Professional Documents
Culture Documents
20-21
ANSWER KEY
THEORY
1. 1 16. 1/2/3
2. 3 17. 1
3. 1 18. 3
4. 2 19. 1
5. 1 20. 2
6. 3 21. 3
7. 2 22. 3
8. 3 23. 1
9. 2 24. 3
10. 2 25. 2
11. 2
12. 2
13. 3
14. 1
15. 1
PROBLEM-SOLVING
1. B
30,000 bonus must be deducted in the ratio 2/6 and 4/6, respectively; 40,000 – 10,000 & 30,000 – 20,000 =
30,000 & 10,000
2. D
(348,000 + 232,000) / 80% x 20% = 145,000
3. A
20,000 bonus upon withdrawal must be deducted from remaining partners’ capital accounts equally: 20,000 / 3
= 6,667
4. A
Adjusted capital of Knight is P165,900 (158,400 +17,500 – 5,000 – 5,000), divide by 2/3 and multiply by 1/3
resulting to P82,950, less P50,000 merchandise, the cash investment is P32,950
5. D
MOCK EXAM (2nd) FOR BA 118.1 – ADVANCED FINANCIAL ACCOUNTING & REPORTING A.Y. 20-21
6. A
300,000 + 200,000 + 100,000 – 60,000 + 30,000 – 225,000 = 345,000
12. A
130,000 – 25,000 – 60,000 = 45,000 share in NI. 45,000 / 30% = 150,000
13. C
90,000 – 75,000 = 15,000 bonus to old partners ( because TAC = TCC; PAC (new) < PCC (new) )
14. D
Average capital of Por = [120,000 x 4/12 + 100,000 x 3/12 + 110,000 x 2/12 + 100,000 x 3/12] = 108,333
Average capital of Que = [80,000 x 4/12 + 70,000 x 2/12 + 90,000 x 3/12 + 85,000 x 3/12] = 82,083
Share of Por = 240,000 x (108,333 / 190,416) = P136,543
Share of Que = 240,000 x (82,083 / 190,416) = P103,457
15. A
Par = 180,000 + (30,000 x 50%) + (40,000 x 60%) = 219,000
Cor = 30,000 x 50% + 40,000 x 40% = 31,000
18. A
1,956,000 – 72,000 – 120,000 + 1,800,000 + 480,000 = 4,062,000
20. C
Sum of all assets – mortgage = P260,000
22. D
MOCK EXAM (2nd) FOR BA 118.1 – ADVANCED FINANCIAL ACCOUNTING & REPORTING A.Y. 20-21
(55,000 + 60,000) / 45% = 255,555; 255,555 – 235,000 = 20,555; 20,555 x (45% - 65%) = 4,111
24. A
Adj bal of Mike = 408,000 – 21,600 – (6,000 x 1/3) = 384,400
Adj bal of Mel = 384,400 / 40% x 60% = 576,600
576,600 – (439,200 – 19,200 – (6,000 x 2/3)) = 160,600
25. C
Only the first stipulation will be met, thus: Xerxes = 35,000 x (50/70) = 25,000; Yurnero = 35,000 x (20/70)
= 10,000
26. D
Biden = -2,000 – 4,000 – 8,000 + 10,000 + 14,000 = 10,000 net credit
Harris = -4,000 – 2,000 – 10,000 – 7,000 + 9,000 = 14,000 net debit
27. D
Biden = 144,000 + 10,000 = 154,000
Harris = 200,000 – 14,000 = 186,000
28. A
186,000 / 60% x 40% = 124,000; 154,000 – 124,000 = (30,000)
29. D
30. D
(720,000 x 4/5) + (12,600 x ¾) – (1,500 x 2 x 2) – (2,000 x 2) = 575,450;
575,450 – [(720,000 x 1/5) + (12,600 x ¼) – (2,000 x 2)] = 432,300
31. B
60,000 + 6,000 – 4,000 + [(60,000 – 10,000 + 30,000 – 30,000) x 20%] = 72,000
32. A
Michelle = 140,000 + (50,000 x 50%) - (4,000 x 5/8) = 162,500
Kelly = 120,000 + (50,000 x 30%) - (4,000 x 3/8) = 133,500
33. C
Michelle = 140,000 + (50,000 x 50%) + (3,000 x 5/8) = 166,875
Kelly = 120,000 + (50,000 x 30%) + (3,000 x 3/8) = 136,125
38. A
425,000 x 25% = 106,250
39. B
200,000 + (18,750 x ¾) = 214,062.50
100,000 + ((18,750 x ¼) = 104,687.50
SECOND YEAR
Salary 26,000 13,000 39,000
Interest 11,830 8,060 12,610 32,500
Remainder (9,750) (3,900) (5,850) (19,500)
Total 28,080 4,160 19,760 52,000
COMPUTATION
OF BALANCES
Initial balance 143,000 104,000 143,000
Share in loss (11,700) (10,400) (3,900)
Withdrawals (13,000) (13,000) (13,000)
Year 2 Beg. balance 118,300 80,600 126,100
Share in income 28,080 4,160 19,760
Withdrawals (13,000) (13,000) (13,000)
Ending balance 133,380 71,760 132,860
Net income: 33,000 – (5,250 + 16,750 – 4,550) = 15,550 less 6,755 and 105 expenses = 8,690
*Net income = (233,000 – 5,000) – (196,000 – 73,000) – (60,000 – 2,500 – 950 + 1,550) – (45,000 x 20% x 10/12) =
39,400
Pi XV La19 Total
Capital 120,000 70,000 80,000
Withdrawal (24,000) (24,000) (24,000)
Loss (9,600) (6,400) (16,000) (32,000)
Ending 86,400 39,600 40,000
Revaluation (14,400) (9,600) (24,000) (48,000)
72,000 30,000 16,000
C P A Total
Beginning Capital 170,000 255,000 382,500 807,500
Salaries 102,000 81,600 61,200 244,800
Interest 22,100 25,500 35,275 82,875
Remainder of NI 8,500 8,500 8,500 25,500
Investment/Withdrawal 102,000 ________ (119,000) (17,000)
Ending Capital 1,143,675