ASIA PACIFIC COLLEGE OF ADVANCED STUDIES

POST EXAMINATIONS
COURSE AUDIT

Name:________________________________ Date:______________________

Instructor: Isaac Tala, CPA, CTT Year / Program: ____________

I. Multiple Choice: Choose the best answer. Encircle the letter of the correct answer. (2pts each)
1-2. A, B, and C are partners. Their contributions are as follows: A, 600 000; B, 400 000 and C services. The partnership
agreed to divide profits and losses in the following percentages: A, 35%; B, 25% and C 40%. If there is a profit of 100 000,
how should the profit be distributed among partners?
a. A, 35 000; B, 35 000; C, 30 000
b. A, 30 000; B, 20 000; C, 50 000
c. A, 35 000; B, 25 000; C, 40 000
d. A, 60 000; B, 40 000; C, nothing
3-4. Maria, Eliza and Colleen are partners. Their contributions are as follows Maria, 600 000; Eliza, 400 000 and Colleen,
services. The partners agree on how to divide profits and losses based on their capital contribution. If there is a loss of
100,000, how should the loss be shared by the partners?
a. Maria, 60 000; Eliza, 40 000; Colleen, nothing
b. Maria, 50 000; Eliza 50 000; Colleen nothing
c. Maria, 35 000; Eliza 35 000; Colleen 30 000
d. Maria, 30 000; Eliza, 20 000; Colleen 50 000
5-6. Maria, Eliza and Colleen are partners sharing profits in the ratio of 3:2:1. The partnership provides 8% interest on
capital and a salary for Eliza of 80 000 per annum. Profit for 2020 was 840 000 and the year-end balances on partners’ capital

accounts are as follows: Maria, 200 000; Eliza 150 000 and Colleen, 120 000. What was Colleen’s share of residual profits
for 2020?
a. 120 400 b. 126 670 c. 130 000 d. 140 000
7-8. A partner has a capital balance of 400 000 for five months, 500 000 for four months and 600 000for three months. The
average capital is.
a. 483 333 b. 485 000 c. 471 680 d. 500 000
9-10. A contract where two or more parties bind themselves to contribute money, property or industry to a common fund.
a. Partners b. Partnership c. corporation d. Co-operative
11-12. Liable to the extent of his/her personal property
a. general partner b. limited partner c. dormant partner d. secret partner
13-14. Liable only to the extent of his capital contribution
a. general partner b. liquidating partner c. limited partner d. capitalist partner
15-16. One who contributes money or property to the common fund of the partnership
a. silent partner b. dormant partner c. capitalist partner d. general partner
17-18. One who contributes his knowledge or personal service to the partnership
a. nominal partner b. industrial partner c. limited partner d. liquidating partner
19-20. One whom the partners has appointed as manager of the partnership
a. secret partner b. dormant partner c. silent partner d. managing partner
21-22. One who is designated to wind up or settle the affairs of the partnership after dissolution
a. liquidating partner b. managing partner c. general partner d. nominal partner
23-24. One who does not take an active part in the business and not known as a partner
a. silent partner b. nominal partner c. dormant partner d. industrial partner
25-26. One who does not take an active part in the business and may be known as a partner
a. silent partner b. nominal partner c. dormant partner d. industrial partner
27-28. One who takes active part in the business but not known to be a party by the outside parties
a. silent partner b. dormant partner c. secret partner d. nominal partner
29-30. One who is actually not a partner but who represents himself as one
a. silent partner b. dormant partner c. secret partner d.. nominal partner
31-32. Nabua Is Trying To Decide Whether To Accept A Salary Of ₱ 40,000 Or A Salary Of ₱25,000 Plus A Bonus Of 10%

Of Profit After The Bonus As A Way Of Dividing Profits Among Partners. What Amount Of Profit Would Make The
Choices Equal?
A. ₱150,000 B. ₱165,000 C. ₱15,000 D. ₱135,000
33-34. A partnership shows the following account balances: sales P80,000; cost of sales, P40,000; operating expense,
P15,000; partners salaries P18,000; partners drawing, P6,000. The partnership profit is?
a) 25,000 b) 7,000 c) 1,000 d) 0

Use the following information to answer questions number 35-46.

 A and B divide partnership profits and losses solely on the basis of their average capital balances. A had 275,000 invested during all
of 2019 (Starting January) . B had invested 200,000 in January and invested another 74,000 on September 1. If profit was 800,000
during 2019.

35-36. A average capital

a. 275,000 b. 300,000 c. 456,000
37-38. B average capital
a. 224,667 b. 275,000 c. 100,000
39-40. Total average capital of partners
a. 499,667 b. 456,970 c. 347,037
41-42. A’s profit
a. 440,293.2 b. 359,706.8 c. 546,395.2
43-44. B’s profit
a. 440,293.2 b. 359,706.8 c. 546,395.2
45-46. A 1:3:2 is same as
a. 10%, 30%, 20% b.1/10, 3/10, 2/10 c.⅙, ½, ⅓
b.
47-48.. Partners Ba and Be have the following capital balances before admitting Bi to the partnership
Ba 100,000
Be 200,000
Total 300,000
Bi purchased 25% of A's Capital for 1,00,000

49-50. Compute the new capital balances of partner Bi after the admission
a. 25,000
b. 200,000
c. 80,000

51-52. Ba capital
a. 75,000
b. 100,000
c. 80,000

53-54. Be capital
a. 50,000
b. 200,000
c. 80,000

55-57. Nabua Is Trying To Decide Whether To Accept A Salary Of ₱ 40,000 Or A Salary Of ₱25,000 Plus A Bonus Of
10% Of Profit After The Bonus As A Way Of Dividing Profits Among Partners. What Amount Of Profit Would Make The Choices
Equal?
A. ₱150,000 C. ₱15,000
B. ₱165,000 D. ₱135,000

58-59. A partnership shows the following account balances: sales P80,000; cost of sales, P40,000; operating expense,
P15,000; partners salaries P18,000; partners drawing, P6,000. The partnership profit is?
a) 25,000
b) 7,000
c) 1,000
d) 0
60-61. On July 23, 1999, M and E formed a partnership and agreed to share profits and losses in the ratio of 3:7 respectively.
M contributed a parcel of land that costs 10 000. E contributed 40 000 cash. The land was sold to 18 000 on July 23, 1999,
immediately after the formation of the partnership. What amount should be recorded in E’s capital account on formation of the
partnership?
a. 15 000
b. 17 400
c. 10 000
d. 18 000

62-63. Which of the following is a characteristic of most partnerships?

a. unlimited life
b. limited liability
c. mutual contribution
d. division of profits
 64-65. If the partnership agreement does not specify how profit is to be allocated , profits and losses should be allocated
a. equally
b. in accordance with their capital contribution
c. in proportion to the average of capital invested during the period
d. equitably so that partners are well compensated for their time and effort

66-67. Which of the following items in the property, plant and equipment section of the statement of financial position are
not depreciated?
a. used equipment
b. 11-year-old building
c. new equipment
d. Land

68-70. A partner invested into a partnership a building with a P250,000 carrying value and P400,000 fair market value. The
related mortgage payable of 125,000 was assumed by the partnership. As a result of the investment, the partner’s capital account will
be credited for
a. 125,000
b. 275,000
c. 250,000
d. 400,000