:::PARTNERSHIP FORMATION:::

Problem 3: Exercises
1.Capital balance for both partnership after the formation;
Cash 180,000
A/R 60,000
Inventory 120,000
Land 600,000
A/P 60,000
Sunny, Capital 300,000
Gloomy, Capital 600,000

2. Based on no.1, 30:70 interest ratio;

a. using Sunny as the base, Gloomy shall contribute P100,000
b. No deficiency on Sunny's Capital using Gloomy as the base.

3. Still based on #1, bonus method is used for partners to have equal capital
credits
Gloomy, Capital 150,000
Sunny, Capital 150,000

4. Still based on #1, cash settlement between partners to have equal capital
credits;
No journal entry in books

5. Sunny shall investment asset amounting to P150,000, while Gloom shall withdraw
P150,000

Problem 4: Multiple choice - Computational

1. C
2. B
3. A
4. D
5. C

:::PARTNERSHIP OPERATIONS:::
Problem 3: Exercises
1a. Partner's respective shares in profit:
Partnership Profit = P200,000
A- P120,000; B-P80,000

2. Partnership's Profit = P200,000

A- P 140,000; B-P60,000

3. Partnership's Profit = P200,000

A-P124,000; B-P76,000

4. Partnership's Profit = P200,000

A- P151,300; B-P48,700

5.Interest on Weighted Average of Partner A's Capital balance:

Solution: P10,586.67
Average
April 1 - 100,000 x 9/9 P100,000
June 30 - (21,000) x 6/9 (14,000)
Sep 30 - 8,000 x 3/9 2,666.67
Dec. 1 - (4,000) x 1/9 (444.44)
------------
Total P 88,222.23
Interest x 12%
Interest on Average Capital P 10,586.67

6. Partnership's Profit, net of salaries, bonus, and interst = P60,000

Total Partnership's Profit before salaries, bonus, and interest = P222,222.22
A- P172,222.22; B- P50,000

7. Partnership's Loss = P120,000

A- (P68,800); B- (51,200)

8. Partnership's Profit before any allocation: P660,000

Ending balance of each partner:
A- P315,000; B- P345,000

MC-Computational:
1. B
2. C
3. D
4. C
5. A
6. A
7. D
8.?
9. B
10.C

AST - Rante, Liz, Ruad_Binaluyo

Partnership Formation & Operations:
Problem 1-1
1. Deejay, Capital P 375,000
Joshua, Capital P 350,000
Partnership Asset - P 750,000
Partnership Liab. - (P 25,000)

1.3 Deejay, Capital P 12,500

Joshua, Capital 12,500
Joshua, Capital - P362,500

Problem 1-2
1. Net asset contribution method:
Gryffindor, Capital P60,000
Slytehrin, Capital P130,000
1.2 equal capital credit;
Gryffindor, Capital P95,000
Slytehrin, Capital P95,000
1.3 capital credit is equal to profit ratio; 40:60
Griffindor, Capital P76,000
Slytherin, Capital P114,000

Problem 1-3
total Capital of the Partnership - P365,000

Problem 1-4 - Capital credited to each partner

A - P500,000
B - P400,000
C - P500,000

Problem 1-5 -
Cash 90,000
Land 40,000
Equipment 40,000
Joe, Capital 85,000
Rob, Capital 85,000

Problem 1-6 - Capital credited to S

S - P65,000
T - P80,000

Problem 1-7
a. David must contribute P180,000 (computation: Net contribution of Carlo / 2/3 x
1/3) = 360,000 / 2/3 x 1/3 = 180,000
b. Total capital of the partnership is P540,000 (computation: Net contribution of
Carlo/2/3)
c. Total Asset of Partnership P628,000 (computation: 68,000 + 137,740 + 230,000 +
180,000 + 12,260)
d. Adjustment Entries:
Inventory 30,000
Prepaid Expense 12,260
Allowance for BDE 4,260
Accrued Expense 8,000
Carlo, Capital 30,000

Problem 1-8
a. Total Cash of the partnership P486,400
Computation:
Cash P212,000
Additional Cash 274,400
Total P486,400

Net contribution of Malachi P812,000

% of capital to be credited to Haggai 120%
Capital to be credited to Haggai 974,400
Actual Net asset of Haggai 700,000
Additional Cash to be contributed 274,400

b. Total assets of the partnership P2,206,400 (computation: 974,400 + 812,000 +

144,000 + 60,000 + 216,000)
c. Total capital of the Partnership P1,786,400

Problem 1-9
a. Total cash of the Partnership = P502,500
Cash + 147,500 = 1.1 x (cash + 111,250)
1.1cash - cash = 122,375 - 147,500
.1 = 25,125
-- ------
.1 .1

= 251,250 cash each should contribute

b. Total Asset of Partnership = P 787,500

Computation : 502,500 + 26,250 + 19,500 + 45,000 + 20,750 + 91,250 + 82,250)
c. Total Capital of the Partnership = P 761,250
computation: Total assets - Liabilities assumed by the Partnership

Problem 1-10
a. Decrease of 8,000

Problem 1-11
a. Net income of P50,000
Flores - P15,729.17
Gilroy - P18,541.67
Hansen - P15,729.17

B. Loss of P20,000
Flores - P2,229
Gilroy - (P24,458)
Hansen - P2,229

Problem 1-12
a. Net income is P250,000
Evans - P60,000
Fitch - P74,000
Gault - P116,000

b. Net loss P36,000

Evans - P7,800
Fitch -(P4,300)
gault -(P39,500)

Problem 1-13
X Y Z
Interest 56,400 40,500 14,700
Salaries 198,000
Share (19,650) (23,580) (35,370)
Total 36,750 214,920 (20,670) P231,000
Ending Capital 376,000 270,000 98,000
Total 412,750 484,920 77,330

Problem 1-16. Net income = P290,000

40,000 = 25,000 + 10%(Net income - 125,000 - B)
40,000 - 25,000 = 10%(Net income - 125,000 - B)
15,000 = 10%(Net income - 125,000 - B)
15,000 = 10%Net income - 12,500 - 10%B
27,500 = 10%Net income - 10%B
275,000 = Net income - Bonus

Bonus = 15,000 = 40,000 - 25,000

Net income = 275,000 + 15,000

= P290,000

Problem 1-17: Allocate the missing net income: Don't know. there is no given
income, hence, computation for the share of each partner from the remaining profits
after other incentives is undetermined.

Multiple choice (Problems)

1. B
2. D
3. A
4. B
5. C

Instructional Material - HOBA

2a. Net income (Loss) of the agency
Sales P64,380
COS (51,504)
------
 GP P12,876
OPEX ( 9,490)
DEPEX ( 250)
--------
NI P 3,136
b. Entries
Samples- QC 15,750
Shipment to 15,750

Working fund- Agency 9,000

Cash 9,000

Cash 20,400
Accounts receivable 43,980
Sales - Agency 64,380

COS - Agency 51,504

Shipment to 51,504

F&F - Agency 25,000

Cash 25,000

Expenses - Agency 3,815

Cash 3,815

Impairment Expenses 5,675

Samples 5,675

Depreciation expense 250

Accu. Dep. 250

3. a. Unadjusted balance of Home-Office and Branch accounts

Home-Office-(P13,600)
Branch - P28,400

b. Adjusted balance
Home-Office - P(19,500)
Branch - P 19,500

c. Gawin mo

Jillian, maari bang pumasok ka sa confession room.

Maganda araw din sa iyo.
Balita ko ay may nabubuong alitan sa loob ng aking bahay.
Alam niyo namang ayokong nagkakaganito kayo sa loob. Kung kaya't napag-isipan kong
ibigay na sa inyo ang inyong task upang ito ay malutas.
Nakikita mo ba ang papel na nasa iyong gilid. Kuhain mo ito at basahin nang marinig
ng iba mo pang kasamahan.
Maasahan ko ba na aking aking hamon ay inyong maisasagawa?