DEPARTMENT OF ACCOUNTANCY
BAINTE1X – INTEGRATED ACCOUNTING FUNDAMENTALS
QUIZ NO. 6 – PARTNERSHIP DISSOLUTION AND LUMPSUM LIQUIDATION
NAME: (surname first)________________________________
YR./ SEC.: _________________
SCORE: __________________
DATE: ___________________
GENERAL DIRECTION: You are given two part examination, Part I – Theories (1pt each) and Part II Problem Solving –
(2pts each). Read and analyze the following questions and choose the best answer by shading the letter of your choice in
your answer sheet. STRICTLY NO ERASURES ARE ALLOWED.
PART I – THEORIES
1.
a.
b.
c.
d.
A person may become a partner in a partnership by all of the following methods except
Investing in the partnership with a bonus to the new partner
Making a loan to the partnership
Investing in the partnership with a bonus to the old partners
Purchasing a partner’s interest
2. If a new partner purchases his interest from an old partner, the only entry on the partnership books is a
credit to the purchaser’s capital account with a debit to the
a. Bonus account
b. Cash account
c. Capital account of selling the partner
d. Capital accounts of other partners
3.
a.
b.
c.
d.
Which of the following does not result in the dissolution of a partnership?
Marriage of a partner
Withdrawal of a partner
Addition of a new partner
Death of a partner
4. The accounting treatment for the sale of the interest of a retiring partner to an outsider or to the remaining
partners is the same as
a. Admission of a partner by purchase
b. Admission of a partner by investment
c. Sale of interest to the partnership
d. Both A and B
5. When the partnership purchases a retiring partner’s interest, the settlement to the retiring partner includes
the following except
a. cash
b. equipment
c. depreciation expense
d. notes payable
6.
a.
b.
c.
d.
The following should be considered in determining the interest of a retiring except
Payable to a co-partner
Receivable from the partnership
Share in asset adjustment
Share in profits
7.
a.
b.
c.
d.
When a partnership purchases the interest of a retiring partner at less than book value, there must be a
Bonus to remaining partners
Bonus to retiring partner
Bonus to remaining partners/negative asset revaluation or both
Bonus to retiring partners/positive asset revaluation or both
8. If the total contributed capital exceeds the agreed capital with the new partner’s investment is the same as
his capital credit, then the admission of the new partner involved a
a. Bonus to new partner
b. Bonus to old partners
c. Negative asset revaluation
d. Positive asset revaluation
9. If the agreed capital is equal to the total contributed capital with the capital credit and contribution of the old
and new partners being the same, there exists
a. Asset revaluation and bonus
b. Negative asset revaluation
c. No asset revaluation and no bonus
d. Positive asset revaluation
10. If the capital credit of the new partner is less than his contribution with no adjustment in asset values, then
the admission resulted in a (bonus to the old partners)
a. Asset revaluation and bonus
b. Negative asset revaluation
c. No asset revaluation and no bonus
d. Positive asset revaluation
11.
a.
b.
c.
d.
Which of the following results in dissolution of a partnership?
contribution of additional assets to the partnership by an existing partner
receipt of a draw by an existing partner
winding up of the partnership and the distribution of remaining assets to the partners
withdrawal of a partner from a partnership
12.
a.
b.
c.
d.
The admission of a new partner under the bonus method will result in a bonus to
the old partners only.
the new partner only.
either the new partner or the old partners, but not both.
none of the above.
13. If a bonus is traceable to the previous partners rather than an incoming partner, it is allocated among the
partners according to the
a. profit-sharing percentages of the previous partnership.
b. profit-sharing percentages of the new partnership.
c. capital percentages of the previous partners.
d. capital percentages of the new partnership.
14.
a.
b.
c.
The fair market value of a partnership can be implied by
adding the incoming partner's market value of consideration to the book value of the existing partnership.
the tax basis of the old partner's assets added to the incoming partner's consideration.
The incoming partner's market value of consideration divided by the incoming partner's percentage share in
profit and loss.
d. The incoming partner's market value of consideration divided by the incoming partner's percentage
ownership share in the new partnership.
15.
a.
b.
c.
d.
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 loans, partnership capital balances.
partnership liabilities, partnership loans, partnership drawings, partnership capital balances.
partnership liabilities, partnership capital balances, partnership loans.
16. Which of the following statements is correct regarding a partner's debit capital balances?
a. The partner should make contributions to reduce the debit balance to whatever extent possible.
b. If contributions are not possible, the other partners with credit capital balances will be allocated a portion of
the debit balance based on their proportionate profit-and-loss-sharing percentages.
c. Partners who absorb another's debit capital balance have a legal claim against the deficient partner.
d. All of these statements are correct.
17.
a.
b.
c.
d.
The doctrine of marshaling of assets
is applicable only if the partnership is insolvent.
allows partners to first contribute personal assets to unsatisfied partnership creditors.
is applicable if either the partnership is insolvent or individual partners are insolvent.
provides that when the Uniform Partnership Act is adopted, amounts owed to personal creditors and to the
partnership for debit capital balances are shared proportionately from the personal assets of the partners.
18. If a partnership has only non-cash assets, all liabilities have been properly disbursed, and no additional
liquidation expenses are expected, the maximum potential loss to the partnership in the liquidation process
is:
a. the fair market value of the non-cash assets
b. the book value of the non-cash assets
c. the estimated proceeds from the sale of the assets less the book value of the non-cash assets
d. none of the above
19.
a.
b.
c.
d.
A partner's maximum loss absorbable is calculated by
dividing the partner's capital balance by his or her profit-and-loss sharing percentage.
multiplying the partner's capital balance by his or her profit-and-loss sharing percentage.
multiplying distributable assets by the partner's profit-sharing percentage.
dividing the partner's capital balance by his or her percentage interest in capital.
20.
a.
b.
c.
d.
Under the doctrine of marshaling of assets, unsatisfied partnership creditors
must first proceed against the partner with the largest capital balance.
may attach to the assets of an individual partner before individual creditors have been satisfied.
may proceed against any personally solvent partner.
may proceed against any personally solvent partner but only to the extent of their capital balance in the
partnership.
PART II – PROBLEMS
21. Callie is admitted to the Adams & Beal Partnership under the bonus method. Callie contributes cash of
₱20,000 and non-cash assets with a market value of ₱30,000 and book value of ₱15,000 in exchange for a
20% ownership interest in the new partnership. Prior to the admission of Callie, the capital of the existing
partnership was ₱130,000 and an appraisal showed the partnership net assets were fairly stated.
What will be Callie’s initial capital balance?
a. ₱36,000
b. ₱50,000
c. ₱35,000
d. ₱30,000
22. Callie is admitted to the Adams & Beal Partnership under the bonus method. Callie contributes cash of
₱20,000 and non-cash assets with a market value of ₱30,000 and book value of ₱15,000 in exchange for a
20% ownership interest in the new partnership. Prior to the admission of Callie, the capital of the existing
partnership was ₱130,000 and an appraisal showed the partnership net assets were fairly stated.
What will be Callie’s initial capital balance?
a. ₱36,000
b. ₱50,000
c. ₱35,000
d. ₱30,000
23. Santiago, Aldaba and Tauzon are partners with capital balances of ₱392,000, ₱1,365,000 and ₱595,000
respectively, sharing profits and losses in the ratio of 3:2:1. Diaz is admitted as a new partner bringing with
him expertise and is to invest cash for 25% interest on the partnership which includes a credit of ₱367,500 for
bonus upon his admission. How much cash should Diaz contribute? (784,000)
a. ₱294,000
b. ₱787,500
c. ₱661,500
d. ₱1,050,000
For questions 24-25
Lima and Mitra are partners with a profit and loss ratio of 75:25 and capital balances of ₱100,000 and ₱50,000
respectively. Nova is to be admitted into the partnership by purchasing a 20% interest in the capital, profits and losses
for ₱60,000.
24. Assuming that no asset revaluation is to be made, the capital balances of Lima, and Mitra after the admission
of Nova are
a. Lima, ₱80,000 and Mitra, ₱40,000
b. Lima, ₱120,000 and Mitra, ₱60,000
c. Lima, ₱112,000 and Mitra, ₱38,000
d. Lima, ₱100,000 and Mitra, ₱50,000
25.
a.
b.
c.
d.
Assuming that asset revaluation is to be made, the capital balances of Lima, Mitra and Nova are
₱170,000; ₱70,000; ₱60,000
₱800,000; ₱40,000; ₱30,000
₱192,500; ₱77,500; ₱30,000
₱100,000; ₱50,000; ₱60,000
26. The capital accounts of the partnership of Silang, Pilar, and Agudo are presented below with their respective
profit and loss ratios:
Silang ₱278,000 (1/2)
Pilar
418,000 (1/3)
Agudo 192,000 (1/6)
Jacinto was admitted to the partnership when he purchased directly, for ₱264,000, a proportionate interest
from Silang and Pilar in the net assets and profits of the partnership. As a result, Jacinto acquired a one-fifth
interest in the net assets and profits of the firm. Assuming no asset revaluation is to be recorded, what is the
combined gain realized by Silang and Pilar upon the sale of a portion of their interests in the partnership to
Jacinto? (124,800)
a. ₱0
b. ₱86,400
c. ₱122,800
d. ₱ 164,000
27. The total of the partners’ capital accounts was ₱110,000 before the recognition of partnership asset
revaluation in preparation for the withdrawal of a partner whose profit and loss sharing ratio is 2/10. He was
paid P28,000 by the firm in final settlement for his interest. The remaining partners’ capital accounts,
excluding their share of the asset revaluation, totaled P90,000 after his withdrawal. The total asset
revaluation of the firm agreed upon was
a. ₱8,000
b. ₱20,000
c. ₱28,000
d. ₱40,000
For questions 28-30:
Julian, Kiamco, and Lapid are partners sharing profits in the ratio of 5:3:2, respectively. As of December 31, 2014, their
capital balances were P95,000 for Julian, P80,000 for Kiamco, P60,000 for Lapid. On January 1, 2016, the partners
admitted Manalo as a new partner and according to their agreement, Manalo will contribute ₱80,000 in cash to the
partnership and also pay ₱10,000 for 15% of Kiamco’s share. Manalo will be given a 20% share in profits, while the
original partners’ share will be proportionately the same as before. After the admission of Manalo, the total capital will
be P330,000 and Manalo’s capital will be ₱70,000.
28.
a.
b.
c.
d.
The amount of asset revaluation is
₱7,000
₱15,000
₱22,000
₱37,000
29.
a.
b.
c.
d.
The bonus in the admission of Manalo would be
₱6,600
₱11,000
₱12,000
₱22,000
30.
a.
b.
c.
d.
The balance of Kiamco’s capital, after the admission of Manalo, would be
₱72,600
₱74,600
₱79,100
₱81,100
31. The partnership of Roces, Bondoc, and Mabini have capital account balances as follows: Roces, ₱35,000;
Bondoc, ₱50,000; Mabini, ₱40,000. Their profit and loss ratios are 30%, 50%, and 20%, respectively. With the
consent and knowledge of Roces and Bondoc, Mabini sold his full interest to Roxas Mabini was paid ₱46,000
in cash. The new capital balances would be: (1.) Roces, (2.) Bondoc, and (3.) Roxas
a. ₱35,000; ₱50,000; ₱46,000
b. ₱36,800; ₱53,000; ₱41,200
c. ₱35,000; ₱50,000; ₱40,000
d. ₱35,000; ₱50,000; ₱6,000
32. Dangal, Evita and Flores share partnership profits in the ratio of 2:3:5. On September 30, Flores opted to
retire from the partnership. The capital balances on this date follow:
Dangal, Capital
₱25,000
Evita, Capital
₱40,000
Flores, Capital
₱35,000
How much is to be debited from Dangal, assuming Flores is paid P39,000 in full settlement of his partnership
interest?
a. ₱1,600
b. ₱2,400
c. ₱3,000
d. ₱4,000
33. Salgado, Tiangco and Umali are partners. Umali is permitted to withdraw from the partnership on December
31. It was agreed that the settlement is to be made by payments from the personal funds of the remaining
partners to Umali. Capital balances on December 31 show
Partner
Capital Balances
Profit Ratio
Salgado
₱30,000
30%
Tiangco
25,000
30%
Umali
45,000
40%
If Salgado and Tiangco paid Umali ₱48,000, how much is the undervaluation of assets if the transaction will be
recorded using the revaluation of assets method?
a. ₱500
b. ₱3,000
c. ₱5,000
d. ₱7,500
34. The statement of financial position as of June 30, 2015 for the partnership of Yumul, Yason and Ylagan shows
the following information:
Total Assets
P360,000
Yumul, Loan
Yumul, Capital
Yason, Capital
Ylagan, Capital
₱ 20,000
83,000
77,000
180,000
₱360,000
It was agreed among the partners that Yumul retires from the partnership and it was further agreed that the
assets be adjusted to their fair value of ₱408,000 as of June 30, 2015. The partnership would pay Yumul,
P121,000 cash for his partnership interest and includes the payment of loan to him. Yumul, Yason and Ylagan
share profits and losses, 25%, 25%, and 50%, respectively. What is Ylagan’s capital balance after the retirement
of Yumul?
a. ₱120,000
b. ₱180,000
c. ₱200,000
d. ₱360,000
35. Partner T is personally insolvent, owing ₱400,000. Personal assets will only bring ₱150,000 when liquidated.
At the same time, T has a credit capital balance in the partnership of ₱85,000. The capital amounts of the
other partners total a (credit) balance of ₱200,000. Under the doctrine of marshaling of assets, the personal
creditors of T can collect up to __________.
a. ₱150,000
b. ₱235,000
c. ₱400,000
d. ₱435,000
36. Partners Able, Baker, and Chapman have the following personal assets, personal liabilities, and partnership
capital balances:
Able
Baker
Chapman
Personal assets......... ₱30,000
₱ 80,000
₱60,000
Personal liabilities.... 25,000
50,000
72,000
Capital balances........ 50,000
(32,000)
70,000
Assume profits and losses are allocated equally. After applying the doctrine of marshaling of assets, the capital
balances for Able, Baker, and Chapman, respectively, would be
a. ₱50,000, ₱(2,000), and ₱58,000.
b. ₱48,000, 0, and ₱58,000.
c. ₱49,000, 0, and ₱57,000.
d. ₱34,000, 0, and ₱54,000.
37. Assume that a partnership had assets with a book value of ₱240,000 and a market value of ₱195,000, outside
liabilities of ₱70,000, loans payable to partner Able of ₱20,000, and capital balances for partners Able, Baker,
and Chapman of ₱70,000, ₱30,000, and ₱50,000. How much would Able receive upon liquidation of the
partnership assuming profits and losses are allocated equally?
a. ₱70,000
b. ₱90,000
c. ₱75,000
d. ₱55,000
For questions 38-40
The partners' income and loss sharing ratio is 2:3:5, respectively.
HAKAW, BACON, AND ASADO PARTNERSHIP
Statement of Financial Position
December 31, 2017
Assets
Liabilities and Partners' Equity
Cash
₱ 90,000
Liabilities
₱ 300,000
Non-cash assets
570,000
H, Capital
120,000
B, Capital
180,000
A, Capital
60,000
Total
₱660,000
Total
₱660,000
38. If the partnership is liquidated by selling the noncash assets for ₱390,000 and creditors are paid in full, which
of the following is not incorrect :note incorrect or correct? If correct letter D
a. Asado is to receive ₱30,000 cash in liquidation
b. Bacon is to receive ₱84,000 cash in liquidation
c. There is a gain of ₱180,000 in the sale of non-cash assets
d. Hakaw’s share in losses in ₱36,000
39. If the partnership is liquidated by selling the noncash assets for ₱750,000, and creditors are paid in full, which
of the following is incorrect
a. Asado is to receive ₱150,000 cash in liquidation
b. Bacon is to receive ₱156,000 cash in liquidation
c. There is a gain of ₱180,000 in the sale of non-cash assets
d. Hakaw’s share in gain in ₱36,000
40. If the partnership is liquidated and the noncash assets are worthless, the creditors will look to whose
partner's personal assets for settlement of the creditors' claims?
a. The personal assets of Partner Asado
b. The personal assets of Partners Hakaw and Bacon.
c. The personal assets of all the partners.
d. The personal assets of the partners are not available for partnership debts.
For questions 41-42
Silverio, Domingo, Reyes, and Pasko are partners sharing earnings in the ratio of 3/21; 4/21; 6/21; and 8/21. The
balances of their capital accounts on December 31, 2011 are as follows:
Silverio
₱ 1,000
Domingo
25,000
Reyes
25,000
Pasko
9,000
₱ 60,000
The partners decide to liquidate, and they accordingly convert the non-cash assets into ₱23,200 of cash. After paying the
liabilities amounting to ₱3,000, they have ₱22,200 to divide. Assume that a debit balance of any partner’s capital is
uncollectible.
41. The book value of the non-cash assets amounted to:
a. ₱25,200
b. ₱45,400
c. ₱61,000
d. ₱63,000
42.
a.
b.
c.
d.
The share of Silverio in the loss upon conversion of the non-cash assets into cash was:
₱4,972
₱5,257
₱5,400
None
For questions 43-44
Fleming, Durano, and Mart are partners in a wholesale business. On January 1, 2015 the total capital was ₱60,000 and
drawings presented as follows:
Capitals
Drawings
Fleming
₱12,500
₱ 7,500
Durano
10,000
5,000
Mart
37,500
2,500
Partners agree that profit and loss ratio are shared equally. Because of the failure of some debtors to pay their
outstanding accounts, the partnership loses heavily and is compelled to liquidate. After exhausting the partnership
assets, including those arising from an operating profit of ₱9,000 in 2015, they still owe ₱10,500 to creditors on
December 31, 2015. Fleming has no personal assets but the others are well off.
43. The partnership liquidation loss:
a. None
b. ₱20,000
c. ₱55,000
d. ₱64,500
44.
a.
b.
c.
d.
The amount to be received by Mart as a result of the liquidation:
₱1,637.50
₱9,750
₱14,250
₱19,500
For questions 45-50
The balance sheet for the partnership of Joan, Charles, and Thomas, whose shares of profits and losses are 40, 50 and 10
percent, is as follows
Cash
Inventory
₱50,000.00 Accounts Payable
360,000.00 Joan, Capital
Charles, Capital
Thomas, Capital
TOTAL ASSETS
₱410,000.00 TOTAL LIABILITIES AND
EQUITIES
₱150,000.00
160,000.00
45,000.00
55,000.00
₱410,000.00
Assume Charles is insolvent
45.
a.
b.
c.
d.
If the inventory is sold for ₱300,000.00, how much should Joan receive upon liquidation of the partnership?
₱48,000.00
₱100,000.00
₱136,000.00
₱160,000.00
46. If the inventory is sold for ₱180,000.00, how much should Thomas receive upon liquidation of the
partnership?
a. ₱28,000.00
b. ₱32,500.00
c. ₱37,000.00
d. ₱55,000.00
47. Using the same information as no. 46, how much would be the share of Joan to the deficiency of Charles, if
any?
a. ₱0.00
b. ₱32,500.00
c. ₱36,000.00
d. ₱45,000.00
48. Using the same information as no. 46, how much would be the share of Thomas to the deficiency of Charles,
if any?
a. ₱0.00
b. ₱5,500.00
c. ₱9,000.00
d. ₱7,500.00
49. If the inventory is sold for ₱100,000.00, how much should Joan invest after one of the partner’s deficiency
has been resolved upon?
a. ₱0.00
b. ₱56,000.00
c. ₱68,000.00
d. ₱12,000.00
50. If the inventory is sold for ₱100,000.00, how much should Thomas receive upon liquidation of the
partnership?
a. ₱0.00
b. ₱56,000.00
c. ₱68,000.00
d. ₱12,000.00
GOD BLESS TO EVERYONE
#kapitlang #CPAsinthemaking
21. A
Old partners 80%
New partner 20%
AC
P144,000
36,000
P180,000
CC
P130,000
50,000
P180,000
Bonus
P14,000
(14,000)
------
Old partners 80%
New partner 20%
AC
P144,000
36,000
P180,000
CC
P130,000
50,000
P180,000
Bonus
P14,000
(14,000)
------
22. A
23.
Total capital (P2,352,000 / 75%)
Interest acquired by Cuyugan
Cash to be contributed by Cuyugan
P3,136,000
x 25%
P 784,000
24.A
Lima, Capital (100,000 x 20%)
Mitra, Capital (50,000 x 20%)
Nova, Capital
Capital balances, beginning
Transfer of 20% capital
Capital balances, end
20,000
10,000
30,000
Lima
P100,000
(20,000)
P 80,000
Mitra
P50,000
( 10,000)
P40,000
Nova
30,000
P30,000
25. A.
Capital balances before admission Nova
Asset Revaluation
(P60,000  20%) – P150,000 = P150,000
Share on Asset Revaluation
Capital balances after asset revaluation
Interest transferred
Capital transferred to nova
Capital balances after the admission of Nova
26. B
Total Capital
P888,000
Fraction of interest transferred x
1/5
Total interest of Jacinto
P177,600
Payment of Jacinto
P264,000
Total interest of Jacinto
- P 177,600
Personal gained
86,400
Cariaso
P100,000
Carino
P50,000
(150,000x75%)
112,500
P212,500
20%
(P 42,500)
P 170,000
(150,000x25%)
37,500
P87,500
20%
(P17,500)
P70,000
Nova
60,000
P 60,000
Silang
Pilar
Total
₱278,000 x 1/5 – 55,600
418,000 x 1/5 – 83,600
139,200
Payment of Jacinto 264,000
Interest of Jacinto – 139,200
total
P124,800
27. B.
Total partners capital before asset revaluation
Total partners capital after asset revaluation
Asset Revaluation
P 110,000
90,000
P 20,000
28. B.
AC
P250,000
80,000
P330,000
Old partners
New partner
CC
P235,00
80,000
P315,000
ARM
P15,000
P15,000
29, D.
Payment to Kiamco
P10,000
15% transfer to Manalo P12,000
Bonus to the old partner P22,000
30. C
Capital bal. bef. adm
Transfer of 15% int.
Contribution of Manalo
Asset Revaluation
Bonus to old partners
Capital bal. after the
admission of Cordero
Julian
P95,000
7,500
11,000
P113,500
Kiamco
P80,000
( 12,000)
4,500
6,600
P79,100
Lapid
P60,000
Manalo
P 12,000
80,000
3,000
9,400
P67,400
(22,000)
P70,000
Total
P235,000
-----80,000
15,000
-----P330,000
31 C the P46,00 paid by Roxas to Mabini should not be reflected in the partnership book because the said amount was paid directly
to the partners. What is recorded is the same amount of the interest he paid in the partnership and the excess in the payment is a
personal gained of Mabini.
32, A
Flores, Capital
Dangal , Capital (P4,000 x2/5)
Evita Capital (P4,000 x 3/5)
Cash
35,000
1,600
2,400
39,000
33, D
Asset Revaluation method
Other Assets (P3,000  40%)
Umali, Capital
Cash
Salgado , Capital (P7,500 x 30%)
Tiangco , Capital (P7,500 x 30%)
7,500
45,000
48,000
2,250
2,250
34. C
Yumul
Loan and capital balances
P103,000
Yason
P77,000
Ylagan
P180,000
Revaluation of assets
12,000
12,000
24,000
Bonus to Dizon
6000
( 2,000)
( 4,000)
P121,000
P82,000
P200,000
Total
P360,000
48,000
408,000
Total assets
P360,000
New assets, Fair Market Value - P408,000
Asset Revaluation
P 48,000
Loan and capital balances of Yumul P103,000
Asset revaluation
P12,000
Total balance of Yumul
- P121,000
Bonus to Dizon
P6,000
35.B
Personal assets
credit capital balance in the partnership
Total
36 C
Able
Baker
Personal assets.........
₱30,000
Personal liabilities....
25,000
Total
5,000
Capital balances........
50,000
₱150,000
₱85,000
P235,000
Chapman
₱ 80,000
₱60,000
50,000
72,000
30,000
(12,00)
(32,000)
70,000
Ending balances
50,000
Offsetting
(1,000)
Total ending capital bal. 49,000
( 2,000)
2,000
0
58,000
(1,000)
57,000
37. B
loans payable to partner Able ₱20,000
capital balances Able
₱70,000
Total
90,000
38. letter D. correction in the question. Make the incorrect to correct
Cash
Profit and loss ratio
Balances before liquidation
Sale of non-cash assets and distribution of loss
Balances
Payment of liabilities
Balances
Offset
Balances
P 90,000
390,000
P480,000
(300,000)
P180,000
180,000
Non-cash
Assets
P570,000
(570,000)
Liabilities
P300,000
P300,000
(300,000)
Hakaw
2/10
P120,000
(36,000)
P84,000
84,000
(12,000)
72,000
C A P I T A L
Bacon
Asado
3/10
5/10
P180,000
P 60,000
( 54,000)
( 90,000)
P126,000
(P30,000)
126,000
(18,000)
108,000
(30,000)
30,000
0
39. B
Cash
Profit and loss ratio
Balances before liquidation
Sale of non-cash assets and distribution of loss
Balances
Payment of liabilities
Balances
P 90,000
750,000
P840,000
(300,000)
P540,000
Non-cash
Assets
Liabilities
P570,000
(570,000)
P300,000
P300,000
(300,000)
Hakaw
2/10
P120,000
36,000
P156,000
C A P I T A L
Bacon
Asado
3/10
5/10
P180,000
P 60,000
54,000
90,000
P234,000
P150,000
P156,000
P234,000
P150,000
40. C
41, C
Total assets = Total capital + Total liabilities
= P60,000 + P 3,000
Less Cash = P3,000 + P22,200 - P23,200
Book value of noncash assets
P 63,000
___2,000
P 61,000
42, B
P61,000 - P23,200 = P37,800 x 3/21
P 5,400
43. D.
Total capital (P45,000 + P9,000)
Total liabilities
Total loss on liquidation
P54,000
10,500
P64,500
44 B.
Fleming
P 12,500
( 7,500)
3,000
(21,500)
(P13,500)
13,500
Capital balances
Drawing
Distribution of net income
Loss on liquidation
Balances
Additional loss to Fleming
Balances
Durano
P 10,000
( 5,000)
3,000
(21,500)
P(13,500)
(6,750)
Mart
P 37,500
(2,500)
3,000
(21,500)
P 16,500
( 6,750)
P 9,750
45.C
Cash
Profit and loss ratio
Balances before liquidation
Sale of non-cash assets and distribution of loss
Balances
Payment of liabilities
Balances
P 50,000
300,000
P350,000
(150,000)
P200,000
Non-cash
Assets
P360,000
(360,000)
Liabilities
P150,000
P150,000
(150,000)
Joan
40%
P160,000
(24,000)
P136,000
136,000
C A P I T A L
Charles
Thomas
50%
10%
P 45,000
P 55,000
( 30,000)
( 6,000)
P15,000
P49,000
15,000
49,000
P23
46, A
Cash
Profit and loss ratio
Balances before liquidation
Sale of non-cash assets and distribution of loss
Balances
Payment of liabilities
Balances
Offset
Balances
P 50,000
180,000
P230,000
(150,000)
P80,000
Non-cash
Assets
P360,000
(360,000)
Liabilities
P150,000
P150,000
(150,000)
Joan
40%
P160,000
(72,000)
P88,000
88,000
(36,000)
52,000
P80,000
C A P I T A L
Charles
Thomas
50%
10%
P 45,000
P 55,000
( 90,000)
( 18,000)
(P45,000)
P37,000
(45,000)
45,000
37,000
(9,000)
28,000
47, C
48, C
49,D
Cash
Profit and loss ratio
Balances before liquidation
Sale of non-cash assets and distribution of loss
Balances
Payment of liabilities
Balances
Offset
Balances
Additional investment
Payment to partners
50, D
P 50,000
100,000
P150,000
(150,000)
--------
P12,000
P 12,000
Non-cash
Assets
P360,000
(360,000)
Liabilities
P150,000
P150,000
(150,000)
Joan
40%
P160,000
(104,000)
P56,000
56,000
(68,000)
(12,000)
12,000
----------
C A P I T A L
Charles
Thomas
50%
10%
P 45,000
P 55,000
( 130,000)
( 26,000)
(P85,000)
P29,000
(85,000)
85,000
------------
29,000
(17,000)
12,000
P12,000