Quiz Accounting

Quiz Accounting
1. The statement of financial position of the partnership A, B and C shows: Cash, P22,400; Other
Assets, P212,000; Liabilities, P38,400; A, Capital (50%) P76,000; B, Capital (25%) P64,000;
and C, Capital (25%) P56,000.
If C received P10,000 from the first cash distribution, how much was the total cash distributed to
partners?
 P20,000
 P18,000
 P44,000
 P28,000
2. Jack and Beans, who share profits and losses in the ratio 3:7, decided to liquidate their Talk
Partnership. The partner’s capital balances are P300,000 and P190,000, respectively.
If on final settlement of partner’s claims Beans received P99,000, how much did Jack receive?
 P89,000
 P261,000
 None
 P234,000
3. The statement of financial position of the partnership A,B and C shows: Cash, P22,400; Other
If A received a total of P10,000 from partnership liquidation, how much was the proceeds from
the sale of all non-cash assets?
 Answer not determinable

 P127,000
 P85,000
 P64,000
4. The statement of financial position of the partnership A,B and C shows: Cash, P22,400; Other
If B received a total of P31,000 from partnership liquidation, how much was the loss on
realization?
 P85,000
 P127,000
 P64,000
5. Jurado, Katindig, Lazaro, and Marcelo are partners sharing earnings in the ratio of 3:4:6:8.
The balance of their capital accounts on December 31, 2018 are as follows:
Jurado P1,000
Katindig 25,000
Lazaro 25,000
Marcelo 9,000
The partners decided to liquidate, and they accordingly convert the non-cash assets into P23,200
of cash. After paying the liabilities amounting to P3,000, they have P22,200 to divide. Assume
that a debit balance in any of partner’s capital is uncollectible. The book value of non-cash assets
amounted to:
 P63,000
 P45,400
 P25,200
 P61,000
Jurado P1,000
Katindig 25,000
Lazaro 25,000
Marcelo 9,000
that a debit balance in any of partner’s capital is uncollectible. The share of Jurado in the loss
upon conversion of the non-cash assets into cash was:
 P5,400
 .P5,257
 P1,000
 P4,792
7. In a cash priority program for use in installment liquidation, the partner with the highest loss
absorption balance is the most vulnerable partner. The amount of cash to be distributed to
partners in installment liquidation can be determined by preparing a cash priority program.
 Both statements are true.

 Only statement 2 is true
 Both statement are false
8. Partners Roger, Sergio and Tito, who share profit and loss in the ratio of 3:5:2, respectively
have decided to liquidate their partnership. The Statement of Financial Position of the
partnership at the time of liquidation is shown below:
Assets Liabilities and Capital
Cash P120,000 Accounts Payable P93,000
Other Assets 360,000 Loan from Sergio 30,000
Roger, Capital 108,000
Sergio, Capital 120,000
_____ Tito, Capital 129,000
P480,000 P480,000
The partners desire to prepare an installment distribution schedule showing how cash would be
distributed to partners as assets are realized. In the schedule of maximum absorbable loss, the
maximum absorbable loss for each partner would be
 Roger, P360,000; Sergio, P240,000; Tito, P645,000

9. A, B and C decided to liquidate their partnership business. The financial position of the
partnership shows: A, Capital (30%) P210,000; B, Capital (20%) P150,000; C, Capital (50%)
P210,000. Upon liquidation, all of the partnership’s assets are sold and sufficient cash is realized
to pay all liabilities except one for P30,000. All partners are solvent except C.
How much is the additional contribution required of B?
 P24,000
 P0
 P6,000
 P18,000
10. The Statement of Financial Position for the partnership of Eclavo, Eclara, and Elorda, who
share profits and losses in the ratio 4:5:1, is as follows:
Inventory 720,000 Eclavo, Capital 320,000
Eclara, Capital 90,000
_____ Elorda, Capital 110,000
P820,000 P820,000
Assuming Eclara is an insolvent partner, and the inventory is sold for P360,000, how much
should Eclavo receive upon liquidation of the partnership?
 P46,000
 P90,000
 None
 P104,000
Jurado P1,000
Katindig 25,000
Lazaro 25,000
Marcelo 9,000
that a debit balance in any of partner’s capital is uncollectible. When the P22,200 was divided,
Lazaro got
 P8,320
 P14,200
 P6,342
 P10,800
12. The following is the priority sequence in which liquidation proceeds will be distributed for a
partnership:
 Partnership drawings, partnership liabilities, partnership loans, partnership capital

balances
 Partnership liabilities, partnership capital balances, partnership loans
 Partnership liabilities, partnership loans, partnership drawings, partnership capital
balances
 Partnership liabilities, partnership loans, partnership capital balances
P480,000 P480,000
distributed to partners as assets are realized. If Roger has received P30,000, how much would
Sergio had received?
 P30,000
 P77,000
 None
 P20,000
If all partnership assets and liabilities are realized and settled at their carrying amounts, how
much would Beans receive from the liquidation?
 P190,000
 P120,000
 P300,000
P480,000 P480,000
distributed to partners as assets are realized. The schedule of possible losses on capital balances
would indicate that the first cash distributed after the payment of outside creditors would be
distributed to
 Sergio, in the amount of P60,000

 Tito, in the amount of P30,000
 Roger, in the amount of P48,000
 Tito, in the amount of P57,000
Before the realization of non-cash assets, the partnership has a zero balance in its cash account
and a P200,000 balance in its liabilities. If on final settlement of partners’ claims Jack received
P261,000, how much was the net proceeds from the sale of the non-cash assets?
 P290,000
 P0
 P360,000
 P560,000
P820,000 P820,000
Assuming Elorda is a limited partner, and the inventory is sold for P360,000, how much should
she receive upon liquidation of the partnership?
 P74,000
 P56,000
 P65,000
 P110,000
18. An entry is not required in the liquidation of a partnership to record the
 Distribution of cash to partners

 Payment of cash to creditors
 Sale of non-cash assets where proceeds are greater than the book value
 Allocation of a capital deficiency to partners with credit balances when the deficient
partner is solvent
The partnership has total liabilities of P200,000. If all partnership assets are realized for
P500,000, how much would Jack receive from the liquidation?
 P300,000
 P133,000
 P243,000
 P57,000
P480,000 P480,000
distributed to partners as assets are realized. Assuming that the first sale of other assets having
book value of P150,000 realized P45,000 and all available cash is distributed, the partners would
receive
 Roger, P9,000; Sergio, P0; Tito, P63,000

 Roger, P63,000; Sergio, P0; Tito P9,000
 Roger, P0; Sergio, P18,000; Tito, P54,000
21. ABC Partnership is liquidated and the non-cash assets are considered worthless. A and C are
general partners while B is a limited partner. The creditors will look to whose partner’s personal
assets for settlement of their claims?
 The personal assets of Partner B

 The personal assets are not available for partnership debts
 The personal assets of Partners A and C
 The personal assets of all partners
P820,000 P820,000
If the inventory is sold for P600,000, how much should Eclavo receive upon liquidation of the
partnership?
 P200,000
 P320,000
 P96,000
 P272,000
23. In lump-sum liquidation, a capital deficiency resulting from division of loss from realization
must be eliminated before making any payment to partners. Any resulting capital deficiency of
an insolvent partner is eliminated by charging the capital accounts of the remaining partners.
 Both statements are false

 Both statements are true
If all partnership assets are realized and all liabilities are settled, the partnership has remaining
cash of P120,000, how much would Beans receive from the liquidation?
 P99,000
 P189,000
 P120,000
 None
25. As of December 31, the books of AME Partnership showed capital balances of: A – P40,000;
M – P25,000; E – P5,000. The partners’ profit and loss ratio was 3:2:1, respectively. The partners
decided to dissolve and liquidate. They sold all the non-cash assets for P37,000 cash. After
settlement of all liabilities amounting to P12,000, they still have P28,000 cash left for
distribution.
Assuming that any partner’s capital debit balance is uncollectible, the share of A in the P28,000
cash for distribution would be
 P8,000
 P40,000
 P19,000
 P17,800
26. The statement of financial position of the partnership A, B and C shows: Cash, P22,400;
Other Assets, P212,000; Liabilities, P38,400; A, Capital (50%) P76,000; B, Capital (25%)
P64,000; and C, Capital (25%) P56,000.
The partners realized P56,000 from the first installment sale of non-cash assets with total
carrying amount of P120,000. How much did B receive from the partial liquidation?
 P24,000
 P16,000
 P0
 P25,000
27. The order of partnership liquidation process is
 Pay liabilities, sell assets, disburse cash to partners

 Sell assets, pay liabilities, disburse cash to partners
 Disburse cash to partners, pay liabilities, sell assets
 Sell assets, disburse cash to partners, pay liabilities
28. A, B and C decided to liquidate their partnership business. The financial position of the
partnership shows: A, Capital (30%) P210,000; B, Capital (20%) P150,000; C, Capital (50%)
P210,000. Upon liquidation, all of the partnership’s assets are sold and sufficient cash is realized
to pay all liabilities except one for P30,000. All partners are solvent except C.
By what amount would the capital of A change?
 P0
 P24,000 increase
 P234,000 decrease
 P180,000 decrease
29. As of December 31, the books of AME Partnership showed capital balances of: A – P40,000;
M – P25,000; E – P5,000. The partners’ profit and loss ratio was 3:2:1, respectively. The partners
decided to dissolve and liquidate. They sold all the non-cash assets for P37,000 cash. After
settlement of all liabilities amounting to P12,000, they still have P28,000 cash left for
distribution.
The loss on the realization of the non-cash assets was
 P44,000
 P40,000
 P45,000
 P42,000
30. Partner Morgan is personally insolvent, owing P600,000. Personal assets will only bring
P200,000 when liquidated. At the same time, Morgan has a credit balance in the partnership of
P120,000. The capital amounts of the other partners total a credit balance of P250,000. Under the
doctrine of marshalling of assets, how much the personal creditors of Morgan can collect?
 P320,000
 P570,000
 P120,000
 P200,000

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Quiz Accounting

 Answer not determinable

 Both statements are true.

Assets Liabilities and Capital

Cash P120,000 Accounts Payable P93,000

Other Assets 360,000 Loan from Sergio 30,000

Roger, Capital 108,000

Sergio, Capital 120,000

_____ Tito, Capital 129,000

 Roger, P360,000; Sergio, P240,000; Tito, P645,000

How much is the additional contribution required of B?

Cash P100,000 Accounts Payable P300,000

Inventory 720,000 Eclavo, Capital 320,000

Eclara, Capital 90,000

_____ Elorda, Capital 110,000

 Partnership drawings, partnership liabilities, partnership loans, partnership capital

Assets Liabilities and Capital

Cash P120,000 Accounts Payable P93,000

Other Assets 360,000 Loan from Sergio 30,000

Roger, Capital 108,000

Sergio, Capital 120,000

_____ Tito, Capital 129,000

Assets Liabilities and Capital

Cash P120,000 Accounts Payable P93,000

Other Assets 360,000 Loan from Sergio 30,000

Roger, Capital 108,000

Sergio, Capital 120,000

_____ Tito, Capital 129,000

 Sergio, in the amount of P60,000

Cash P100,000 Accounts Payable P300,000

Inventory 720,000 Eclavo, Capital 320,000

Eclara, Capital 90,000

_____ Elorda, Capital 110,000

18. An entry is not required in the liquidation of a partnership to record the

 Distribution of cash to partners

Assets Liabilities and Capital

Cash P120,000 Accounts Payable P93,000

Other Assets 360,000 Loan from Sergio 30,000

Roger, Capital 108,000

Sergio, Capital 120,000

_____ Tito, Capital 129,000

 Roger, P9,000; Sergio, P0; Tito, P63,000

 The personal assets of Partner B

Cash P100,000 Accounts Payable P300,000

Inventory 720,000 Eclavo, Capital 320,000

Eclara, Capital 90,000

_____ Elorda, Capital 110,000

 Both statements are false

27. The order of partnership liquidation process is

 Pay liabilities, sell assets, disburse cash to partners

The loss on the realization of the non-cash assets was

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