LYCEUM OF THE PHILIPPINES ACCOUNTANCY asa cpa ADVANCED ACCOUNTING The partnershi cach” 7 NAWAAKOYPAGPALAIN i uideting andthe ledger shows the following: ‘ P 80,000 7 fA Inventories w 100,000 n . Accounts payabie 60,000 woot NAWA, capt (60%) 40,000 vp 68 ‘AKO, capital (25%) éoua ® PAPALAIN, capital (25%) 35,000 r t 1. Hall cash available is cistributed immediately : Each partner gets P26,667 _c. NAWA P10,000, AKO and PAPALAIN, P5.000 each z Each partner gets PS,667 _d. AKO gets P15,000 and PAPALAIN gets P5,000 he balance sheet for EASY, TOO, and PASS Partnership, who share profits and losses in the ratio of 50%, 25%, and 25%, respectively, shows the following balances just before liquidation. bea P 24,000 Chet eet « ~ 119,000 Liabilties ey - 40,000 EASY, capital 44000. TOO; caphal 31,000 26,000 PASS, capital ‘On the first month of liquidation, certain assets are sold for 64,000. Liquidation expenses of P2,000 are paid, ‘and additional liquidation expenses are anticipated. Liabilities are paid amounting to P10,800 and sufficient cash is retained to insure the payment to creditors before making payments to pariners. On the first payment to partners, EASY receives P12,500. 2. Determine the amount of cash withheld fr anticipated liquidation expenses. a. P35,200 b. P3200 .P29,200 4. P 6,000 ‘The Statement of Realization and Liquidation for NOMONEY Corporation. The totals are as follows: Assets to be realized P60,000 - Liabilities assumed 50,000, Assets acquired 40,000 Liabilities not liquidated 65,000 Assets realized 55,000 Supplementary credits 140,000 Liabitties to be liquidated 80,000 - 4.» Retained eamings decreased by P'12,000. The ending balances of ordinary shares and retained eamings are 100,000 and (75,000), respectively. 3. The beginning balance of cash is a. P57.000 b.P75,000 —_«. P65,000 1. P56,000 On dune 1, § and T pooled their assets to form a partnership, with the firm to take over their business ‘assets and assume the lblities. Partners’ capitals are to be based on net assets transferred after the following adjustments: «Tyler's inventory Is to be increased by P3,000. ‘An allowance for doubtful accounts of P1,000 and P1,500 are to be set up on the books of $ and T, respectively. ‘nects, payable of P4,000 Is to be recognized on the books of S trial balances on June 1, before adjustments follow: The india re S00 toes $000 34300 LiabilitiesLYCEUM OF THE PHILIPPINES asa epa \ a ACCOUNTANCY ae Gata) ____5 . an ‘pital bolance of T after adjustments? so 1,500 00 : : © Pa0,000 4. 97,0 ies On March 1, 2016, Candace and Noreen formed «partnership wth each cones we FHM *S om S000 sa;000 = 0 s Butane ment so.o00 150000 Furnitures & Fixtures “ 450, 0 — 20,000 hip. The ‘Te bulging is subject to a mortgage loan ofP180,000, whieh sto be assumed BY the partnership. Tt ‘esPectively. Assuming thatthe partners agreed to bring thelr respective capital in proportion to thelr . { ratios, and using Noreen capital as the base. 5 Compute (1) the cata account balance of Noreen on March 1, 2014 and (2) addtional cash to Be invested by Candace. (1) P560,000; (2) P430,000 (4) P614,000; (2) P430,000 b. (1) P560,000; (2) P110,000 d. (1) P614,000; (2) P110,000 Debbie, 2 senior partner Ina law frm, has a 30% participation inthe fim’s profit ané losses. During 2014, Debbie withdrew P130,000 against her capital but contributed property with a fair value of asim. Debbie's capital increased by 15,000 during 2014. ei : 6. The net income of the partnership for 2014 is 2. 150,000 400,000 .P350,000 4. 550,000 Selected accounts of Ami, Susi and Tessi prior to liquidation of their partnership show: Loans receivable from Ami P 300,000 debit Loans payable to Susi £600,000 credit Ami, Capital 900,000 debit Susi, Capital 1,800,000 credit Tessi, Capital 1,600,000 credit The partners share profits and losses at 20:40:40 respectively 7. Inthe payment priority program, the beginning capital balances are: aAmi: PO ‘Susi: P2,400,000 Tesi: P1,500,000 [Link]: ( 450,000) Susi: 450,000 Tess: 375,000 Ami: ( 600,000) Susi: 600,000 Tessi: 375,000 .Ami: (1,200,000) Susi: 2,400,000 Tess: 1,500,000 ‘The following balance sheet for the partnership of A, B, and C was taken from the books on December 31, 2014 Assets Liabilties and Capital Cash ee a ce P 100,000 360,000 A, Capita 74,000 ~—s 8, Capital (40%) 430,000 C, Capital (20%) 96,000 Total Assets 400.000 Total Liab.& Cap. 400,000 If the firm is dissolved and liquidates by instalment, the first sale of the other assets having book value of 180,000 realized P80,000 and all cash available are distributed, the amount to be received by A, B, and 8 c B c 18,000 40,000 ’ 80,000 20,000 1h PO PO . Po 20,000 evo lobie 9. If the frm is dissolved and lquidates on the basis of a payment priority program and A receives a total of 'P3,000 in full settlement of his interest, then C would have received a total of a.P56,000 b.P-60,500 ©. P 31,000 4. P 59,000‘THE PHILIPPINES INTANCY asa cpa into Tt their respective equiieg nN of LEAH, TAHLA and CASS. “The later agreed to sel to Sabrina one-fourth of LEAH, TAHLA and ca 24 proft shares. Sabrina paid a total price of 1,000,000. Before DANA's admission, ‘SS have capital balances of P2,000,000, 1,000,000 and P500,000 and they share Profits at the ratio of 6: °F 6:31, Partnership assets are fay stated and! implied goodwal is not to be recognized oto DANA ais Te pew capa ct he panei 500,000 bp « Ps00no00 xP, O80. d. P 4,500,000 Rea and profits. S by a cash investment of P1,200,000 fora one-third interest in both the fir's assets 47 Pro, Speman wl be ceded nul lor aout ivese, Te fis setae ated 'snew capta should be ‘Bicone b.P3,600,000 6. P2,400,000 4. P4,200,000 . Green and Field share partnership profits inthe rao of 23:5. On September 30, Field opted to retire Pesos ip. The capital balances on this date folow: Ever- 26,000; Green PA0,000; Field: 12. How much isto be credited to Green assuming Field is paid P32,000 In ful and final settlement of his Partnership interest? : a P1800 bP 857 cP 600d. P1,200 ‘ ‘The balance sheet ofthe partnership L, M, and N at Apri 30, 2014 folows: The partners share profits, and losses in the ratio of 2:2:6 respectively Assets Uabilties & Capital “ é Other assets 100,000 L, Loan P 9,000 ie 3 L, Capital 15,000 ti 'M, Capital 31,000 t " _N, Capital 45,000 90.000 Lis retiring from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of 130,000. M and N agree that the partnership will pay | P37,000 cash for his partnership interest, exclusive of his loan which is to be paid in full separately. 13. no goodwill is to be recorded, what is the balance of N's capital account after L's retirement? a. P51,000 b.P50,000 —¢. P3400 . P 63,000 ‘The capital accounts of Van, Hou, and Ten are presented below with their respactive profit and loss ratios. \Van Capital (50.00%) 139,000 Hou, capital (33.33%) 209,000 Ten, capital (16.67%) 96,000 00.00% 444,000 Choko was admitted tothe partnership when he purchased directly for P132,000 a proportionate interest from \Van and Hou inthe net assets and profs of the partnership. As a resuit, Choko acquired a one-fifth interest in the net assets and profits ofthe firm. No revaluation of assets is to be recorded. 44. What is the combined gain realized by Van and Hou upon the sale of a portion of thei interests in the partnership to Choko? a. PO b.P43,200 ©. P2400 d.P82,000 Platt Company has been forced into bankruptcy and liquidity. Unsecured claims will be paid at the rate of 0.50 on the peso. Maga Company holds a noninterest-bearing not receivable from Platt in the amount of 50,000, collateralized by machinery with a liquidation value of P10,000. 415. The total amount to be realized by Maga on this note receivable is:LYCEUM OF THE PHILIPPINES — Assets: Assets pledged with fly secured cre — tors, 185,000 Assos plese wih partly secures estore "ano £000 . Uabilies: 210,000 160,000 a Liabilies with pronty af set Fully secured creditors 35,000 se. 430,000 ji Partially secured creditors Unsecured creditors 100,000 Seuiates. How much ch wi be aaa pay unseciredno-ponyc? thence .P 160,000 P 190,000 a. P 125,000 ry fled a voluntary bankrupt petition on July 16, 2008 and tne statement of afar retects the following amounts . Book Est. Current ay Value ‘Value ‘Assets pledged with fully secured creditors P 160,000 190,000 ‘ Assets pledged with partially secured creditors 90,000 60,000 Free assets 200,000 140,000 Liabilities Liabilities with priority 20,000 Fully secured creditors 130,000 Partially secured creditors 100,000 - Unsecured creditors 260,000 ‘Assume that the assets are converted into cash at the estimated current values. 17. What amount of cash should the partially secured creditors receive? a. P 60,000 b. P 84,000 . P. 90,000 4. P 100,000 “The following were taken from the statement of affairs of Nodebt Company. ‘Assets pledged with fully secured creditors 71,000 ‘assets pledged with partially secured creditors 42/500 Free assets 1,000 Preferred creditors 3,000 Fully secured creditors 69,000 Partially secured creditors 20,000 Unsecured creditors without priority 418,000 48. The estimated deficiency to unsecured crecitors is ‘a. P5000 © P1200 « PA6,600 114,600 ership has a 30% share inthe partnership profit and loss. His capital account M. Jordan, a partner in the partn 2048, in 2018, he withdrew P130,000 against his capital and invested had a net decrease of P60,000 in valued at P25,000 in the partnership. 49, The net income of the partnership in 2018 is ‘a, 150,000 b, P233,333 1c. P350,000 . P550,000 ‘on May 1, 2018, the business assets of John and Paul appear below: Paul 22,384 CashBuilding ‘umitures Other asses BATES agreed x 588,650 to form a partnership conti respective assets ond equities subject to the Accounts b, liseclorenot fe an f P20,000 in John’s books and P35,000 in Paul's are uncollectible. e OmntOtes of PS.500 and 8.700 are worthessin Joes and Pau respectve books. 20. The nti ofF2.000 & P3.600in Joe's & Paurs respective books ae tobe wren oft 2 pital accounts of the partners after the adjustments will be: yohn's 614.476 b. John’s 615,942 Paul's 683,052 ©. John’ 640,000 =e Paul's 712,345 21. How much assets does the Partnership have: a. 72,337,918 6 P2,265,118 b P2.237/918 1. P2,365,218 JOJO, a senior partner in an engineering firm, has profit share of 30%. During 2018, JOJO withdrew P'130,000 against his capital but invested property with a fair market value of P25,000. 22. If JOJO's ending capital is P60,000 lesser than his beginning capita, the profit of the partnership for the year is a. P150,000 —b. P175,000 —c.P210,000 <4. P240,000 LUIS, KRIZMA and CALL-INNS share partnership profit in the ratio of 2:3:5. On September 30, CALL-INNS opted to retire from the partnership. The capital balances are: LUIS, P26,000; KRIZMA, P40,000; and CALL- INNS, P35,000. 23. How much is to be debited to LUIS, assuming CALL-INNS is paid P39,000 in full settlement of his partnership interest? a P2,400 P3000 © <. PA.900- A. P1,600 , ‘AB Corporation filed a voluntary bankruptcy petition on August 1, 2009, and the statement of affairs reflects the following information Book value Fair MV Assets pledged for fully secured liabilities 100,000 P85,000 ‘Assets pledged for partially secured liabilities 185,000 Free assets ‘90,000 Unsecured liabilities with priority 10,000 ate Fully secured labilides 70,000 7 Partially secured liabilities 65,000 Unsecured liabilities without priority - 0,000 24. The amount that will be paid to creditors with prion is a. P10,000 b.P 7,000. P 8,000 4. P 7,500 25. The amount to be paid to fully secured creditors is a. P85,000 b.P70,000 — ¢. P75,000 4. P49,000 26. The amount to be paid to partially secured creditors is a. P65,000 b. P50,000 —_¢. P60,500 . P55,000 27. The amount to be paid to unsecured crecitors is a. 90,000 b.P63,000 «. P49,500 4. None 28. The expected recovery rate is a. 100% b. 70% ©. 55% 4. 50%