Bulacan State University

Sarmiento Campus

Partnership and Corporation Accounting

QUIZ #2

Name________________________ Course________ Score_________

I. Solve the following:
Papa and Mama formed their partnership on January 1, 2017 by investing Php 60,000.00 and Php
40,000.00, respectively. Their accounts as of December 31, 2017.

Papa, Capital Papa, Drawing

__________________ __________________
Jan. 1 60,000 Jan. 1 Php 12,000 Oct. 31 9,000
Aug. 1 30,000

Mama, Capital
__________________ Mama, Drawing
Jan.1 40,000 _________________
July 1 10,000 Sept. 30 6,000

The partnership net income for 2019 was Php 25,000.00

Compute the following :

Based on Original Capital: Share
Original Amt. Fraction in net Income
1. Papa

2 Mama

Based on beginning permanent capital

Permanent Capital, Jan 1 Share in

Amount Fraction Net Income
1. Papa

2. Mama
Based on ending permanent capital:

Permanent Capital, Dec. 31 Share in

Amount Fraction Net Income
1. Papa

2. Mama

Based on ending inclusive of Drawings:

Capital Inclusive of Drawings

As of December 31, 2017

Original Share in
Amount Fraction Net Income
1. Papa

2. Mama

II. Find the average capital ratio

Papa, Capital
# of Mos.

Date Dr Cr Balance X Unchange Peso - Month

20D
Jan 1

Average Capital=

Mama Capital

# of Mos.
Date Dr Cr Balance X Unchange Peso - Month
20D
Jan. 1
Average Capital :
3.Assume that the partnership incurred a net loss of Php 60,000.00 what is the
amount to be share by each partner if the ratio is 6: 4 Compute using the arbitrary
ratio method.
Solution :

III. Give the journal entries.

1. Thi, Lha and Khi formed a partnership on July 24, 2018. This is to invest cash of
Php 50,000. Lha is to invest merchandise which she bought two years ago for Php
50,000.00 but which as a current value of Php 30,000. Khi is to be admitted and will
give 3/4 of Lha capital contribution.

Journal entries:

2. Loga decided to invest his land, which cost him Php 2,000,000 when he bought
this previous year but appraised value of Php 6,000,000. However, this land has
mortgage balance of Php 190,000. Other partners agreed that the mortgage be
assumed by the partnership upon formation.

Journal entries: