2.3.2.4.
Multiple choice credited with annual salary allowances of
Question 1
1 / 1 pts
If the partners have not drawn up an
agreement, then they must share profits
and losses
by any appropriate ratio
according to capital contributions
by any means that will save taxes
equally
Question 2
1 / 1 pts
Among the various options available for
determining the partners' share of
net income are the following except:
capital contributions
capital contributions and service to the
partnership
stated fraction or ratio
loans to the partnership
Question 3
1 / 1 pts
Partners and Buddy share income in a 2:1
ratio, respectively. Each partner receives
an annual salary allowance of P36,000. If
the salaries are recorded in the accounts
of the partnership as an expense rather
than treated as an allocation of income,
the total amount allocated to each partner
for salaries and net income would be
more for Buddy and less for Amel
unchanged for both Arnel and Buddy
less for both Arnel and Buddy
more for Amel and less for Buddy
Question 4
1 / 1 pts
Partners Con and Debbie share income
and loss equally after each has been
P30,000 and P24,000, respectively. Under
this arrangement, Con will benefit by
P6,000 more than Debbie in which of the
following circumstances?
Only if the partnership does not incur a
loss for the year
Only if the partnership has earnings of
P54,000 or_more for the year.
in all earnings or loss situations
only if the partnership has earnings of at
least 6,000 for the year
Question 5
3 / 3 pts
The Entertainment Tours Partnership
earned P600,000 this year. The partners
have equal capital balances, and share
profits and losses ¼ and ¾ . The partners
will show share in partnership income of
amount that cannot be determined based
on the given data
PI 50,000 and P450,000 respectively
P600,OOO each
P300,OOO each
Question 6
3 / 3 pts
Falcon and Gerry are partners who share
profits equally and losses in a ratio. Falcon
and Gerry have beginning capital
,balances of P200,000 and P250,000
respectively, and made no withdrawals
during a period of two years. After a
profitable operations on the first year with
an income of P 150,000 and an
unprofitable operations on the second
year with a loss of P 120,000, the capital
balances of Falcon and Gerry will be
P195,OOO P285,OOO
PI 12,500 P135,ooo
P215,OOO P265,OOO
 P335,OOO P385,OOO
Question 7
3 / 3 pts
Honey and Irene share profits and losses
1/3 and 2/3 respectively. Honey receives a
monthly salary of 215,000. If Honey’s
capital balance is P250,000 at the
beginning of the year and P 150,000 at
the end of the year, and annual
partnership income after salaries is P
120,000, then Honey withdrew
P320,OOO
P130,ooo
PIOO,OOO
P180,OOO Correct Ans :355,000
Question 8
3 / 3 pts
The Harmony is a partnership of three
musicians who play at weddings and
office parties, The partnership's profits and
losses are allocated in proportion to the
partners' capital contributions. If the
partners John, Kevin and Louie have
capital contributions of ,PI 50,000, PI
50,000, and P250,000respectively,
What is each partner's share in the
income of P550,000?
PI 50,000, PI 50,000, and P250,000
150,000 250,000 250,000
183, 334 183,333 183,333
150,000 100,000 300,000
Question 9
3 / 3 pts
Mel and Noemi are partners in M & N
Enterprises. Partnership profits and losses
are allocated as follows: salaries of
P80,000 and PI 00,000 to Mel and
Noemi, respectively; 10% interest on their
beginning-capital balances; any
remaining profit is divided equally. At the
beginning of the year, their
capital balances are PI 80,000 and
P300,000. Partnership profit ofP400,000
is allocated as follows:
Mel -P 98,000 and Noemi -302,000
Mel - P184,ooo and Noemi - P216,OOO
Mel -190,000 and Noemi P210,OOO
Mel -P200,OOO and P200,OOO
Question 10
3 / 3 pts
Olsen, a partner in the Joyful Partnership,
has a 30% participation in partnership
income and loss. Olsen's capital account
had a net decrease of P120,000 during
the calendar year 2001. During 2001,
Olsen withdrew P260,000 (charged
against his capital account) and
contributed property valued at P50,000 to
the partnership. What was the net income
of the
partnership?
1,100,000
P466,667
P300,OOO
P 700,000
Question 11
3 / 3 pts
ll. The partnership agreement of Pat and
Rona provides that interest at 10% per
year is to be credited to each partner on
the basis of weighted average capital
balances. A summary of Rona's capital
account for the year ended December
31, 2001 is as follows:
Balance, January 1 P420,OOO
Additional investment, July 1 120,000
Withdrawal, August 1 45,000
Balance, December 31 495,000
What amount of interest should be
credited to Rona's capital account for
2001?
 51,750
49,500
P46,125
P45,750

Question 12
3 / 3 pts

Sarah and Trina formed a partnership in

the year 2001. The partnership
agreement provides for annual salary
allowances of PI 10,000 for Sarah and
P90,000 for Trina. The partners share
profits equally and losses in a 60:40 ratio.
The partnership had an income of P
160,000 for the year 2001 before any
allowance to partners.

What amount should be credited to each

partner's capital account as a result of the
distribution of the partnership income?

90,000 70,000
88,000 72,000
80,000 80,000
86, 000 74,000
Quiz Score: 28 out of 28