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Self-check

Name: ___________________________________________ Block: ____________

(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.
1. A partnership may be dissolved without being liquidated.
2. The withdrawal of a partner from a partnership is a type of dissolution.
3. A new partner must have the consent of all the partners before being admitted into the
partnership.
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.
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
c. 231,000
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:
c. 56,000
d. 91,000

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
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
c. 3,000
d. 0