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Self-check

Name: Frankie C. Mata Block: ABM 12-B Saint Faustina

(Kindly detach & include to the papers you will submit as your assignment)
Directions: Perform the task below. Write your answers on the space provided. You may
attach an extra sheet if needed.

TRUE OR FALSE: Write T if the statement is True and F if the statement is False.
F 1. A partnership may be dissolved without being liquidated.
F 2. The withdrawal of a partner from a partnership is a type of dissolution.
T 3. A new partner must have the consent of all the partners before being admitted into
the partnership.
F 4. Nelson Daganta purchased directly from Antonio Lao, Jr.’s P30,000 partnership
interest for P50,000. The entry to record the transaction is for P30,000.
T 5. Li Lao directly purchased Mi Mao P250,000 partnership interest for P300,000. The
entry to record the transaction is for P300,000.

PROBLEMS: (For each questions, write your solution on the space provided)
1. The capital accounts of the Guerrero and Alajar partnership on Sept. 30, 2019 were:
Guerrero, Capital(75% profit percentage) 140,000
Alajar, Capital (25% profit percentage) 56,000
Total capital 196,000

On Oct.1, Franco was admitted to a 35% interest in the partnership when he purchased
35% of each existing partner’s capital for P100,000, paid directly to Guerrero and Alajar. How
much will be credited to Franco upon admission?
a. 68,600 Solution:
b. 100,000 Guerrero 140,000 x 35%= 49,000
c. 231,000 Alajar 56,000 x 35%= 19,600
Franco---------------- = 68,600
d. 49,000

What is the capital balance of Alajar after the admission of Franco to the partnership?
a. 91,000
b. 36,400 Solution:
56,000
c. 56,000
(19,600)
d. 91,000 = 36,400

2. Alpha Co. capital balances are: Ace $30,000, Bly $25,000, and Cox $20,000. The
partners share income equally. Day is admitted to the firm by purchasing one-half of Cox’s
interest for $13,000.

What was the book value of Cox’s interest sold to Day?

a. 20,000 Solution:
b. 10,000 20,000 x 0.5 = 10,000
c. 13,000
d. 23,000

How much was Cox’s personal loss in selling her interest to Day?
a. 1,500 Solution:
b. 2,000 10,000
c. 3,000 (13,000)
d. 0 = (3,000)