Arlene Diane V.

Orozco
Partnership Formation
Exercises:
1. Clapz
Cash 324,000
A/R 73,080
PPE 1, 396,260
Mortgage Payable 972,000
Clapz, Capital 821,340
Doms
Cash 306,738
PPE 340,200
Mortgage payable 72,000
Doms, Capital 574,938
Ernesto
Cash 154,602
A/R 91,800
Ernesto, Capital 246,402
2. Total Capital balance = 1,642,680
Clapz – (1,642,680 x 5/10) = 821,340
Doms – (1,642,680 x 3/10) = 492,804
Ernesto - (1,642,680 x 2/10) = 328,536
Multiple choice
1. A
2. Blas, Capital 1,890,000
Divide by profit and loss ratio of Blas 45%
Total 4,200,000
Multiply by Aljon’s profit and loss ratio 55%
Minimum capital requirement for Aljon 2,310,000
Aljon’s Capital 2,850,000
(540,000) B
3. D
4. Cash - 1,100,160
A/R 96,000 (a) (7,680)
Inventory 268,800 (b) (19,200)
Equipment - (c) 11,520
Furn.and fix. 514,560
Intangibles 220,800 (d) (13,440)
Ann, Capital 1,100,160 1,071,360 D
5. AP BAM CAM
Cash 50,000 - -
PPE 45,000* 55,000 C
*80,000 – 35,000 =45,000
6. Aiz Shef Booba
Cash 50,000 80,000 25,000
Equipment 25,000 - 60,000
Capital 75,000 80,000 85,000 A

7. Cash 26,000 Capital 264,000

A/R 120,000 (1) (3,600)
Merchandise Inventory 180,000 (2) 25,000
Total Assets 326,000 (3) 3,600
A/P 62,000 (4,000)
Moreno, Capital 264,000 285,000
Total Liab. and Equity 326,000 ÷ 60%
475,000
x 40%
190,000 B
8. A
9. A
10. Total agreed capital 80,000
Multiplied by: Capital interest (equal) ½ or 50%
Partner’s individual capital interest 40,000
Less: Redd’s capital interest 20,000
Bonus to Redd 20,000 B