Professional Documents
Culture Documents
MCQs
1. C
2. C
3. D
4. B
5. B
T/F
1. FALSE – ₱2M
2. FALSE – credited for ₱200
3. TRUE (200 + 100) x 60% = 180
4. FALSE (200 + 100) x 40% = 120 capital credit – 100 contribution = ₱20
5. TRUE
6. FALSE - ₱100
7. FALSE – in proportion to their contributions
8. FALSE – 1M x 80% x 50% = 400K
9. FALSE – -1M x 50% = -500K
10. FALSE
11. TRUE – (12M – 2M) x 40% = 4M
12. TRUE – (-8M – 2M) x 40% = -4M
13. FALSE – {50 + [(100 – 50 – 30) x 50%]} = 60
14. TRUE {50 + [(-100 – 50 – 30) x 50%]} = -40
15. FALSE [360 – (360 ÷ 120%)] = 60
Problem 1
1.
Solution:
A B Partnership
2.
Solution:
Using first A’s capital, let us determine if B’s capital contribution has any deficiency.
A, capital 200,000
Divide by: Profit (loss) sharing ratio of A 40%
Total 500,000
Multiply by: B's profit (loss) sharing ratio 60%
Now using B’s capital, let us determine if A’s capital contribution has any deficiency.
B, capital 600,000
Divide by: Profit (loss) sharing ratio of A 60%
Total 1,000,000
Multiply by: A's profit (loss) sharing ratio 40%
3.
A B Total
Allocation:
1. Salaries 100,000 70,000 170,000
4.
Solution:
Choice #1 Choice #2
40,000 salary = 25,000 salary + 10%X
150,000 profit after salaries and bonus + 25,000 salary of A + 15,000* bonus of A + 100,000 salaries of
other partners = 290,000 profit before salaries and bonus
5.
Solution:
Axel Berg Cobb Total
Allocation:
1. Bonus to Axel
6.
Solution:
The weighted average balance of B’s capital account is computed as follows:
A B Total
Allocation:
7.
Solution:
Profit (after deduction of monthly salaries) 840,000
A B Total
Allocation:
a
The “bonus after bonus” is computed as follows:
P
B = P -
1 + Br
1,320,000
B = 1,320,000 -
1 + 20%
B = 1,320,000 - 1,100,000
B = 220,000
The ending balances of the partners’ respective capital accounts are computed as follows:
A B
8.
A's Capital
60,000 beg.
end. -