Apol, Bepol, and Cepol formed the ABC Partnership on Haidee and Irma are partners sharing profits

profits and losses

August 30, 2022, with the following assets measured at in the ratio of 60% and 40%, respectively. The
book values in their respective records, contributed by partnership balance sheet at August 30, 2018 foliows:
each partner:

Cash 9,720 Accounts payable 10,800

Apol Bepol Cepol Other assets 95,760 Haidee, Loan 4,680
Irma, Loan 7,200 Haidee, Capital 64,800
Cash 259,200.00 86,400.00 103,680.00
Irma, capital 32,400
Inventory 58,464.00 75,200.00 Total 112,680 112,680
At this date, Jessa was admitted as a partner for a
PPE 1,296,000.00 240,000.00 consideration of P35,100 cash for a 30% interest in
Totals 1,613,664.00 326,400.00 178,880.00 capital and in profits.
5. Assume Jessa is admitted by purchase of 30% each
of the original partners’ interest, determine how
A part of Apol’s cash contribution, P172,800, comes from the P35,100 will be apportioned to Haidee and
personal borrowings. Also, the PPE of Apol and Bepol are Irma, respectively.
mortgaged with the bank for P777,600 and P57,600,
respectively. The partnership is to assume responsibility 6. Assume Jessa is admitted by investing the P35,100
for these PPE mortgages. The fair value of the inventories to the partnership, determine the effects of any
contributed by Cepol is P73,440 while the PPE bonus over the capital balances of the original
contributed by Bepol at this date is P272,160. The partners:
partners have agreed to share profits and losses on a
5:2:3 ratio, to Apol, Bepol, and Cepol, respectively.
The following balances as at October 31, 2018 for the
1. What is the capital balance for each partner at the Partnership of Kiks, Leila, and Mimi were as follows:
opening of business on August 30, 2022?
2. What is the capital balance for each partner at Cash 50,000.00 Liabilities 15,000.00
August 30, 2022, instead, if the interest ration is Leila, Loan 15,000.00 Kiks, loan 22,500.00
given at 5:2:3 to Apol, Bepol, and Cepol, Non-cash assets 400,000.00 Kiks, capital 105,000.00
respectively? Leila, capital 97,500.00
Mimi,cap 225,000.00
Totals 465,000.00 465,000.00
On January 1, 2022, Eneru and Farah formed a
partnership by contributing cash of P324,000 and Kiks has decided to retire from the partnership on
P216,000, respectively. On February 1, 2022, Partner October 31. Partners agreed to adjust the non-cash
Eneru contributed an additional P108,000 cash to the assets to their fair market value of P490,000. The
partnership and on August 1, 2022 Partner Eneru made a estimated profit to October 31 is P100,000. Kiks will be
permanent withdrawal of P54,000. On May 1, 2022, paid P173,000 for her partnership interest inclusive of
Partner Farah contributed machinery with a fair market her loan which is repaid in full. Their profit and loss ratio
value of P72,000 and a net book value of P60,000 when is 3:3:4 to Kiks, Leila, and Mimi, respectively.
contributed. On November 1, 2022, Partner Farah
contributed an additional P36,000 cash to the 7. What will be the balance of Leila’s capital account
partnership. Both partners withdrew one-fourth of their after the retirement of Kiks.
salary allowances in 2022. The accounts of the partnership of XYZ at December 31,
The partnership reported a net income of P205,920 in 2022 are as follows:
2022 and the profit and loss agreement are as follows:
a. Interest at 6% is allowed on average capital balances: Cash 59,400.00 Liabilities 45,000.00
b. Salaries of P2,160 per month to each partner; Non-cash assets 524,700.00 Loan from Y 14,400.00
c. Bonus to Eneru of 10% net income after interest, Loan to X 10,800.00 X, Capital 148,500.00
salaries, and bonus; and Y, Capital 263,700.00
d. Balance to be divided in the ratio of 6:4 to Eneru and Z, Capital 123,300.00
Farah, respectively. Totals 594,900.00 594,900.00

They divide profit and losses 3:5:2 to X, Y, and Z,

3. Determine how the net income will be allocated to
the partners.
4. Determine the capital balances of the partners at
December 31, 2022.
respectively. They have decided to liquidate the
partnership at this date.
8. Determine the amount Partner X and Partner Y
would have received by the time Partner Z would
have received a cumulative amount of P32,400.
MARS and PAUTANG partnership’s balance sheet at
December 31, 2017, reported the following:
Total assets P 100,000
Total liabilities 20,000
Mars, capital 40,000
Pautang, capital 40,000

On January 2, 2018, MARS and PAUTANG dissolved their

partnership and transferred all assets and liabilities to a
newly formed corporation. At the date of incorporation,
the fair value of the net assets was P12,000 more than
the carrying amount on the partnership’s books. Of
which P7,000 was assigned to tangible assets and PS,000
was assigned to patent. MARS and PAUTANG were each
issued 5,000 shares of the corporation’s P1 par common
stock.
9. Immediately following incorporation, additional
paid-in Capital in excess of par should be credited
for ____________________.