DLSU-D College/GS

B-ACTG328 BSA33 ACCOUNTING FOR SPECIAL TRANSA…

Submissions

Previous

Partnership Accounting
Submissions 1 Instructions

Submissions
Here are your latest answers:

Question 1
Tim and Michelle have decided to form a partnership with a 60/40 partnership
interest ratio. Tim contributes P7500 cash and merchandise inventory with a market
value of P1500. While journalizing this transaction ________.

Response: Tim, Capital will be credited for P9000

Correct answer: Tim, Capital will be credited for P9000

Score: 1 out of 1

Question 2
At December 31, Rod and Sol are partners with capital balances of ₱40,000 and
₱20,000, and they share profits and losses in the ratio of 2:1, respectively. On this date
Pete invests ₱17,000 in cash for a one-fifth interest in the capital and profit of the new
partnership. Assuming that assets are not revalued, how much should be credited to
Pete’s capital account on December 31?

Response: ₱15,400

Correct answer: ₱15,400

Score: 1 out of 1

Question 3
Matthew, Paulo, and Claude share partnership profits in the ratio 2:3:5. On
September 30, Claude opted to retire from the partnership. Prior to Claude's retirement,
the capital balances of the three partners are P25,000, P40,000 and P35,000,
respectively.

How much is Paulo's capital after Claude's retirement if Claude is paid P30,000 in full
settlement of his partnership interest?

Response: P43,000
Correct answer: P43,000

Score: 1 out of 1

Question 4
Egay and Egoe who share profits and losses equally have capital balances of
P200,000 and P240,000, respectively. They admit Engyl for a 1/3 interest in partnership
capital and profits for an investment of P260,000.

By how much were the net assets undervalued? ( Engyl is credited for his capital
contribution.)

Response: P80,000

Correct answer: P80,000

Score: 1 out of 1

Question 5
Paul, Melvin and Elrick are partners sharing profits and losses in the ratio of 2:2:1 .
On July 31,2018 their capital balances are as follows: Paul - P700,000; Melvin -
P500,000; Elrick - P400,000. The partners agree to admit Laurence on the following
conditions:
a. Laurence is to pay Paul P400,000 for 1/2 of Paul's interest;
b. Laurence is also to invest P400,000 in the partnership.
c. The total interest of Laurence is 25% of the total partnership capital, which is also his
share in the new partnership profit and loss sharing ratio. The old partners are sharing
in their old ratio.

How much is Paul's capital after the admission of Laurence?

Response: P450,000
Correct answer: P450,000

Score: 1 out of 1

Question 6
The Smith and Jones partnership agreement stipulates that profits and losses will
be shared equally after salary allowances of P120,000 for Smith and P60,000 for Jones.
At the beginning of the year, Smith's Capital account had a balance of P240,000, while
Jones' Capital account had a balance of P210,000. Net income for the year was
P150,000. The balance of Jones' Capital account at the end of the year after closing is

Response: P255,000

Correct answer: P255,000

Score: 1 out of 1

Question 7
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 P 120,000 Accounts Payable P 93,000
Other Assets 360,000 Loan from Sergio 30,000
Roger, Capital 108,000
Sergio, Capital 120,000
________ Tito, Capital 129,000
P 480,000 P480,000

The partners desire to prepare an installment distribution schedule showing how cash
would be distributed to partners as assets are realized. If Roger has received P30,000,
how much would Sergio had received?
Response: P20,000

Correct answer: P20,000

Score: 1 out of 1

Question 8
Steve owns 64% and Mark owns 36% of a partnership business. They purchase
equipment with a suggested value of P9600. The current market value of the equipment
at the time of purchase was P9100. At the time of the balance sheet preparation,
depreciation of P160 was recorded. Based on the information provided, which of the
following is TRUE of the partnership?
Response: The Equipment account will be debited at P9100 on the date of purchase.

Correct answer: The Equipment account will be debited at P9100 on the date of
purchase.

Score: 1 out of 1

Question 9
Charlize and Megan are partners with capitals of P80,000 and P40,000,
respectively.They share profits in the ratio of 3:1. The partners agree to admit Caleb as a
member of the firm.

If no bonus is recognized and Caleb invests P30,000 for a 20% interest in the firm, what
is Megan's capital after the admission of Caleb?
Response: P40,000

Correct answer: P40,000

Score: 1 out of 1

Question 10
. Blau and Rubi are partners who share profits and losses in the ratio of 6:4,
respectively. On May 1, 2018, their respective capital accounts were as follows:
Blau 60,000
Rubi 50,000
On that date Lind was admitted as a partner with one-third interest in capital, and
profits for an investment of P40, 000. The new partnership began with a total capital of
P150, 000. Immediately after Lind’s admission, Blau’s capital should be
Response: P54,000

Correct answer: P54,000

Score: 1 out of 1

Question 11

Rica is a sole proprietor who invested her grocery when she invited Belle to form a new
partnership business.  The following are the assets and liabilities of the grocery:

Cash P50,000
Merchandise 30,000  (book value)
(market
20,000 
value)
Fixed assets (P100,000 less Accumulated Depreciation 90,000 (book value)
P10,000)
70% of (market
cost value)
Accounts Payable 20,000
Accrued Expenses 7,000

Rica's capital account should be credited for

Response: P113,000

Correct answer: P113,000

Score: 1 out of 1

Question 12
Partnership JB has two partners: Jim and Bill. Jim owns 60% of the partnership and
Bill owns 40%. In which of the following transactions will the partnership be held
responsible for an individual partners' actions?

Response: Bill signs a contract to buy furniture for official use in the partnership.

Correct answer: Bill signs a contract to buy furniture for official use in the partnership.

Score: 1 out of 1

Question 13

Dino, Doods, and Dong have the following accounts and their normal balances on
January 31, 2021, the date the partners agreed to liquidate their 3D Partnership:

Cash P20,000 Accounts Payable P10,000

Accounts Receivable 25,000 Notes Payable 27,000

Allowance for Bad Debts 5,000 Loan due to Dino 5,000

Merchandise Inventory 60,000 Loan due to Doods 7,000

Furniture & Equipment 50,000 Dino, Capital 20,000

Accumulated 5,000 Doods, Capital 40,000

Depreciation

Dong, capital 36,000

The partners divide profits and losses 4:1:5, respectively. Sales proceeds follow:

Accounts Receivable     P10,000

Merchandise Inventory    30,000

Furniture & Equipment     20,000

Assuming that Dino is a limited partner, the cash paid to Dong is?

Response: 0

Correct answer: 0

Score: 1 out of 1

Question 14
A loan due from a partner is classified in the statement of financial position as a/an
Response: current assets

Correct answer: current assets

Score: 1 out of 1

Question 15

Iyah, Ayah and Mia operate a business as a partnership and share net income and net
loss in a 3:3:4 ratio, respectively. The personal assets and liabilities of the partners,
gathered from their personal records show:

Partner Assets Liabilities

Iyah (General Partner) P470,000 P450,000

Ayah (General Partner) 200,000 280,000

Mia (Limited Partner) 305,000 300,000

The statement of financial position is as shown below. Assets are sold for P175,000.
Liabilities are paid as soon as cash is available. Creditors collect from solvent partners.
whenever necessary. How much is the additional investment made by Iyah?

Cash 10,000 Accounts Payable P200,000

Non-Cash 375,000 Loan, Mia 5,000

Iyah, Capital 50,000

Ayah, Capital 70,000

Mia, Capital 60,000

Response: P20,000
Correct answer: P20,000

Score: 1 out of 1

Question 16
1. An advantage of the partnership form of business is that each partner’s potential
loss is limited to that partner’s investment in the partnership.
2. Ownership is easily transferred in a partnership.

Response: Both statements are false.

Correct answer: Both statements are false.

Score: 1 out of 1

Question 17

Andrea invested the following in the partnership:

Cash P10,000
Accounts Receivable 50,000
Allowance for Bad Debts 5,000
Merchandise Inventory 120,000
Furniture & Fixtures 75,000
Accumulated Depreciation 7,500

If the current fair value of the furniture and fixtures is P60,000 and that of the
merchandise inventory is 110,000, Andrea should be credited for
Response: P225,000

Correct answer: P225,000

Score: 1 out of 1

Question 18
If a partner's capital account is credited with the amount that he or she contributed
in cash, which of the following financial statements will be affected?

Response: the statement of partners' equity

Correct answer: the statement of partners' equity

Score: 1 out of 1

Question 19
A firm has two partners: Jim and Bill. Jim owns 60% of the partnership and Bill owns
40%. In which of the following transactions will the partnership be held responsible for
an individual partners' actions?

Response: Bill signs a contract to buy furniture for official use in the partnership.

Correct answer: Bill signs a contract to buy furniture for official use in the partnership.

Score: 1 out of 1

Question 20
Chris is a partner in a local partnership. The profit and loss sharing agreement
includes an interest allocation of 7 percent on the invested capital. The capital account
of Chris reveals that he had a beginning capital account balance of P50,000. He
withdrew P10,000 on May 1 and invested P25,000 on October 31.

1. Rounded to the nearest peso, what is Chris’ weighted average capital balance? _____
(Do not use comma, peso sign, or decimal.)

Response: 47500

Correct answer: 47500

Score: 1 out of 1

Question 21

Jaime, Madrid,  and Soriano are partners sharing profits on a 5:3:2 ratio. On January 1,
2018, Matias was admitted into the partnership with a 20% share in the profits. The old
partners continue to participate in profits proportionate to their original ratios. For the
year 2018, the partnership books showed a net profit of P250,000. It was disclosed
however, that the errors shown below were made:

Errors 2017 2018

Accrued expenses not recorded at year-end 12,000
Inventory overstated 31,000
Purchases not recorded, for which goods have been received and 20,000
inventoried
Income received in advance not adjusted 15,000
Unused supplies not take up at year-end 9,000

1. Assuming that income tax rate is 35%, the share of Jaime in the corrected net profit
is _____. (please do not use peso sign, comma , and decimal)
Response: 96100

Correct answer: 96100

Score: 1 out of 1

Question 22
The partnership agreement of Rossi and Olson provides for salary allowances of
P45,000 to Rossi and P35,000 to Olson, with the remaining income or loss to be divided
equally. During the year, Rossi and Olson each withdraw cash equal to 80% of their
salary allowances. If partnership net income is P100,000, Rossi's equity in the
partnership would

Response: increase more than Olson's

Correct answer: increase more than Olson's

Score: 1 out of 1

Question 23

The liabilities and capital balances of the partners before the sale of the assets and
payment of liabilities including personal assets and liabilities of the partners were:

Partnership Personal Assets Personal Liabilities

Cash P10,000
Liabilities 70,000
Kath 65,000 P1,200,000 P1,500,000
Pau 20,000 2,500,000 2,490,000
Jas 15,000 3,000,000 3,200,000

After the assets were sold the capital balances of the partners where as follows: Kath,
P48,000; Pau, P12,000; and Jas, (P10,000).

How much is the non-cash assets? 

Response: P160,000

Correct answer: P160,000

Score: 1 out of 1

Question 24
Jeric, Ken, and Lemuel are partners sharing profits in the ration5:3:2, respectively. As
of December 31, 2013, their capital balances were P95,000 for Julian, P80,000 for Ken,
P60,000 for Lemuel.

On January 1,2019, the partners admitted Mark as a new partner and according to their
agreement, Mark will contribute P80,000 in cash to the partnership and also pay
P10,000 for 15% of Ken’s share. Mark will be given a 20% share in profits, while the
original partners’ share will be proportionately the same as before. After the admission
of Mark, the total capital will be P330,000 and Mark’s capital will be P70,000.

The bonus in the admission of Mark would be

Response: P22,000

Correct answer: P22,000

Score: 1 out of 1

Question 25
At December 31, RR and SH are partners with capital balances of P40,000 and
P20,000, and they share profits and losses in the ratio of 2:1, respectively. On this date,
PP invests P17,000 in cash for a one-fifth interest in the capital and profit of the new
partnership.

1. Assuming that the bonus method is used, how much should be credited to PP’s
capital account on December 31? _____ (Do not use comma, decimal, or peso sign.)

Response: 15400

Correct answer: 15400

Score: 1 out of 1

Question 26
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?

Response: The personal assets of Partners A and C

Correct answer: The personal assets of Partners A and C

Score: 1 out of 1

Question 27
Pascual invested P400,000 for a 10% interest in a partnership that has a total capital
of P3,000,000 after admitting Pascual. Which of the following is true?

Response: The original partners received a bonus of P100,000.

Correct answer: The original partners received a bonus of P100,000.

Score: 1 out of 1

Question 28
Bob, Claire, and Jack are partners who share profits and losses 30 percent, 25
percent, and 45 percent, respectively. Bob informed Claire and Jack that he is
withdrawing from the partnership. The partners’ capital accounts at the date of Bob’s
withdrawal are P150,000, P135,000, and P225,000, respectively. The partnership
agreement states that the goodwill, if any, of the withdrawing partner will be recognized
for all partners immediately prior to the withdrawal of any partner. In this instance, the
partners determine that the goodwill associated with Bob is P22,500.

1. Assuming that Bob’s equity is purchased by a new partner (Deborah) approved by

Claire and Jack, what is the amount of Deborah’s initial capital account? _____ (Do not
use comma, decimal, or peso sign.)

Response: 172500

Correct answer: 172500

Score: 1 out of 1

Question 29
Jeric, Ken, and Lemuel are partners sharing profits in the ration5:3:2, respectively. As
of December 31, 2013, their capital balances were P95,000 for Julian, P80,000 for Ken,
P60,000 for Lemuel.

On January 1,2019, the partners admitted Mark as a new partner and according to their
agreement, Mark will contribute P80,000 in cash to the partnership and also pay
P10,000 for 15% of Ken’s share. Mark will be given a 20% share in profits, while the
original partners’ share will be proportionately the same as before. After the admission
of Mark, the total capital will be P330,000 and Mark’s capital will be P70,000.

The amount of asset revaluation is

Response: P15,000

Correct answer: P15,000

Score: 1 out of 1

Question 30
On May 1, 20x4, CC and MM formed a partnership and agreed to share profits and
losses in the ratio of 3:7, respectively. CC contributed a parcel of land that cost her
P10,000. MM contributed P40,000 cash. The land was sold for P18,000 immediately
after formation of the partnership.

1. What amount should be recorded in CC’s capital account on formation of the new
partnership? _____ (Do not use comma, decimal, or peso sign).

Response: 18000

Correct answer: 18000

Score: 1 out of 1

Question 31
Philip, Ray, and Sarah are forming a partnership. Philip contributes cash of
P100,000; Ray contributes inventory with a value of P100,000; and Sarah contributes a
building with a market value of P300,000. The partnership also assumed the P210,000
mortgage on the building.

1. What is the amount of capital assigned to Sarah? _____ (Do not use comma, decimal,
or peso sign).

Response: 90000

Correct answer: 90000

Score: 1 out of 1

Question 32
A partnership is a ________.

Response: business with two or more owners that is not organized as a corporation

Correct answer: business with two or more owners that is not organized as a
corporation

Score: 1 out of 1

Question 33
When Jill retired from the partnership of Jill, Bill, and Hill, the final settlement of her
interest exceeded her capital balance. Under the bonus method, the excess

Response: Reduced the capital balance of Bill and Hill

Correct answer: Reduced the capital balance of Bill and Hill

Score: 1 out of 1

Question 34
Chris and David are forming a partnership with contributions of P75,000 and
P125,000, respectively. In addition, they agree that they will recognize P25,000 goodwill
with regard to David’s contacts in the area.

1. What is the total amount of capital that will exist for the partnership immediately
after it is formed? _____ (Do not use comma, decimal, or peso sign).

Response: 225000

Correct answer: 225000

Score: 1 out of 1

Question 35
Mickey, Donald and Minnie are partners sharing profit and loss in the ration of 2:1:1,
respectively. Their capital balances are P400,000 for Mickey, P200,000 for Donald and
P100,000 for Minnie. Claims of suppliers amounted to 500,000 including the loan
extended by Minnie, P50,000. The cash balance amounted to P300,000 and it increased
to P1,050,000 as a result of the sale of the non-cash assets.

How much cash was received by Mickey in the final settlement?

Response: 325,000

Correct answer: 325,000

Score: 1 out of 1

Question 36
Statement 1: Solvent partners are partners with sufficient remaining personal assets
after deducting or liquidating the personal liabilities.
Statement 2: Right of offset is a legal right to apply a part or all of the amount owing to
a partner against his or her capital deficiency.

Response: Both statements are true

Correct answer: Both statements are true

Score: 1 out of 1

Question 37
Partner Fe is investing in a partnership with Partner Ann. Fe contributes as part of
her initial investment, Accounts Receivable of P80,000; an Allowance for Doubtful
Accounts of P12,000. Accounts of P8,000 should be written off. The entry that the
partnership makes to record Fe's initial contribution includes a

Response: credit to Fe, Capital for P68,000.

Correct answer: credit to Fe, Capital for P68,000.

Score: 1 out of 1

Question 38
Harriet, Bob, and Tim are partners. Income for the current year is P500,000. The
profit and loss agreement states that salaries are P35,000, P50,000, and P40,000,
respectively. In addition, the residual profit and loss ratios are 40%, 30%, and 30%,
respectively.

1. How much of the profit is allocated to Harriet? _____ (Do not use comma, peso sign,
or decimal.)

Response: 185000

Correct answer: 185000

Score: 1 out of 1

Question 39
LOV Partnership decided to admit E who purchased a 20% interest from L, whose
capital balance was P400,000. E paid her P100,000. The journal entry to record the
admission of E will include a

Response: . Debit to L, Capital

Correct answer: . Debit to L, Capital

Score: 1 out of 1

Question 40
Partner B is investing in a partnership with Partner A. B contributes as part of his
initial investment, Accounts Receivable of P60,000; an Allowance for Doubtful Accounts
of P9,000; and P6,000 cash. The entry that the partnership makes to record B's initial
contribution includes a

Response: credit to B, Capital for P57,000.

Correct answer: credit to B, Capital for P57,000.

Score: 1 out of 1

Question 41
Mickey, Donald and Minnie are partners sharing profit and loss in the ration of 2:1:1,
respectively. Their capital balances are P400,000 for Mickey, P200,000 for Donald and
P100,000 for Minnie. Claims of suppliers amounted to 500,000 including the loan
extended by Minnie, P50,000. The cash balance amounted to P300,000 and it increased
to P1,050,000 as a result of the sale of the non-cash assets.

How much was the non-cash assets of the partnership?

Response: P900,000

Correct answer: P900,000

Score: 1 out of 1

Question 42
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 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?

Response: None

Correct answer: None

Score: 1 out of 1

Question 43
1. The essence of partnership is that each partner must share in the profits or
losses of the venture.
2. As long as the action is within the scope of the partnership, any partner can bind the
partnership.

Response: Both statements are true.

Correct answer: Both statements are true.

Score: 1 out of 1

Question 44
The net income of the Rice and Wynn partnership is P120,000. The partnership
agreement specifies that Rice and Wynn have a salary allowance of P32,000 and
P48,000, respectively. The partnership agreement also specifies an interest allowance
of 10% on capital balances at the beginning of the year. Each partner had a beginning
capital balance of P80,000. Any remaining net income or net loss is shared equally.
What is Rice's share of the P120,000 net income?

Response: P52,000
Correct answer: P52,000

Score: 1 out of 1

Question 45
Carlin and Maley have a partnership agreement which includes the following
provisions regarding sharing net income or net loss:
• A salary allowance of P120,000 to Carlin and P100,000 to Maley.
• An interest allowance of 10% on capital balances at the beginning of the year.
• A bonus of 20% Carlin
• The remainder to be divided 40% to Carlin and 60% to Maley.

The capital balance on January 1, 2018, for Carlin and Maley was P90,000 and
P120,000, respectively. During 2018, the Carlin and Maley Partnership had sales of
P2,000,000, cost of goods sold of P1,100,000, and operating expenses of P400,000.
Income Tax rate is 30%.
If bonus is computed based on net income before bonus, salary allowances, and
interest on capital, the total share of C in the partnership is _____________

Response: P214,600

Correct answer: P214,600

Score: 1 out of 1

Question 46
Donald, Anne and Todd have the following capital balances; P40,000, P50,000 and
P30,000 respectively. The partners share profits and losses 20%, 40% and 40%
respectively.
Anne retires and is paid P80,000 based on the terms of the original partnership
agreement.

1. If the goodwill (revaluation of asset) method is used, what is the capital of Donald
after Anne's retirement? _____ (Do not use comma, decimal, or peso sign.)

Response: 55000

Correct answer: 55000

Score: 1 out of 1

Question 47
Matthew, Paulo, and Claude share partnership profits in the ratio 2:3:5. On
September 30, Claude opted to retire from the partnership. Prior to Claude's retirement,
the capital balances of the three partners are P25,000, P40,000 and P35,000,
respectively.

How much is the capital of Matthew after Claude's retirement if Claude is paid P39,000
in full settlement of his partnership interest?

Response: P23,400

Correct answer: P23,400

Score: 1 out of 1

Question 48
1. One of the partners in a proposed partnership is a multi-millionaire. The
stipulation in the articles of partnership that this partner shall be excluded from sharing
in the profits of the partnership is void.
2. A partnership may be established for charity.

Response: Only statement 1 is true.

Correct answer: Only statement 1 is true.

Score: 1 out of 1

Question 49
Partnership A has an existing capital of P70, 000. Two partners currently own the
partnership and split profits of 50/50. A new partner is to be admitted and will
contribute net assets with a fair value of P90, 000. For no goodwill or bonus (depending
in whichever method is used) to be recognized, what is the interest in the partnership
granted the new partner?
Response: 56.25%

Correct answer: 56.25%

Score: 1 out of 1

Question 50

Dino, Doods, and Dong have the following accounts and their normal balances on
January 31, 2021, the date the partners agreed to liquidate their 3D Partnership:

Cash P20,000 Accounts Payable P10,000

Accounts Receivable 25,000 Notes Payable 27,000

Allowance for Bad Debts 5,000 Loan due to Dino 5,000

Merchandise Inventory 60,000 Loan due to Doods 7,000

Furniture & Equipment 50,000 Dino, Capital 20,000

Accumulated 5,000 Doods, Capital 40,000

Depreciation

Dong, capital 36,000

The partners divide profits and losses 4:1:5, respectively. Sales proceeds follow:
Accounts Receivable     P10,000

Merchandise Inventory    30,000

Furniture & Equipment     20,000

 
How much is the cash available for distribution to the partners?

Response: 43,000

Correct answer: 43,000

Score: 1 out of 1

Assessment
Type: Quiz
Max score: 50

Category: Class Participation

Start: Mar 13

Due: Mar 18

Timer: 80:00 (mm:ss)

Score
Your best submission is used

4.00

50/50 (100%)

Submission
Submitted: Mar 17, 10:29 pm
Time taken: 70 m, 20 s.
Attempts: 1
Max. attempts: 2
Allow late submissions:

Comments
Submission 1 @ 10:29 pm Mar 17, 2023

       

Post

Previous

Contact English (US)