1.

Answer: A Florie Mae Mary Rose Total Journal Entry:

Cash ₱200,000.00 ₱200,000.00 Cash
Computer (FMV) ₱55,000.00 55,000.00 Computer
Total ₱200,000.00 ₱55,000.00 ₱255,000.00 Florie Mae, Capital
Mary Rose, Capital
To record investment of
#
Cash
Computer
To record sale of comp
fair market value.
#

2. Answer: B Angel Vivien Jhonabelle Total Computation:

FMV FMV FMV Angel & Vivien: P40,00
Office Eqpt, ₱40,000.00 ₱40,000.00 Divided by
Delivery Eqpt. ₱80,000.00 80,000.00 Total agreed capitaliza
Cash ₱60,000.00 60,000.00 Multiply by Johnabelle
Total ₱40,000.00 ₱80,000.00 ₱60,000.00 ₱180,000.00 Jhonabelle cash cont

3. Answer: A
Kyla Gayle, Capital
Cash ₱100,000.00
Land 300,000.00
Mortgage pay. (50,000.00)
₱350,000.00

4. Answer B
Total agreed capitalization (P300,000.00/60%) ₱500,000.00
Less: Julieta's contribution (60%) 300,000.00
Althea's 40% share in the partnership 200,000.00
Less:Althea's noncash contributions:
Land (FMV) ₱70,000.00
Building (FMV 90,000.00
Mortgage assumed by the
partnership (40,000.00) 120,000.00
Additional cash contribution
by Althea ₱80,000.00

5. Answer: D
TCC TAC Increase(decrease)
 James Lee ₱100,000.00 ₱92,000.00 -₱8,000.00
Diana Moore 84,000.00 92,000.00 8,000.00 Bonus to Diana Moore
Total ₱184,000.00 ₱184,000.00 -0-

*** Bonus is not recorded as intangible asset.

6. Answer: D
Andrie Joshua Mico Total
Average capital balances ₱472,500.00 ₱238,650.00 ₱162,350.00 ₱873,500.00
Interest rate 10% 10% 10% 10%
Interest on average capital 47,250.00 23,865.00 16,235.00 87,350.00
Salaries 122,325.00 - 82,625.00 204,950.00
Residual loss:
P125,624.00 + 87,735.00 +
P204,950.00 (139,308.00) (139,308.00) (139,308.00) (417,924.00)
Partners shares in residual loss ₱30,267.00 -₱115,443.00 -₱40,448.00 -₱125,624.00

7. Answer: D
Date Investment Capital Fraction of year
Withdrawal balances Unchanged
Janrex Jan. 1 120,000.00 120,000.00 4/12
May 1 (20,000.00) 100,000.00 3/12
Aug. 1 10,000.00 110,000.00 2/12
Oct. 1 (10,000.00) 100,000.00 3/12
Average capital balance
John Benet Jan. 1 80,000.00 80,000.00 4/12
May 1 (10,000.00) 70,000.00 2/12
July 1 20,000.00 90,000.00 3/12
Oct. 1 -5,000.00 85,000.00 3/12
Average capital balance

Distribution of profit:
Janrex: P240,000.00 X P108,333.00/190,417.00 = ₱136,542.00
John Benet: P240,000.00 X P82,084.00/190,417.00 103,458.00
₱240,000.00

8. Answer: A
Total Janrex John Benet
Net profit ₱240,000.00
Interest on ending capital balances:
Janrex: P100,000.00 x 20% (20,000.00) ₱20,000.00
 John Benet: P85,000.00 x 20 (17,000.00) ₱17,000.00
Balance: equally:
)P240,000.00 - P37,000.00) (203,000.00) 101,500.00 101,500.00
-0- ₱121,500.00 ₱118,500.00

9. Answer: D

Total Czarina Nerisa

Net income ₱9,600.00
Salaries (23,200.00) ₱7,200.00 ₱16,000.00
Interest on beginning capital:
Czarina: (20,000.00 x 10% (2,000.00) 2,000.00
Nerisa: (16,000.00 x 10%) (1,600.00) 1,600.00
Balance: equally 17,200.00 (8,600.00) (8,600.00)
-0- ₱600.00 ₱9,000.00

10. Answer: C

Net income before the bonus = ₱240,000.00 125%

Net income after the bonus 192,000.00 100% (240,000.00/ 125%)
Bonus to Irish ₱48,000.00 25% (192,000.00 x 25%)
 ₱200,000.00
55,000.00
orie Mae, Capital 200,000.00
ary Rose, Capital 55,000.00
To record investment of partners.
#
55,000.00
55,000.00
To record sale of computer at
fair market value.
#

Angel & Vivien: P40,000.00 + 80,000.00 = P 120,000.00

Divided by 2/3
Total agreed capitalization 180,000.00
Multiply by Johnabelle capital interest 1/3
Jhonabelle cash contribution ₱60,000.00
Average Capital
balances
40,000.00
25,000.00
18,333.00
25,000.00
₱108,333.00
26,667.00
11,667.00
22,500.00
21,250.00
₱82,084.00
₱190,417.00
000.00/ 125%)
000.00 x 25%)