MOCK EXAM (1ST) FOR BA 118.1 – ADVANCED FINANCIAL ACCOUNTING & REPORTING A.Y.

20-21

ANSWER KEY

THEORY PROBLEM-SOLVING

1. A 1. B
2. A 30,000 bonus must be deducted in the ratio
3. C 2/6 and 4/6, respectively; 40,000 – 10,000 &
4. D 30,000 – 20,000 = 30,000 & 10,000
5. B
2. D
6. B (348,000 + 232,000) / 80% x 20% =
7. D 145,000
8. C
9. D 3. A
10. A 20,000 bonus upon withdrawal must be
deducted from remaining partners’ capital
11. C accounts equally: 20,000 / 3 = 6,667
12. D
13. B 4. A
14. A Adjusted capital of Knight is P165,900
15. B (158,400 +17,500 – 5,000 – 5,000), divide by
2/3 and multiply by 1/3 resulting to
16. D P82,950, less P50,000 merchandise, the
17. B cash investment is P32,950
18. C
19. B 5. D
20. D 165,900 + 82,950 = P248,850

21. C 6. A
22. C 300,000 + 200,000 + 100,000 – 60,000 +
23. C 30,000 – 225,000 = 345,000
24. C
25. B 7. B (see computations below)

8. A (see computations below)

9. D (see computations below)

10. D (see computations below)

11. D (see computations below)

MOCK EXAM (1ST) FOR BA 118.1 – ADVANCED FINANCIAL ACCOUNTING & REPORTING
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
16. C (see computations below)
17. C (see computations below)
18. A
1,956,000 – 72,000 – 120,000 + 1,800,000 +
480,000 = 4,062,000
19. C (see computations below)
20. C
Sum of all assets – mortgage = P260,000
21. A (see computations below)
A.Y. 20-21
22. D
(55,000 + 60,000) / 45% = 255,555; 255,555
– 235,000 = 20,555; 20,555 x (45% - 65%) =
4,111
23. B (see computations below)
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
MOCK EXAM (1ST) FOR BA 118.1 – ADVANCED FINANCIAL ACCOUNTING & REPORTING A.Y. 20-21

31. B 34. D (see computations below)

60,000 + 6,000 – 4,000 + [(60,000 – 10,000
+ 30,000 – 30,000) x 20%] = 72,000 35. A (see computations below)

32. A 36. B (see computations below)

Michelle = 140,000 + (50,000 x 50%) -
(4,000 x 5/8) = 162,500 37. D (see computations below)
Kelly = 120,000 + (50,000 x 30%) - (4,000 x
3/8) = 133,500 38. A
425,000 x 25% = 106,250
33. C
Michelle = 140,000 + (50,000 x 50%) + 39. B
(3,000 x 5/8) = 166,875 200,000 + (18,750 x ¾) = 214,062.50
Kelly = 120,000 + (50,000 x 30%) + (3,000 x 100,000 + ((18,750 x ¼) = 104,687.50
3/8) = 136,125
40. B (see computations below)

FOR ITEMS 7-9:

FIRST YEAR: Bane (50%) Centaur (20%) Warchief (30%) Total

Salary 26,000 13,000 39,000
Interest 14,300 10,400 14,300 39,000
Remainder (52,000) (20,800) (31,200) (104,000)
Total (11,700) (10,400) (3,900) (26,000)

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
MOCK EXAM (1ST) FOR BA 118.1 – ADVANCED FINANCIAL ACCOUNTING & REPORTING A.Y. 20-21

FOR ITEM 10:

Phoenix Razor Sandking Total

Salary 122,325 82,625 204,950
Interest 47,250 23,865 16,235 87,350
Remainder (139,308) (139,308) (139,308) (417,924)
Total 30,267 (115,443) (40,448) (125,624)

FOR ITEM 11:

Storm (33%) Spirit (67%) Total

Capital 48,000 96,000
P/L 10,860 21,720 32,580
Withdrawal (10,100) (16,000)
Ending 48,760 101,720 150,480
Reduction (18,600) (41,400) (60,000)
30,160 (33%) 60,320 (67%) 90,480

FOR ITEM 16-17:

Gerald Bea Julia Total

Interest 30,000 50,000 20,000 100,000
Salary 160,000 40,000 200,000
Bonus 150,000 150,000
Remainder 200,000 200,000 200,000 600,000
Total 540,000 290,000 220,000* 1,050,000
*workback from changes in Julia’s capital balances

FOR ITEM 19:

Net income: 33,000 – (5,250 + 16,750 – 4,550) = 15,550 less 6,755 and 105 expenses = 8,690

Harry Meghan Elizabeth Total

Capital balances 11,610 13,390 8,450 33,450
Net income 2,896.50 2,896.50 2,897 8,690
Note payable to Harry 3,000 3,000
Accrued interest 105 105
Receivable from Harry (1,250) (1,250)
Bonus to Meghan and Elizabeth (611.50) 305.75 305.75 ________
Balances 15,750 16,592.25 11,625.75 43,995
Sale of interest of Meghan (16,592.25) 16,592.25
Ending capital 28,245.00
MOCK EXAM (1ST) FOR BA 118.1 – ADVANCED FINANCIAL ACCOUNTING & REPORTING A.Y. 20-21

FOR ITEM 21:

BV Valuation Bonus Balance

Gloria 32,000 6,000 2,775 40,775
Noynoy 68,000 14,000 6,475 88,475
Rody 55,000 - (8,000) 47,000
Leni 60,000 - (1,250) 58,750
Total 215,000 20,000 235,000

FOR ITEM 23:

Ariana Lady Gaga Total

Beg Capital 125,000 75,000 200,000
Salary 25,000 - 25,000
Bonus (10%) 1,440 - 1,440
Remainder (5:3) 8,100 4,860 12,960
Drawings (20,000) (30,000) (50,000)
Ending Capital Balance 139,540 49,860 189,400
*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

FOR ITEM 34:

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

FOR ITEM 35-36:

Mimi Yuuuh Total

Capital, beginning 40,800 112,000 152,800
Additional investment 15,000 20,000 35,000
Drawings (20,800) (20,800) (41,600)
Interest (6% on average) 3,123 7,220 10,343
Bonus (10%) 6,966 - 6,966
Salaries 25,000 30,000 55,000
Residual 5,384 2,307 7,691
Capital, ending 75,473 150,727 226,200
MOCK EXAM (1ST) FOR BA 118.1 – ADVANCED FINANCIAL ACCOUNTING & REPORTING A.Y. 20-21

FOR ITEM 37:

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

FOR ITEM 40:

Ursa Warrior Total

Interest 18,000 13,800 31,800
Salaries 72,000 60,000 132,000
Remainder (31,900) (31,900) (63,800)
58,100 41,900 100,000