1. On December 1, 2012, EE and FF formed a partnership, agreeing to share for profits and lossesin the ratio of 2:3, respeclively. EE invested a parcel ot land that cost him P25,000. FF invesied P30,000 cosh. the land ws sold for 50,000 on the same date, three hours after formation of the partnership, How much should be the capital balance of EE right after formation? a. P25,000 cc. P60,000 b. 30,000 d. 50,000 (AICPA) 2. On March 1, 2012, Il and JJ formed a partnership with each contributing 12 following assets: i jy Cosh 300,000 P 700,000 Machinery and equipment 750,000 Building 12,250,000 Furniture and fixtures .. The buildings subject to mortgage loan of 800,000, whichis to be assumed by the partnership agreement provides that Il and JJ share profits and losses 30% and 70%, respectively. On March 1, 2012 the balance in JU's Copital account should be: 2. P3,700,000 c. P3,050,000 b. 3,140,000 d. 2,900,000 (AICPA) The same information in Number 2, except that the mortgage loan is not ‘assumed by the parinership. On March 1, 2012 the bal 5 capital assumed by the pa salance in JJ's capital 2. 3,700,000 cc. P3,050,000 b. 3,140,000 d. 2,900,000 (Adapted) ‘Scanned with CamScanner4, As ol July 1, 2012, FF and GG dec sheels on this date are: Cash oe Accountsteceivable . Merchandise Inventory Machinery and equipment . Total Accounts Payable FF, capital... GG, capital Total loss ratio? a. P142,500 b. 52,500 ided to form a partnership. Their balance P 15,000 P 37,500 540,000 225,000 ve 202,500 270,000 P735,000 P135,000 —_ P240,000 570,000 = 495,000 P705,000 —-P735,000 The pariners agreed thal the machinery and equipment of FF is underdepreciated by P15,000 and that of GG by P45,000, Allowance for doubtful accounts s to be set up amounting to P120,000 for FF and P45,000 for GG: The partnership agreement provides for a profit and loss ratio and Capital interest of 60% to FF and 40% to GG. How much cash must FF invest. to bring the partners' capital balances proportionate to their profit and cc. P172,500 d. 102,500 (Adapted) ‘Scanned with CamScanner8. Jones and Smith formed a parinership with each partner contributing the following items: Jones Smith Cash... P 40,000 Building — cost to Jones - fair value ... 400,000 Inventory — cost to Smith 200,000 - fair value .. 280,000 Mortgage payable 120,000 Accounts payable 60,000 Assume that for tax purposes Jones and Smith agree to share equally in the liabilities assumed by the Jones and Smith partnership. What is the balance in each partner's capital account for financial accounting purposes? Jones Smith A. P350,000 P270,000. B. — P260,000 P180,000 C. P360,000 P260,000 D. P500,000 300,000 a. OptionA c. Option C b. Option B d. Option D ‘Scanned with CamScanner,32. 33. AA, BB and CC are partners with average capital balances during 2011 of P472,500, P238,650, and P162,350, respectively.!The partners receive 10% interest on their average capital balances; after deducting salaries of P122,325 to AA and P82,625 to CC, the residual profits or loss is divided equally. In 2011, the partnership had a nei loss of P125,624 before the interest and salaries to partners. By what amount should AA's and CC's capital account change - increase (decrease)? AA cc AA cc co. —P30,267 P(40,448) c. P(40,844) P31,235 b. 29,476 17,536 d. 28,358 32,458 (PhilCPA) The same information in Number 32, except the partnership had a loss of P125,624 Giter the interest and salaries to partners, by what amount should 5E's capital account change - increase (decrease)? a. P(115,443) ‘ c. — P(41,875) b. 23,865 d. (18,010) ‘Scanned with CamScanner,30. On January 2, 2011, BB and PP formed a partnership. BB contributed capital of P175,000.00 and PP, P25,000.00. They agreed to share profits and losses 80% and 20%, respectively. PP is the general manager and works in the partnership full time and is given a salary of P5,000.00 a month; an interest of 5% of the beginning capital (of both partner) and a bonus of 15% of net income before the salary, interest and the bonus. The profit and loss statement of the partnership for the year ended December 31, 2011 is as follows: Net Sales .. P875,000 Cost of goods sold .. 700,000 Gross profit .. P175,000 Expenses (including the salary, interest and the bonus) 143,000 Net income ..... P_32,000 The amount of bonus to PP in 2011 amounted to: a. P13,304 c. P18,000 b. 16,456 d. 20,700 {PhilCPA) ‘Scanned with CamScanner