Partnership Teri, Doug, and Brian are partners with capital balances of P20,000, P30,000, and P50,000

respectively. They share income in the ratio of 3:2:1. Income Summary with a debit balance of
P30,000 is closed to the capital accounts. Doug withdraws from the partnership. How much cash
does he get upon withdrawal? Group of answer choices P24,000 P30,000 P40,000 P20,000

As part of the initial investment, Omar contributes accounts receivable that had a balance of P25,000
in the accounts of a sole proprietorship. Of this amount, P1,150 is completely worthless. For the
remaining accounts, the partnership will establish a provision for possible future uncollectible
accounts of P750. The amount debited to Accounts Receivable for the new partnership is Group of
answer choices P25,000 P23,100 P23,850 P24,250

On April 30 2005 the partnership accounts of carbon, oxygen and hydrogen who share profits and
losses in the ratio of 5:3:2 follows: Carbon, Drawing – debit P12,000 Hydogen, Drawing – credit 4,800
Accounts Receivable – Carbon 7,200 Loans Payable – oxygen 14,400 Carbon, Capital 59,400 Oxygen,
Capital 44,400 Hydrogen, Capital 39,000 Total partnership assets on this day stands at P211,200,
including cash of P64,200. The partnership is liquidated and Hydrogen ultimately receives P33,000 in
final liquidation. How much is the total loss on realization of the partnership? Group of answer
choices P31,200 P64,200 P54,000 P10,800

Hanyu and his very close friend Yuzuru formed a partnership on January 1, 2020 with Hanyu
contributing P16,000 cash and Yuzuru contributing equipment with a book value of P6,400 and a fair
value of P8,000. During 2020 Yuzuru made additional investments of P1,600 on April 1 and P1,600 on
June 1, and on September 1, he withdrew P4,000. Hanyu had no additional investments or
withdrawals during the year. The average capital balance at the end of 2020 for Yuzuru is: Group of
answer choices P9,600 P8,000 P7,200 P8,800

Adriana and Belen are partners who share income in the ratio of 3:2 and have capital balances of
P50,000 and P90,000 at the time they decide to terminate the partnership. After all noncash assets
are sold and all liabilities are paid, there is a cash balance of P90,000. How much cash should be
distributed to Adriana? Group of answer choices P30,000 P20,000 P50,000 P45,000

Everett, Miguel, and Ramona are partners, sharing income 1:2:3. After selling all of the assets for
cash, dividing losses on realization, and paying liabilities, the balances in the capital accounts are as
follows: Everett, P50,000 Cr.; Miguel, P40,000 Dr.; and Ramona, P30,000 Cr. How much cash is
available for distribution to the partners? Group of answer choices P120,000 P30,000 P40,000
P90,000
FRA and LIPPO are partners sharing profits and losses 3:1. Their respective capital balances were
P200,000 and 300,000. At this time, they decided to admit LIPPI for an investment of P250,000. the
investment of LIPPI will give him a 25% interest in the partnership. How much is the asset
revaluation? Group of answer choices 250,000 150,000 200,000 362,500

Soledad and Winston are partners who share income in the ratio of 1:3 and have capital balances of
P100,000 and P140,000 at the time they decide to terminate the partnership. After all noncash assets
are sold and all liabilities are paid, there is a cash balance of P130,000. What amount of loss on
realization should be allocated to Winston? Group of answer choices P42,500 P97,500 P110,000
P82,500

Partners J and C divide profits and losses in the ratio 3:2 their capital balances were P120, 000 and
P80, 000, respectively. They decided to admit D for a 1/3 interest in the new capital P350, 000. D
capital will be credited for: Group of answer choices P120,000 P116,667 P200,000 P80,000

When a new partner is admitted by making an investment of assets in the partnership and the new
partner has to pay a premium for admission, a bonus is divided among the old partners' capital
accounts. 2. When a new partner is admitted by making an investment in the partnership, the old
partners' capital accounts are always credited. Group of answer choices both statements are false
only the second statement is true only the first statement is true both statements are true

When a partner invests noncash assets in a partnership, the assets are recorded at the partner's book
value. 2. Accounts receivable contributed to the partnership are recorded at their face value. Group
of answer choices only the first statement is true both statements are false both statements are true
only the second statement is true

Partnership income and losses are usually divided on the basis of interest, salaries, and stated ratios
because Group of answer choices it is simpler than following the legal rules it prevents arguments
among the partners this method reflects the amount of time devoted to the partnership by the
partners partners seldom contribute time and resources equally

Which of the following is a disadvantage of partnership? Group of answer choices There is a

continuous likelihood of disagreement when each of the partners has the same authority in the
management of the partnership. It is more stable because it can be easily dissolved. There is divided
authority among the partners. A partner is not always subject to a personal liability for the wrongful
acts of his associates.

Nick is admitted to an existing partnership by investing cash. Nick agrees to pay a bonus for his
ownership interest because of the past success of the partnership. When Nick’s investment in the
partnership is recorded Group of answer choices his capital account will be credited for more than
the cash he invested his capital account will be credited for the amount of cash he invested a bonus
will be credited for the amount of cash he invested a bonus will be distributed to the old partners'
capital accounts.

When a partnership is formed, assets contributed by the partners should be recorded on the
partnership books at their Group of answer choices original costs to the partner contributing them
book values on the partners' books prior to their being contributed to the partnership fair market
value at the time of the contribution assessed values for property purposes