INTERNATIONAL STATE COLLEGE OF THE PHILIPPINES
BACHELOR OF SCIENCE IN ACCOUNTANCY DEPARTMENT
DEPARTMENTAL EXAMINATION – 2ND SEMESTER S.Y 2020-2021
ACCOUNTING 12 | ACCOUNTING FOR PARTNERSHIP AND CORPORATION
| DEPT-EXAM 2020-2021
PROBLEM 4. Nakamangxa and Ginosebleedpudko are partners operating a grocery store.
The partnership agreement requires that profit and losses be divided as follows:
NAGKAMANGXA
GINOSEBLEEDPUDKO
Salaries
P20,000
Commission on gross sales
2%
Interest
on
average
8%
8%
capital balances
20% of net income before
Bonus
commission, and interest
but after salaries and
bonus.
Remainder
60%
40%
Additional information:
Gross sales for 2020 were P1,250,000. Income before deducting amounts for
salary, commission, interest and bonus were P200,000. Average capital balances of
Nagkamangxa and Ginosebleedpuko are P400,000 and P420,000 respectively. What are
the profit share of Nagkamangxa and Ginosebleedpudko, respectively?
PROBLEM
a.
b.
c.
d.
16. Loss from sale of treasury shares shall be charge to
Loss on sale of treasury shares to be reported as other expense.
Retained earnings and then share premium from treasury shares.
Share premium from treasury shares and then retained earnings.
Share premium from original issuance, share premium from treasury
shares and then retained earnings.
PROBLEM 6. The following are the capital account balances and the profit and loss
ratio of the partners in PME Company on December 31, 2020:
Capital Account Balances Profit and Loss Ratio
Kayapanako
P 240,000
25%
Kayapanemu
320,000
50%
Kayapanato
800,000
25%
On January 1, 2021, Kayapanila is admitted to the partnership under the following
agreement:
i.
Kayapanila is to share 1/3 in the profits and loss while the other
partners continue to participate in profits and loss in their original
ratio.
ii. Kayapanila is to pay Kayapanemu, P96,000 for a 1/4 of the latter’s
equity in the partnership net assets and is to invest P560,000 cash in
the partnership.
iii. The total capital after Kayapanila’s admission is to be P2,080,000 of
which Kayapanila’s capital account is to show P600,000.
The capital account balances of the partners after Kayapanila’s admission are:
a. Kayapanako, P294,000; Kayapanemu, P332,000; Kayapanako, P854,000;
Kayapanila, P600,000
b. Kayapanako, P290,000; Kayapanemu, P340,000; Kayapanako, P850,000;
Kayapanila, P600,000
c. Kayapanako, P600,000; Kayapanemu, P313,488; Kayapanako, P836,672;
Kayapanila, P600,000
d. Kayapanako, P290,000; Kayapanemu, P332,000; Kayapanako, P854,000;
Kayapanila, P600,000