1. A partnership records a partner's
ship, at what amount should the
investment of asset in the business at
● the partner's book value of the
assets invested
● a value set by the partners
● the market value of the assets
invested
● any of above
2. Partner's investments may include
which of the following
● Cash
● Non- cash assets with liabilities to be
assumed
● Non - cash assets
● All of the above
3. A partnership
● is created by agreement of the
partners
● has a judicial personality in any
form, except where immovable
property or real rights are
contributed, in which case, the law
requires that a public instrument be
executed
● is dissolved by death of a prtner
● all of the above
4. Under the PFRS, what is the
acceptable reason when the amount
credited to a partner is greater than the
amount actually contributed by such
partner during partnership formation.
● Receipt or transfer of capital from
other partner by virtue of partner's
agreement resulting to bonus to the
said partner
● when there is bonus given by said to
the other partners.
● Recognition of goodwill by virtue of
special skills or reputation of said
partner
● recognition of impairment loss on the
property contributed by said partner
5.
noncash property be credited to the
contributing partner’s capital account?
● Fair value at the date of contribution.
● Contributing partner’s original cost.
● Assessed valuation for property tax
purposes.
● Contributing partner’s tax basis.
6. A large cash withdrawal by a partner
from Bernal, Ruiz, Adriano and Gogola,
which is viewed by all partners as a
permanent reduction of Ruiz's ownership
equity in the partnership, is recorded
with a debit to
● Ruiz, Capital
● Retained earnings
● loan receivable from Ruiz
● Ruiz, Drawing
7. He refers to a type of partnership
wherein all partners are liable to the
creditors pro-rata up t the extent of
personal or separate assets after the
partnership's assets are exhausted.
● Partnership by estoppel
● Limited Partnership
● General Partership
● Particular partnership
8. The partner's capital account credited
in the following cases except when it
involves the recording of the
● additional investment
● original investment
● debit balance of the drawing account
at the end of the period
● share in net income
9. Which of the following is not a
characteristic of partnership
● voluntary association
● mutual agency
● limited liability
● limited life
10. Which of the following statements
concerning the formation of a
partnership business is correct
 ● The juridical personality of the 13.
partnership arises from the issuance
of certification of registration
● The capital to be credited to each
partner upon contribution may not be ● 100,000
the amount actually contribute by ● 75,000
each partner. ● 25,000
● PFRS allows recognition of goodwill ● 110,000
arising from the formation of 14.
partnership
● The parties my become partners
only upon contribution of money or
property but not of industry or
service
11. Which of the following partnership ● 15,250
characteristics is a disadvantage? ● 15,375
● Unlimited liability ● 16,500
● Ease of dissolution ● 17,250
● Voluntary association Solution:
● Participation of partnership income Months Total
12. Outstan months in
Balances ding a yr WA
Beg.
Balance 140,000 12 12 140,000
July 1
investment 40,000 6 12 20,000
August 1
withdrawal (15,000) 5 12 (6,250)
● A WA
● B Capital
● C Bal. 153,750
● D Interest
Solution: rate 10%
Guia Chen Interest on
Cash 20,000 30,000 WACB 15,375

Inventory 15,000 15.

Building 40,000
F and E 15,000
Mortgage
Payable -10,000 ● 340,000
● 360,000
Adjusted CB 35,000 75,000
● 300,000
 ● 330,000 Solution:
Solution: Partnersh
Cash 50,000 Rey Sam Tim ip
Land 310,000 Cash 60,000 72,000 180,000 312,000
Mortgage Payable (30,000) Deliv
ery
F, Capital 330,000
Equip
16. Abel and Carr formed a partnership ment 900,000 900,000
and agreed to divide initial capital Com
equally, even though Abel contribute p.
PHP 100,000 and Carr contributed PHP Equip
84,000 in identifiable assets. Under the ment 51,000 219,000 15,000 285,000
bonus approach to adjust the capital Mortg
accounts, Carr’s unidentifiable asset age
should be debited for Paya
● 46,000 ble (540,000) (540,000)
● 16,000 Adjus
● 8,000 ted
● 0 CB 471,000 291,000 195,000 957,000
17.
P/L
Ratio 40% 40% 20%
Intere
st 382,800 382,800 191,400 957,000
Cash
recei
pt
(pay
ment) 88,200 (91,800) 3,600
18. AAA and BBB are partners with
capital of P60,000 and P20,000,
respectively. Profits and losses are
divided in the ratio of 60:40. AAA and
BBB decided to form a new partnership
with CCC, who invested land valued at
● A P15,000 for a 20% capital interest in the
● B new partnership. CCC’s cost of the land
● C was P12,000 the partnership elected to
● D use the bonus method to record the
admission of CCC into the relationship.
CCC’s capital account should be
credited for
● 12,000
● 15,000
 ● 16,000 Solution:
● 19,000 Nora, Capital 210,000
Solution:
Nora, Capital ratio 70%
AAA, Capital 60,000
Total 300,000
BBB, Capital 20,000
May, Capital ratio 30%
CCC, Capital 15,000
Total 90,000
Total CB 95,000
Cash (42,000)
Capital interest 20%
Merchandise 48,000
CCC, Capital 19,000
What is the amount of cash to be
19. invested by May:
● 72,000
● 62,000
● 26,000
● 10,000,000 ● 65,000
● 20,000,000 Solution:
● 25,000,000 AR 53,000
● 50,000,000 Inventory 107,000
20-21
Equipment 34,000
Notes Payable (56,000)
Capital Balance 138,000
Total Capital 210,000
Cash 72,000
22-24

What is the value of the merchandise to

be invested by Nora?
● 48,000
● 84,000
● 42,000
● 38,000
The total capital of the partnership after
the admission of RR is:
● 296,875
● 301,250
● 237,500
● 286,850
Solution: nt)
Partnersh
OO PP ip
Unadjusted CB 133,000 108,000 241,000
ABD (2,700) (1,800) (4,500)
Inventories 3,000 2,000 5,000
Accrued
expenses (2,400) (1,600) (4,000)
Adjusted CB 130,900 106,600 237,500
Total
percentage
share of OO
and PP (50% +
30%) 80%
Total capital of
partnership after
admission of RR 296,875
The cash to be invested by RR is:
● 60,250
● 47,500
● 50,000
● 59,375
Solution:
Total Capital 296,875
Profit ratio 20%
Cash Contribution 59,375
Cash settlement between OO and PP is:
● OO will pay PP P17,537.50
● PP will pay OO P17,537.50
● OO will invest P17,537.50
● PP will withdraw P17,537.50
Solution:
OO PP Partnership
Capital 130,900 106,600 296,875
Profit
ratio 50% 30%
Interest 148,438 89,063
Cash
receipt
(payme (17,537.50) 17,537.50