Quiz # 2 - AFAR 2 - BSAIS (1st Semester A.Y.

21-22) (Copy)
Topics Covered: Partnership Dissolution and Liquidation

Points:

26/50
1

A and B have capital balances of P65,000 and P35,000 and share profits 3:2. C is
admitted as a partner and is given 25% interest in the firm upon investing
P40,000 cash. Profits are to be shared 5:3:2 by A, B and C. D subsequently enters
the partnership by investing P25,000 for a 20% interest in assets and a 20% share
in the firm's profits. Former partners share the balance of profits in their original
ratio. Partner A has difficulty getting along with D and withdraws from the
partnership. The partnership pays P73,000 cash for A's interest. How much is the
capital balance of C after A's withdrawal under the bonus method (round off
final answer to the nearest peso amount)?

(0/3 Points) 31 000

Correct answers: 31000

On December 31, 2019, the accounting records of MM, NN and OO Partnership

(a general partnership) included the following ledger account balances (see
image below):

Total assets of the partnership amounted to P299,062.50, including P32,812.50

cash, and partnership liabilities totaled, P93,750. The partnership was liquidated
on December 31, 2019, and OO received P52,031.25 cash pursuant to the
liquidation. MM, NN and OO shared net income and losses in a 5:3:2 ratio,
respectively.

The cash received by MM after the liquidation is (round off to the nearest peso
amount):

(0/3 Points) 37 266

Correct answers: 37266

XX and YY are partners who have capital of P300,000 and P240,000 sharing
profits in the ratio of 3:2. ZZ is admitted as a partner upon investing P250,000 for
25% interests in the firm, profits are to be allocated equally. Given the choice
between goodwill and bonus method, ZZ will:

(3/3 Points)
Prefer bonus method due to ZZ’s gain of P17,500

Prefer bonus method due to ZZ’s gain of P70,000

Prefer goodwill method due to ZZ’s gain of P70,000

Be indifferent for the goodwill and bonus methods are the same

Cannot be determined

A and B have capital balances of P65,000 and P35,000 and share profits 3:2. C is
admitted as a partner and is given 25% interest in the firm upon investing
P40,000 cash. Profits are to be shared 5:3:2 by A, B and C. D subsequently enters
the partnership by investing P25,000 for a 20% interest in assets and a 20% share
in the firm's profits. Former partners share the balance of profits in their original
ratio. Partner A has difficulty getting along with D and withdraws from the
partnership. The partnership pays P73,000 cash for A's interest. How much is the
capital balance of B after A's withdrawal under the bonus method (round off
final answer to the nearest peso amount)?

(0/3 Points) 31 000

Correct answers: 31000

A and B have capital balances of P65,000 and P35,000 and share profits 3:2. C is
admitted as a partner and is given 25% interest in the firm upon investing
P40,000 cash. Profits are to be shared 5:3:2 by A, B and C. D subsequently enters
the partnership by investing P25,000 for a 20% interest in assets and a 20% share
in the firm's profits. Former partners share the balance of profits in their original
ratio. Partner A has difficulty getting along with D and withdraws from the
partnership. The partnership pays P73,000 cash for A's interest. How much is the
capital balance of D after A's withdrawal under the bonus method (round off
final answer to the nearest peso amount)?

(0/3 Points) 30 000

Correct answers: 30000

On December 31, 2019, the accounting records of MM, NN and OO Partnership

(a general partnership) included the following ledger account balances (see
image below):

Total assets of the partnership amounted to P299,062.50, including P32,812.50

cash, and partnership liabilities totaled, P93,750. The partnership was liquidated
on December 31, 2019, and OO received P52,031.25 cash pursuant to the
liquidation. MM, NN and OO shared net income and losses in a 5:3:2 ratio,
respectively.

The amount realized from sale of non-cash assets is (round off to the nearest
peso amount):

(3/3 Points) 217 031

7

Terry, Vivian and Walter have decided to liquidate their partnership. Account
balances on January 1, 2020 are, cash, P120,000, other assets P120,000, accounts
payable P40,000, Terry, capital (30%) P85,000, Vivian, capital (30%) P25,000 and
Walter, capital (40%) P90,000 respectively. The partners agree to keep a P10,000
contingency fund and to distribute available cash immediately. How much cash
will be distributed to Terry?

(2/2 Points) 40 000

8

XX and YY are partners who have capital of P300,000 and P240,000 sharing
profits in the ratio of 3:2. ZZ is admitted as a partner upon investing P250,000 for
25% interests in the firm, white the other partners continue to participate profits
and losses in their original ratio. Given the choice between goodwill and bonus
method, ZZ will:

(0/3 Points)
Prefer goodwill method due to ZZ’s gain of P70,000

Cannot be determined.

Prefer bonus method due to ZZ’s gain of P70,000

Be indifferent for the goodwill and bonus methods are the same.

Prefer bonus method due to ZZ’s gain of P17,500

On December 31, 2019, the accounting records of MM, NN and OO Partnership

(a general partnership) included the following ledger account balances (see
image below):

Total assets of the partnership amounted to P299,062.50, including P32,812.50

cash, and partnership liabilities totaled, P93,750. The partnership was liquidated
on December 31, 2019, and OO received P52,031.25 cash pursuant to the
liquidation. MM, NN and OO shared net income and losses in a 5:3:2 ratio,
respectively.

The cash balance after payment of liabilities is (round off to the nearest peso
amount):

(3/3 Points) 156 094

10

Gardo and Gordo formed a partnership on July 1, 2019 to operate two stores to
be managed by each of them. They invested P15,000 and P10,000 and agreed to
share earnings 60% and 40%,respectively. All their transactions were for cash, and
all their subsequent transactions were handled through their respective bank
accounts as summarized below:
Gardo
Cash receipts P39,550.00
Cash disbursements 31,137.50

Gordo
Cash receipts P32,622.50
Cash disbursements 35,347.50

On October 31, 2019 all remaining non-cash assets in the two stores were sold
for cash of P30,000. The partnership was dissolved, and cash settlement was
effected. In the distribution of the P30,000 cash, Gordo received (round off to
the nearest peso amount):

(3/3 Points) 17 000

11

On December 31, 2019, the accounting records of MM, NN and OO Partnership

(a general partnership) included the following ledger account balances (see
image below):

Total assets of the partnership amounted to P299,062.50, including P32,812.50

cash, and partnership liabilities totaled, P93,750. The partnership was liquidated
on December 31, 2019, and OO received P52,031.25 cash pursuant to the
liquidation. MM, NN and OO shared net income and losses in a 5:3:2 ratio,
respectively.

The cash received by NN after the liquidation is (round off to the nearest peso
amount):

(0/3 Points) 66 797

Correct answers: 66797

12

Gardo and Gordo formed a partnership on July 1, 2019 to operate two stores to
be managed by each of them. They invested P15,000 and P10,000 and agreed to
share earnings 60% and 40%,respectively. All their transactions were for cash, and
all their subsequent transactions were handled through their respective bank
accounts as summarized below:

Gardo
Cash receipts P39,550.00
Cash disbursements 31,137.50

Gordo
Cash receipts P32,622.50
Cash disbursements 35,347.50

On October 31, 2019 all remaining non-cash assets in the two stores were sold
for cash of P30,000. The partnership was dissolved, and cash settlement was
effected. In the distribution of the P30,000 cash, Gardo received (round off to
the nearest peso amount):

(3/3 Points) 13 000

13

On December 31, 2019, the accounting records of MM, NN and OO Partnership

(a general partnership) included the following ledger account balances (see
image below):

Total assets of the partnership amounted to P299,062.50, including P32,812.50

cash, and partnership liabilities totaled, P93,750. The partnership was liquidated
on December 31, 2019, and OO received P52,031.25 cash pursuant to the
liquidation. MM, NN and OO shared net income and losses in a 5:3:2 ratio,
respectively.

The loss on realization is (round off to the nearest peso amount):

(3/3 Points) 49 219

14
F, G and H are partners who agree to form a corporation. Their capital balances
are F, P100,000; G, P100,000 and H, P200,000 and they share profits equally. All
their assets and liabilities are to become the corporation's. Net assets of P400,000
will be revalued at P550,000. The substantial revaluation is only from the land
which H contributed to the partnership ten years ago at P100,000. At P1 par value
per share, how many shares of stocks will G receive?

(0/2 Points) 150 000

Correct answers: 150000

15

F, G and H are partners who agree to form a corporation. Their capital balances
are F, P100,000; G, P100,000 and H, P200,000 and they share profits equally. All
their assets and liabilities are to become the corporation's. Net assets of P400,000
will be revalued at P550,000. The substantial revaluation is only from the land
which H contributed to the partnership ten years ago at P100,000. At P1 par value
per share, how many shares of stocks will F receive?

(0/2 Points) 150 000

Correct answers: 150000

16

A, B and C have capital balances of P112,000, P130,000 and P58,000, respectively,

and share profits in the ratio 3:2:1. D is to invest cash in the partnership for a one-
fourth interest.

Assume D receives one-fourth interest in the assets of the partnership, and D is

credited with P20,000 of the bonus from the old partners that is recognized upon
D's admission. How much cash must D invest (round off final answer to the
nearest peso amount)?

(3/3 Points) 73 333

17

F, G and H are partners who agree to form a corporation. Their capital balances
are F, P100,000; G, P100,000 and H, P200,000 and they share profits equally. All
their assets and liabilities are to become the corporation's. Net assets of P400,000
will be revalued at P550,000. The substantial revaluation is only from the land
which H contributed to the partnership ten years ago at P100,000. At P1 par value
per share, how many shares of stocks will H receive?

(0/2 Points) 250 000

Correct answers: 250000

18

A, B and C have capital balances of P112,000, P130,000 and P58,000, respectively,

and share profits in the ratio 3:2:1. D is to invest cash in the partnership for a one-
fourth interest.

Assume D receives one-fourth interest in the assets of the partnership, which

includes credit for P25,000 of goodwill that is recognized upon admission. How
much cash must D invest (round off final answer to the nearest peso
amount)?

(3/3 Points) 75 000

This content is created by the owner of the form. The data you submit will be sent to the form owner. Microsoft is not
responsible for the privacy or security practices of its customers, including those of this form owner. Never give out
your password.

Powered by Microsoft Forms

Privacy and cookies

| Terms of use