily

Capital ₱ 168,000.00 ₱ 120,000.00 ₱ 48,000.00
Loan ₱ 64,000.00
Interest ₱ 232,000.00 ₱ 120,000.00 ₱ 48,000.00
Loss on Realization and Cash withheld for contingencies -₱ 130,000.00 -₱ 78,000.00 -₱ 52,000.00
Total ₱ 102,000.00 ₱ 42,000.00 -₱ 4,000.00
Proration of deficiency -₱ 2,500.00 -₱ 1,500.00 ₱ 4,000.00
Cash to be received ₱ 99,500.00 ₱ 40,500.00 ₱ -

40. B
Bugs Bunny Total
Salaries ₱ 160,000.00 ₱ 200,000.00 ₱ 360,000.00
Interest ₱ 36,000.00 ₱ 60,000.00 ₱ 96,000.00
Remainder(600,000-360,000-96,000) ₱ 72,000.00 ₱ 72,000.00 ₱ 144,000.00
Total ₱ 268,000.00 ₱ 332,000.00 ₱ 600,000.00

41. D
Ping Pong Pang
Capital ₱ 320,000.00 ₱ 90,000.00 ₱ 110,000.00
Loss on Realization (720,000-600,000) -₱ 48,000.00 -₱ 60,000.00 -₱ 12,000.00
Total ₱ 272,000.00 ₱ 30,000.00 ₱ 98,000.00

42. B
Ping Pong Pang
Capital ₱ 320,000.00 ₱ 90,000.00 ₱ 110,000.00
Loss on Realization (720,000-360,000) -₱ 144,000.00 -₱ 180,000.00 -₱ 36,000.00
Total ₱ 176,000.00 -₱ 90,000.00 ₱ 74,000.00
Proration of capital deficiency -₱ 72,000.00 ₱ 90,000.00 -₱ 18,000.00
Cash received ₱ 104,000.00 ₱ - ₱ 56,000.00

43. B
Joey's Interest ₱ 150,000.00
Cash Received by Joey -₱ 120,000.00
Share in Loss on Realization ₱ 30,000.00
Divided by P&L Ratio 40%
Total loss on Realization ₱ 75,000.00

44. C
 Jay Joy Joey
Capital ₱ 160,000.00 ₱ 130,000.00 ₱ 140,000.00
Drawings -₱ 30,000.00 ₱ 10,000.00
Loan ₱ 50,000.00
Interest ₱ 130,000.00 ₱ 180,000.00 ₱ 150,000.00
Loss on Realization (30,000/40%) -₱ 22,500.00 -₱ 22,500.00 -₱ 30,000.00
Cash Received ₱ 107,500.00 ₱ 157,500.00 ₱ 120,000.00

45. D 46.D
Chi Cha Corn
Capital ₱ 43,000.00 ₱ 23,000.00 ₱ 65,000.00
Loan ₱ 4,000.00
Interest ₱ 43,000.00 ₱ 27,000.00 ₱ 65,000.00
Actual Loss on Realization (90,000-50,000) -₱ 10,000.00 -₱ 14,000.00 -₱ 16,000.00
Assumed Loss -₱ 22,500.00 -₱ 31,500.00 -₱ 36,000.00
Total ₱ 10,500.00 -₱ 18,500.00 ₱ 13,000.00
Proration of Deficiency -₱ 7,115.38 ₱ 18,500.00 -₱ 11,384.62
Cash Received ₱ 3,384.62 ₱ - ₱ 1,615.38

47.B
Cash Priority Program (CPP)

Chi Cha Corn

Capital ₱ 43,000.00 ₱ 23,000.00 ₱ 65,000.00
Loan ₱ 4,000.00
Interest ₱ 43,000.00 ₱ 27,000.00 ₱ 65,000.00
P&L Ratio 25% 35% 40%
Total ₱ 172,000.00 ₱ 77,142.86 ₱ 162,500.00
Less -₱ 9,500.00
Total ₱ 162,500.00 ₱ 77,142.86 ₱ 162,500.00
Less -₱ 85,357.14 -₱ 85,357.14
Total ₱ 77,142.86 ₱ 77,142.86 ₱ 77,142.86

48. A
Campos Centeno
Capital ₱ 641,976.00 ₱ 728,352.00
Adjustments:
a. Uncollectible AR -₱ 20,000.00 -₱ 35,000.00
b. Worthless Inventories -₱ 5,500.00 -₱ 6,700.00
c. Other Assets written of -₱ 2,000.00 -₱ 3,600.00
Capital After Adjustments ₱ 614,476.00 ₱ 683,052.00

49. C
Campos, Capital ₱ 614,476.00
Centeno, Capital ₱ 683,052.00
Account Payable ₱ 422,590.00
Notes Payable ₱ 545,000.00
Total Assets ₱ 2,265,118.00

50. D
Campos, Capital ₱ 614,476.00
Centeno, Capital ₱ 683,052.00
Total ₱ 1,297,528.00
Divide by 80%
Total Capital ₱ 1,621,910.00
Coronel's Interest 20%
Cash required to be contributed ₱ 324,382.00

51. A
Loan Payable must be prioritized over the payment of capital

52. A
Emma
Capital ₱ 140,000.00
Drawings ₱ 10,000.00
Loan ₱ -
Interest ₱ 150,000.00
Cash received by Emma -₱ 120,000.00
Share in Loss on Realization ₱ 30,000.00
P&L Ratio 40%
Total Loss on Realization ₱ 75,000.00

53. A 40% 40% 20%

Elaine Flor Gina
Capital/ Interest ₱ 40,000.00 ₱ 65,000.00 ₱ 48,000.00
Actual loss on Realization -₱ 16,000.00 -₱ 16,000.00 -₱ 8,000.00
Assumed Loss -₱ 36,000.00 -₱ 36,000.00 -₱ 18,000.00
Total -₱ 12,000.00 ₱ 13,000.00 ₱ 22,000.00
Proration of Deficiency ₱ 12,000.00 -₱ 8,000.00 -₱ 4,000.00
Cash Received ₱ - ₱ 5,000.00 ₱ 18,000.00

54. B 40% 40% 20%

Elaine Flor Gina
Capital/ Interest ₱ 40,000.00 ₱ 65,000.00 ₱ 48,000.00
Actual loss on Realization -₱ 16,000.00 -₱ 16,000.00 -₱ 8,000.00
Assumed Loss -₱ 36,000.00 -₱ 36,000.00 -₱ 18,000.00
Cash withheld for future liquidating expenses -₱ 1,200.00 -₱ 1,200.00 -₱ 600.00
Total -₱ 13,200.00 ₱ 11,800.00 ₱ 21,400.00
Proration of Deficiency ₱ 13,200.00 -₱ 8,800.00 -₱ 4,400.00
Total Cash Received ₱ - ₱ 3,000.00 ₱ 17,000.00

55. I cant solve the problem Hahahahaha

56. C
Total Capital ₱ 135,000.00
Drawings -₱ 10,000.00
Net Loss -₱ 20,000.00
Total Capital after Closing of books ₱ 105,000.00
Liabilities ₱ 5,000.00
Total Assets ₱ 110,000.00
Cash on Hand -₱ 700.00
Non-cash Assets before Liquidation ₱ 109,300.00

57. D 60%
Aguas
Capital ₱ 25,000.00
Drawings
Net Loss -₱ 12,000.00
Interest ₱ 13,000.00
Target Final Settlement ₱ 19,000.00
Required Gain on Realization of Non-cash assets ₱ 6,000.00
P&L Ratio 60%
Total Required Gain on Realization of Non-Cash Assets ₱ 10,000.00
Book Value of Non-cash Assets ₱ 109,300.00
Required Amount to be realized ₱ 119,300.00

58. D 60% 25% 15%

Aguas Bernal Coral
Capital ₱ 25,000.00 ₱ 50,000.00 ₱ 60,000.00
Drawings -₱ 10,000.00
Net Loss -₱ 12,000.00 -₱ 5,000.00 -₱ 3,000.00
Interest ₱ 13,000.00 ₱ 45,000.00 ₱ 47,000.00
Total Loss on Realization -₱ 30,200.00 -₱ 12,583.33 -₱ 7,550.00
Total -₱ 17,200.00 ₱ 32,416.67 ₱ 39,450.00
Proration of Deficiency ₱ 17,200.00 -₱ 10,750.00 -₱ 6,450.00
Cash Received ₱ 0.00 ₱ 21,666.67 ₱ 33,000.00

59 30% 50% 20%

Felix Fojas Fajardo
Capital ₱ 225,000.00 ₱ 150,000.00 ₱ 75,000.00
Loan to Partnership (from Partnership) -₱ 25,000.00 ₱ 50,000.00
Interest ₱ 225,000.00 ₱ 125,000.00 ₱ 125,000.00
P&L Ratio 30% 50% 20%
Loss Absorption Capacity ₱ 750,000.00 ₱ 250,000.00 ₱ 625,000.00
 Partner with the least absorption capacity is the

59 30% 50% 20%

Felix Fojas Fajardo
Capital ₱ 225,000.00 ₱ 150,000.00 ₱ 75,000.00
Loan to Partnership (from Partnership) -₱ 25,000.00 ₱ 50,000.00
Interest ₱ 225,000.00 ₱ 125,000.00 ₱ 125,000.00
Loss on Realization (475,000-75000) -₱ 120,000.00 -₱ 200,000.00 -₱ 80,000.00
Total ₱ 105,000.00 -₱ 75,000.00 ₱ 45,000.00
Proration of Deficiency -₱ 45,000.00 ₱ 75,000.00 -₱ 30,000.00
Cash Received ₱ 60,000.00 ₱ - ₱ 15,000.00
Assume that the whole P15,200,000 Noncash Asset is a loss
AC
₱ 188,000.00 B
₱ 108,000.00
₱ 124,000.00
₱ 140,000.00
₱ 560,000.00
(140000 divided by 1/4)

Total
₱ 150,000.00
-₱ 30,000.00
₱ 120,000.00 C

not in the choices

Total
₱ 336,000.00
₱ 64,000.00
-₱ 140,000.00
₱ 260,000.00

Total
₱ 336,000.00
₱ 64,000.00
₱ 400,000.00
-₱ 260,000.00
₱ 140,000.00
Total
₱ 131,000.00
₱ 4,000.00
₱ 135,000.00
-₱ 40,000.00
-₱ 90,000.00
₱ 5,000.00
₱ -
₱ 5,000.00

Chi Cha Corn

₱ 2,375.00

₱ 21,339.29 ₱ 34,142.86
₱ 23,714.29 ₱ - ₱ 34,142.86
-₱ 40,000.00
-₱ 90,000.00

₱ -
 ₱ 47,000.00 ₱ 13,000.00 ₱ 45,000.00 ₱ 47,000.00
₱ 50,333.33 -₱ 14,000.00 -₱ 93,333.33 -₱ 56,000.00 -₱ 23,333.33 -₱ 14,000.00
₱ 33,000.00 -₱ 43,000.00 ₱ 21,666.67 ₱ 33,000.00
-₱ 26,875.00 -₱ 16,125.00
absorption capacity is the most vulnerable to losses on liquidation

₱ 475,000.00
-₱ 400,000.00