Par t ner shi pExer ci ses Par t ner shi pFor mat i on [ 1 ] . Emi l andPear l f or m anewpar t ner shi p.Emi l i nvest sP300, 000i ncashf or her60per centi nt er esti nt hecapi t al andpr of i t soft hebusi ness .Pear l cont r i but es l andt hathasanor i gi nal costofP40, 000andaf ai rmar ketval ueofP70, 000,anda bui l di ngt hathasat axbasi sofP50, 000andaf ai rval ueofP90, 000.Thebui l di ngi s subj ectt oaP40, 000mor t gaget hatt hepar t ner shi pwi l l assume.Whatamountof cashs houl dPear l cont r i but e? a.P40, 000 b.P80, 000 c.P1 1 0, 000 d.P1 5, 0000 [ 2] . TheGr eenandRedpar t ner shi pwasf or medonJanuar y2,201 1 .Undert he par t ner shi pagr eement ,eachpar t nerhasanequal i ni t i al capi t al bal anceaccount ed f orundert hegoodwi l l met hod.Par t ner shi pneti ncomeorl ossi sal l ocat ed60% t o Gr eenand40% t oRed.Tof or mt hepar t ner shi p,Gr eenor i gi nal l ycont r i but edasset s cost i ngP30, 000wi t haf ai rval ueofP60, 000onJanuar y2,201 1 ,andRed cont r i but edP20, 000i ncash.Dr awi ngsbyt hepar t ner sdur i ng201 1t ot al edP3, 000 byGr eenandP9, 000byRed.Thepar t ner shi p’ s201 1neti ncomewasP25, 000. Red’ si ni t i al capi t al bal ancei nt hepar t ner shi pi s : a.P20, 000. b.P25, 000. c.P40, 000. d.P60, 000. [ 3] . Pi r ant eandWi l sondr af t edapar t ner shi pagr eementt hatl i st st hef ol l owi ng asset scont r i but edatt hepar t ner shi p’ sf or mat i on: Cont r i but edby Pi r ant e Cash Wi l son P40, 000 P60, 000 I nvent or y - 30, 000 Bui l di ng - 80, 000 Fur ni t ur eandequi pment 30, 000 - Thebui l di ngi ssubj ectt oamor t gageofP20, 000,whi cht hepar t ner shi p assumed.Thepar t ner shi pagr eemental sospeci f i est hatpr of i t sandl ossesar et obe di st r i but edevenl y.Whatamount sshoul dber ecor dedascapi t al f orPi r ant eand Wi l sonatt hef or mat i onoft hepar t ner shi p? a. P70, 000andP1 70, 000,r espect i vel y. b. P70, 000andP1 50, 000,r espect i vel y. c. P1 1 0, 000f oreachpar t ner . d. P1 20, 000f oreachpar t ner . [ 4] . AAandBel enf or medapar t ner shi pandt heyagr eedt oshar ei ni t i al capi t al equal l y,al t houghAAcont r i but edP1 50, 000andBel encont r i but edP1 26, 000i n i dent i f i abl easset s.Undert hebonusappr oacht oadj ustt hecapi t al account s,Bel en r ecei ved( gave)abonusequal t o: a. P24, 000 b. P1 2, 000 c. ( P24, 000) d. ( P1 2, 000) [ 5] . AA,BB,andCCar et of or m apar t ner shi p.AAi st ocont r i but ecashof P1 00, 000;BB,P1 0, 000;and,CC,P1 00, 000.AAandCCar enott oact i vel y par t i ci pat ei nt hebusi nessbutwi l l r ef ercust omer s ,whi l eBBwi l l managet hef i r m.BB hast ogi veuphi spr esentj obwhi chgi vesheranannual i ncomeofP1 20, 000.The par t ner sdeci dedt hatpr of i t sandl ossesshal l beshar edequal l y.Uponf or mat i on, par t ner s’ capi t al bal anceswoul dbe: a. P 70, 000,P 70, 000,andP 70, 000,r es pect i vel y. b. P1 00, 000,P1 0, 000,andP1 00, 000,r espect i vel y. c. P1 00, 000,P1 30, 000,andP1 00, 000,r es pect i vel y. d. P1 1 0, 000,P1 1 0, 000,andP1 1 0, 000,r es pect i vel y. [ 6] . Br endaandCat hyf or medapar t ner shi pandagr eedt odi vi dei ni t i al capi t al equal l y,event houghBr endacont r i but edP200, 000andCat hycont r i but edP1 68, 000 i ni dent i f i abl easset s.Undert hebonusappr oacht or ecor dt hecont r i but i onsoft he par t ner s,Cat hy’ scapi t al accountshoul dbecr edi t edf or a. P200, 000. c.P1 84, 000 b. P1 68, 000. d.P1 00, 000 [ 7] . OnMay,31 ,201 1 ,Al l en,Bel en,andCenenf or medapar t ner shi pby combi ni ngt hei rbusi nesses.Al l engi vecashofP50, 000.Bel engaveapr oper t ywi t ha car r yi ngamountofP30, 000,anor i gi nal costofP40, 000,andaf ai rmar ketval ueof P80, 000.Bel en’ spr oper t y,however ,hasaP35, 000mor t gagef orwhi cht henew par t ner shi paccept edl egal r es ponsi bi l i t y.Cenengaveadel i ver yequi pmentwi t ha bookval ueofP30, 000,anacqui si t i oncostofP75, 000,andanappr ai sedval ueof P55, 000.I twasagr eedt hatpr of i t sandl ossesar et obeshar edequal l y.Thepar t ner wi t ht hebi ggestcapi t al accountbal anceasofMay31 ,201 1 ,i s a. Al l en b. Bel en c. Cenen d. Al l enhaveequal capi t al bal ance. [ 8] . Abel andCar rf or medapar t ner shi pandagr eedt odi vi dei ni t i al capi t al out l ay equal l y,event houghAbel cont r i but edP1 00, 000andCar rcont r i but edP84, 000i n i dent i f i abl easset s.Undert hebonusappr oacht oadj ustt hecapi t al account s,Car r ’ s uni dent i f i abl eassetshoul dbedebi t edf or a. P46, 000 b. P8, 0000 c. P1 6, 000 d. P0- [ 9] . OnOct ober1 ,201 1 ,Car l aandCl ar aj oi nedi napar t ner shi p.Car l a cont r i but edcashwhi l eCl ar acont r i but edmer chandi sewor t hP25, 000andasecondhanddel i ver yt r uckcur r ent l yval uedatP50, 000butencumber edbyaoneyear chat t el mor t gagenot ef orP1 5, 000.I fi ni t i al capi t al bal ancesar et oconf or mt ot he pr of i t shar i ngr at i oof2: 3,r espect i vel y,t heamountofcashcont r i but edbyCar l awas: a. P24, 000 b. P30, 000 c.P40, 000 d.P50, 000 [ 1 0] . AA,BB,andCCar et of or m apar t ner shi p.AAi st ocont r i but ecashof P1 00, 000;BB,P1 0, 000,andCC,anequi pmentval uedatP1 00, 000.AAandCCar e nott oact i vel ypar t i ci pat ei nt hebusi nessbutwi l l r ef ercust omer s ,whi l eBBwi l l managet hef i r m.BBhast ogi veupherpr esentj obwhi chgi vesheranannual i ncomeofP1 20, 000.Thepar t ner sdeci dedt hatpr of i t sandl ossesshal l beshar ed equal l y.Uponf or mat i on,assumi ngachat t el mor t gageofP1 0, 000ont heequi pment i sassumedbyt hepar t ner shi p,t henetasset soft hepar t ner shi pi sequal t o: a.P21 0, 000 b.P200, 000 c.P220, 000 d. P330, 000 [ 1 1 ] . OnOct ober1 ,201 1 ,Mel andGar r i pool edt hei rasset sandf or ma par t ner shi p,wi t ht hef i r mt ot akeovert hei rbusi nessasset sandassumet hei r l i abi l i t i es.Thepar t ner ’ scapi t al sar et obebasedonnetasset st r ansf er r edaf t ert he f ol l owi ngadj ust ment s:Gar r i ’ si nvent or yi st obei ncr easedbyP3, 000;anal l owance f orbaddebt sofP1 , 000andP1 , 500ar et obesetupi nt hebooksofMel andGar r i , r es pect i vel y;andP4, 000ofaccount spayabl ear et ober ecogni zedi nMel ’ sbooks. Thei ndi vi dual t r i al bal ancesonOct ober1showt hef ol l owi ng: Mel Asset s P1 1 3, 000 Gar r i P75, 000 Li abi l i t i es 34, 500 5, 000 Capi t al 78, 500 70, 000 Whati st hecapi t al bal anceofMel andGar r i assumi ngt heyagr eet oshar ecapi t al equal l y? a. P65, 000 b. P72, 500 c. P74, 250 d. P80, 000 [ 1 2] . ChonaandChar of or medapar t ner shi ponMay31 ,201 1 .Chona’ scont r i but i on consi s t edofherpr opr i et or shi p’ snetasset swi t hcur r entf ai rval ueofP60, 000.Char o cont r i but edenoughcasht osecur eaonef our t hi nt er esti nt hepar t ner shi p.I fChonai s al l owedgoodwi l l cr edi tequal t o20% ofheri ni t i al capi t al ,Char o’ scashcont r i but i onwas: a. P1 5, 000 b. P20, 000 c.P25, 000 d. P30, 000 [ 1 3] . Fl or es,Per al t a,andJosear ef or mi nganewpar t ner shi p.Fl or eswi l l i nvestcashof P1 20, 000andhi sof f i ceequi pmentcost i ngP1 44, 000buthasamar ketval ueofP60, 000. Per al t ai st oi nvestcashofP1 92, 000andJosei st ocont r i but eP60, 000cashandabr and newdel i ver yt r uckwi t hamar ketval ueofP1 44, 000al t houghheboughti tf oronl yP1 20, 000. Thepar t ner swi l l shar epr of i t sandl ossesi nt her at i oof25: 25: 50f orFl or es ,Per al t aandJose, r espect i vel y. Thecapi t al bal ancesoft hepar t ner suponf or mat i onar e: Fl or es Per al t a Jose a. P264, 000 P1 92, 000 P1 80, 000 b. P1 80, 000 P1 92, 000 P204, 000 c. P1 92, 000 P1 92, 000 P1 92, 000 d. P21 2, 000 P21 2, 000 P21 1 , 200 [ 1 4] . DJandEJ,onMay31 ,201 1 ,pool edt hei rnetasset st of or m apar t ner shi p,wi t ht he newf i r mt aki ngovert hebusi nessasset sandassumi ngt hei rl i abi l i t i es .Thepar t ner ’ scapi t al s ar et obebasedonnetas set st r ansf er r edaf t ert hef ol l owi ngadj ust ment s:al l owancef or doubt f ul account sofP1 , 000andP1 , 500ar et obes etupont hebooksofDJandEJ, r espect i vel y;EJ’ si nvent or yi st obei ncr easedbyP3, 000;and,account spayabl eofP4, 000 i st ober ecor dedonDJ’ sbooks .Thei ndi vi dual t r i al bal ancesont hi sdat eshow: DJ Ass et s EJ P1 05, 000 P1 1 3, 000 Li abi l i t i es 35, 000 34, 500 Capi t al 70, 000 78, 500 Whati sEJ’ sadj ust edcapi t al bal ance? a. P77, 000 b. P80, 000 c.P81 , 500 d.P85, 500 [ 1 5] . Whenpr oper t yot hert hancashi si nvest edi napar t ner shi p,atwhatamountshoul d t henoncashpr oper t ybecr edi t edt ot hecont r i but i ngpar t ner ’ scapi t al account ? a. Fai rval ueatt hedat eofcont r i but i on. b. Cont r i but i ngpar t ner ’ sor i gi nal cost . c. Assessedval uat i onf orpr oper t yt axpur poses . d. Cont r i but i ngpar t ner ’ st axbasi s . [ 1 6] . Pul ai nvi t esPut i t oj oi nhi sbusi nessasapar t ner .Thecapi t al accountofPul ahasa cr edi tbal anceofP300, 000.Put i wi l l i nvestcashofP1 20, 000andhewi l l begi venacapi t al cr edi tof30% oft het ot al capi t al af t ermaki ngt hef ol l owi ngadj ust ment si nt hebooksofPul a: ( a)Theaccumul at eddepr eci at i onoft heequi pmenti st obei ncr easedbyP7, 500;( b) Pr epai dexpensesar et ober educedbyP2, 400. Thecapi t al accountofPul aandPut i i mmedi at el yaf t ert hef or mat i onoft hepar t ner shi p ar e: a. P300, 000andP1 20, 000,r espect i vel y; b. P290, 1 00andP1 20, 000,r espect i vel y; c. P287, 070andP1 23, 030,r espect i vel y; d. P287, 070andP 40, 000,r espect i vel y. [ 1 7] . OnMar ch1 ,201 1 ,JhanandFebf or medapar t ner shi pwi t heachcont r i but i ngt he f ol l owi ngasset s: Jhan Feb Cash P30, 000 P70, 000 Machi ner yandEqui pment 25, 000 75, 000 Bui l di ng 225, 000 Fur ni t ur eandFi xt ur es 1 0, 000 - Thebui l di ngi ssubj ectt oamor t gagel oanofP90, 000,whi chi st obeassumedbyt he par t ner shi p.Thepar t ner shi pagr eementpr ovi dest hatJhanandFebshar epr of i t sand l osses30per centand70per cent ,r espect i vel y. Ass umi ngt hatt hepar t ner sagr eedt obr i ngt hei rr espect i vecapi t al i npr opor t i ont ot hei r r espect i vepr of i tandl ossr at i o,andusi ngFeb’ scapi t al ast hebase,howmuchcashi st obe i nvest edbyJhan? a.P1 9, 000 b.P30, 000 c.P40, 000 d.P55, 000 [ 1 8] . Bel ,Joy,andFr anco,newCPAs,ar et of or m apar t ner shi p.Bel wi l l cont r i but ecash ofP50, 000andhi scomput ert hator i gi nal l ycostP60, 000butwi t hasecondhandval ueof P25, 000.Joywi l l cont r i but eP80, 000i ncash.Fr anco,whosef ami l ysel l scomput er s,wi l l cont r i but eP25, 000i ncashandabr andnewcomput erwi t hpr i nt ert hatcosthi sf ami l y’ s comput erdeal er shi pP50, 000butwi t har egul arsel l i ngpr i ceofP60, 000.Thet hr eeagr eet o shar epr of i t sandl ossesequal l y.Uponf or mat i on,capi t al bal ancesar e: a. Bel ,P 75, 000;Joy,P80, 000;and,Fr anco,P85, 000 b. Bel ,P 80, 000;Joy,P80, 000;and,Fr anco,P80, 000 c. Bel ,P 88, 333;Joy,P88, 333;and,Fr anco,P88, 334 d. Bel ,P1 1 0, 000;Joy,P80, 000;and,Fr anco,P75, 000 [ 1 9] . Mar kadmi t sJi menezasapar t neri nt hebusi ness .Bal ancesheetaccount sof Mar kj ustbef or et headmi ssi onofJi menezshow:Cash,P26, 000,account sr ecei vabl e, P1 20, 000,mer chandi sei nvent or y,P1 80, 000,andaccount spayabl eP62, 000.I twas agr eedt hatf orpur posesofest abl i s hi ngMar k’ si nt er est ,t hef ol l owi ngadj ust ment sbemade: A. Anal l owancef ordoubt f ul account sof3% ofaccount sr ecei vabl ei st obeest abl i shed; B. Mer chandi sei nvent or yi st obeadj ust edupwar dbyP25, 000;and C.Pr epai dexpensesofP3, 600andaccr uedl i abi l i t i esofP4, 000ar et ober ecogni zed. I fJi menezi st oi nvestsuf f i ci entcasht oobt ai n2/ 5equi t yi nt hepar t ner s hi p,howmuch woul dJi menezcont r i but et ot henewpar t ner shi p? a.P1 76, 000 b.P1 90, 000 c.P 95, 000 d.P1 1 3, 980 [ 20] . Thebal ancesheetasofJul y31 ,201 1f ort hebusi nessownedbyGl or i ant sshows t hef ol l owi ngasset sandl i abi l i t i es: Cash P 2, 500 Account sRecei vabl e 1 0, 000 Mer chandi seI nvent or y 1 5, 000 Fi xt ur es 1 8, 000 Account sPayabl e 6, 000 I ti sest i mat edt hat5% oft heaccount sr ecei vabl esmaypr oveuncol l ect i bl e.Mer chandi se i nvent or yi ncl udesobsol et ei t emscost i ngP5, 000ofwhi chP2, 000mi ghtst i l l ber eal i zed. Depr eci at i onhasneverbeenr ecor dedf ort hef i xt ur eswhi char eal r eadyt woyear sol d.They haveanest i mat edusef ul l i f eof1 0year s ,andhaveacur r entf ai rval ueofP20, 000.Cr uzant s i st obeadmi t t edasapar t neruponhi si nvest mentofP20, 000cashandP1 0, 000wor t hof mer chandi se.Whati st het ot al asset soft hepar t ner shi p? a.70, 500 b.48, 000 c.67, 500 d.74, 000 Quest i ons21and22ar ebasedont hef ol l owi ngi nf or mat i on: Sel ect edbal ancesheetaccount sofSi l vanoonDecember31 ,201 1ar eshownbel ow: Cash P30, 000 Account sr ecei vabl e 25, 000 I nvent or y 45, 000 Fur ni t ur e 32, 000 Account spayabl e 8, 000 Thef ol l owi ngadj ust ment sar et obemadebef or eheagr eet oadmi tPegasusasapar t neri n exchangef orhi si nvest mentofP20, 000cash: § 3% baddebt sshoul dbepr ovi ded. § Thef ai rval ueoft hef ur ni t ur ei sP27, 000. § P5, 000oft hei nvent or yi sobsol et ebutcanst i l l besol df orP3, 000. [ 21 ] . Af t eradj ust ment ,howmuchcapi t al shoul dber ef l ect edi nt hebooksofSi l vano? a. P1 1 5, 250 b. P1 1 6, 250 c.P1 24, 000 d.P1 32, 250 [ 22] . Howmuchi st het ot al asset soft henewpar t ner shi p? a.P1 1 6, 250 b.P1 24, 000 c.P1 24, 250 d.P1 44, 250 [ 23] . OnSept ember30,201 1 ,Pai nadmi t sGai nf orani nt er esti nhi sbusi ness .Ont hi s dat e,Pai n’ scapi t al accountshowsabal anceofP1 58, 400.Thef ol l owi ngwer eagr eedupon bef or et hef or mat i onoft hepar t ner shi p: 1 . Pr epai dexpensesofP1 7, 500andaccr uedexpensesofP5, 000ar et ober ecogni zed. 2. 5% oft heout st andi ngaccount sr ecei vabl eofLopezamount i ngt oP1 00, 000i st obe r ecogni zedasuncol l ect i bl es. 3. Gai ni st obecr edi t edwi t haonet hi r dequi t yi nt hepar t ner shi pandi st oi nvestcash asi def r om t heP50, 000wor t hofmer chandi se. Theamountofcasht obei nvest edbyGai nandt het ot al capi t al oft hepar t ner shi par e: a.32, 950and248, 850,r espect i vel y. b.55, 300and221 , 200,r espect i vel y. c.82, 950and248, 850,r espect i vel y. d.32, 950and1 71 , 200,r espect i vel y. [ 24] . OnMay1 ,201 1 ,Jul yandJunef or medapar t ner shi pandagr eedt oshar epr of i t s andl ossesi nt her at i oof3: 7,r espect i vel y.Jul ycont r i but edacomput ert hatcosthi m P50, 000.Junecont r i but edP200, 000cash.Thecomput erwassol df or55, 000onMay1 , 201 1i mmedi at el yaf t ert hef or mat i onoft hepar t ner shi p.Whatamountshoul dber ecor ded i nJul y’ scapi t al accountonf or mat i onoft hepar t ner shi p? a. P55, 000 b. P51 , 000 c. P60, 000 d. P50, 000 [ 25] . Yel l ow,Or angeandVi ol etf or m apar t ner s hi ponMay1 ,201 1 .Theyagr eet hat Yel l owwi l l cont r i but eof f i ceequi pmentwi t hat ot al f ai rval ueofP40, 000;Or angewi l l cont r i but edel i ver yequi pmentwi t haf ai rval ueofP80, 000;andVi ol etwi l l cont r i but ecash.I f Vi ol etwant saonet hi r di nt er esti nt hecapi t al andpr of i t s,howmuchshoul dshei nvest ? a.P 40, 000 b.P 60, 000 c.P1 20, 000 d.P1 80, 000 [ 26] . Wi l derandNestwi l l pool t hei rnetasset sandf or m apar t ner shi p,whi chwi l l t ake overt heasset sandassumet hel i abi l i t i es.Theagr eedcapi t al oft henewpar t ner shi pi st he t ot al netasset st obet r ans f er r edsubj ectt ot hef ol l owi ngadj ust ment s: § Wi l der ’ si nvent or yi st obei ncr eas edbyP3, 000. § Account sr ecei vabl eofP1 , 000andP1 , 500f orWi l derandNestr espect i vel y,wi l l be wr i t t enof f . § Accr uedexpensesofP4, 000ar et ober ecogni zedi nWi l der ’ sbooks. Theunadj ust edcapi t al ofWi l deri sP78, 500andNesti sP70, 000. Whati st hecapi t al bal anceofeachpar t nerassumi ngt heyagr eet obeequal par t ner s? a.P65, 000 b.P72, 500 c. P74, 250 d. P80, 000 [ 27] . OnOct ober1 ,201 1 ,Cl ar aandMar i aj oi nedi napar t ner shi p.Cl ar acont r i but ed cashwhi l eMar i acont r i but edmer chandi sewor t hP25, 000andasecond–handdel i ver y t r uckcur r ent l yval uedatP50, 000butencumber edbyaoneyearchat t el mor t gagenot ef or P1 5, 000.I fi ni t i al capi t al bal ancesar et oconf or mt ot hepr of i t shar i ngr at i oof2: 3, r espect i vel y,t heamountofcashcont r i but edbyCl ar awas: a.P24, 000 b.P30, 000 c.P40, 000 d.P50, 000 Quest i ons28and29ar ebasedont hef ol l owi ngi nf or mat i onaboutAgaMat aPar t ner shi p: AgaandMat aar epl anni ngt of or m apar t ner shi p.Agawi l l i nvestP20, 000f ora20% i nt er est i nt henewpar t ner shi p.Mat awi l l i nvestcashandhi sequi pmentwi t hamar ketval ueof P50, 000.Theywi l l shar epr of i t sandl ossesequal l y. [ 28] . Howmuchcashshoul dMat ai nvest ? a.P30, 000 b.P50, 000 c.P60, 000 d.P80, 000 [ 29] . Howmuchi st het ot al cashi nvest mentoft hepar t ner s? a.P30, 000 b.P50, 000 c.P60, 000 d.P80, 000 [ 30] . Al andMacmoddeci det of or m apar t ner shi p.Thei ni t i al i nvest ment soft he par t ner swi l l i ncl udecashofP1 20, 000f orAl andP80, 000f orMacmod.Al wi l l t r ansf erhi s of f i ceequi pmentwi t habookval ueofP96, 000andaf ai rmar ketval ueofP84, 000t ot he par t ner shi p.Macmodwi l l t r ansf erhi sl andf ai r l yval uedatP1 , 000, 000andt hebui l di ng t her eonf ai r l yval uedatP600, 000.Macmodhasj ustboughtt heseatal umpsum pr i ceof P1 , 800, 000.I naddi t i on,t hepar t ner shi pwi l l assumet hemor t gageofP400, 000ont he bui l di ng. Whatwi l l bet het ot al capi t al oft hepar t ner shi p? a.P1 , 484, 000 b.P1 , 496, 000 c.P1 , 684, 000 d.P1 , 946, 000 Par t ner shi pOper at i on [ 31 ] . Mr .Zoom andhi sver ycl os ef r i end,Mr .Boom,f or medapar t ner shi ponJanuar y1 , 201 1 ,wi t hZoom cont r i but i ngP1 6, 000cashandBoom cont r i but i ngequi pment ,wi t habook val ueofP6, 400andf ai rval ueofP4, 800,andi nvent or yi t ems ,wi t habookval ueofP2, 400 andf ai rval ueofP3, 200.Dur i ng201 1 ,Boom madeaddi t i onal i nvest ment sofP1 , 600onApr i l 1andP1 , 600onJune1 ,andwi t hdr ewP4, 000onSept ember1 .Zoom hadnoaddi t i onal i nvest ment sorwi t hdr awal sdur i ngt heyear .Whatwast heaver agecapi t al bal anceofMr . Boom dur i ng201 1 ? a. P9, 600 b. P8, 800 c. P8, 000 d. P7, 200 [ 32] . Dul ceMar t i n,apar t neri napar t ner shi pt hatcar r i est henameofTheSweetShop, hasa30% par t i ci pat i oni npar t ner shi ppr of i t s .Hercapi t al accounthasanetdecr easeof P48, 000dur i ng201 1 .I nt hesameyear ,shewi t hdr ewP1 04, 000( char gedagai nsthercapi t al account )andcont r i but edpr oper t yval uedatP20, 000t ot hepar t ner shi p.Theneti ncomeof t hepar t ner shi pf or201 1was : a. P 36, 000 b. P1 20, 000 c. P1 32, 000 d. P440, 000 [ 33] . Par t ner sJose,Luci ano,andPl aci dohaveaver agecapi t al bal ancesofP240, 000, P1 20, 000,andP80, 000,r espect i vel y,dur i ng201 1 .Eachpar t nerr ecei ves1 0% i nt er eston hi saver agecapi t al bal ance.Af t erdeduct i ngsal ar i esofP60, 000f orJoseandP40, 000f or Pl aci do,t her esi dual pr of i torl ossi sdi vi dedequal l y.I n201 1 ,t hepar t ner shi psust ai neda P66, 000l ossbef or epar t ner s’ i nt er est sandsal ar i es .Byhowmuchwoul dPl aci do’ scapi t al accountchange? a. P20, 000i ncr ease b. P22, 000decr ease c. P32, 000decr ease d. P48, 000i ncr ease [ 34] . OnJanuar y1 ,201 1 ,ZeepandBeephavecapi t al bal ancesofP20, 000and P1 6, 000,r espect i vel y.OnJul y1 ,201 1 ,Zeepi nvest edanaddi t i onal P4, 000whi l eBeep wi t hdr ewP1 , 000.Pr of i t sandl ossesar edi vi dedasf ol l ows:Beepi st hemanagi ngpar t ner andassuchshal l r ecei veP1 6, 000assal ar y,wi t hZeepr ecei vi ngP7, 200;bot hpar t ner s shoul dr ecei vei nt er estof1 0% basedont hei rbegi nni ngcapi t al bal ances,t oof f setwhat ever di f f er encei ncapi t al i nvest ment st heyhave;and,anyr emai ndershal l bedi vi dedequal l y.The neti ncomeoft hepar t ner shi pf or201 1wasP9, 600.WhatwasZeep’ sshar ei nneti ncome f or201 1 ? a. P9, 200 b. P4, 800 c. P 880 d. P 600 [ 35] . RedandWhi t ef or medapar t ner shi pi n201 1 .Thepar t ner shi pagr eementpr ovi des f orannual sal ar yal l owancesofP55, 000f orRedandP45, 000f orWhi t e.Thepar t ner s shar epr of i t sequal l yandl ossesi na60: 40r at i o.Thepar t ner shi phadear ni ngsofP80, 000 f or201 1bef or eanyal l owancet opar t ner s .Whatamountoft heseear ni ngsshoul dbe cr edi t edt oeachpar t ner ’ scapi t al account ? Red Whi t e a.P40, 000 P40, 000 b.P43, 000 P37, 000 c.P44, 000 P36, 000 d.P45, 000 P35, 000 [ 36] . OnJanuar y2,201 1 ,BuenoandPer ezf or medapar t ner shi pwi t hcapi t al di st r i but i onsofP1 75, 000andP25, 000,r espect i vel y.Theyagr eedt oshar epr of i t sandl os ses 80% and20%,r espect i vel y.Per ezi st hegener al managerandwor ksi nt hepar t ner shi pf ul l t i me.Per ezi sgi ven sal ar yofP5, 000amont h;ani nt er estof5% onst ar t i ngcapi t al ;anda bonusof1 5% ofnetpr of i tbef or et hesal ar y,i nt er es t ,andbonus .Thecondensedpr of i tand l ossst at ementoft hepar t ner shi p,f ort heyearendedDecember31 ,201 1 ,i sasf ol l ows: Netsal es Costofsal es Gr osspr of i tonsal es P875, 000 700, 000 P1 75, 000 Expenses( i ncl udi ngsal ar y,i nt er estandbonus ) Netpr of i t Thebonusi n201 1i s a. P1 3, 304. 35 b. P1 8, 000. 00 c. P1 5, 300. 00 d. P20, 700. 00 1 43, 000 P 32, 000 Quest i ons37&38ar ebasedont hef ol l owi ngi nf or mat i on: Her m,Mar c,andAl exf or medapar t ner shi ponJanuar y1 ,201 1 ,andcont r i but edP1 50, 000, P200, 000,andP250, 000,r espect i vel y.Thear t i cl esofcopar t ner shi ppr ovi dest hatt he oper at i ngi ncomebeshar edamongt hepar t ner sasf ol l ows:assal ar y,P24, 000f orHer m, P1 8, 000f orMar c,andP1 2, 000f orAl ex;i nt er estof1 2% ont heaver agecapi t al dur i ng201 1 oft het hr eepar t ner s;and,t her emai nderi nt her at i oof2: 4: 4,r espect i vel y. Theoper at i ngi ncomef ort heyearendi ngDecember31 ,201 1amount edt oP1 76, 000.Her m cont r i but edaddi t i onal capi t al ofP30, 000onJul y1andmadeadr awi ngofP1 0, 000on Oct ober1 ;Mar ccont r i but esaddi t i onal capi t al ofP20, 000onAugust1andmadeadr awi ng ofP1 0, 000onOct ober1 ;and,Al exmadeadr awi ngofP30, 000onNovember1 . [ 37] . Thedi vi si onoft heP1 76, 000oper at i ngi ncomei s: a. Her m,P53, 760;Mar c,P62, 520;and,Al ex,P59, 720 b. Her m,P35, 200;Mar c,P70, 400;and,Al ex,P70, 400 c. Her m,P48, 400;Mar c,P66, 800;and,Al ex,P60, 800 d. Her m,P53, 1 80;Mar c,P62, 060;and,Al ex,P60, 760 [ 38] . Thepar t ner s’ capi t al bal ancesonDecember31 ,201 1ar e: a. Her m,P1 79, 680;Mar c,P229, 360;and,Al ex,P239, 360 b. Her m,P1 79, 760;Mar c,P229, 520;and,Al ex,P239, 520 c. Her m,P1 89, 680;Mar c,P239, 360;and,Al ex,P269, 360 d. Her m,P223, 1 80;Mar c,P272, 060;and,Al ex,P280, 760 [ 39] . Thepar t ner shi pagr eementofBi ngandBongpr ovi dest hatBi ngi st or ecei vea 20% bonusonpr of i t sbef or et hebonus .Remai ni ngpr of i t sandl ossesar edi vi dedi nt he r espect i ver at i oof2: 3.Whi chpar t nerhasagr eat eradvant agewhent hepar t ner shi pr eal i zes apr of i torwheni tsust ai nsal oss? Pr of i t a. Bi ng Loss Bong b. Bi ng Bi ng c. Bong Bi ng d. Bong Bong [ 40] . Mi chel l e,anact i vepar t neri nt heMi chel l eEsmePar t ner shi p,r ecei vesanannual bonusof25% oft hepar t ner shi pi ncomeaf t erdeduct i ngt hebonus .Fort heyearended December31 ,201 1 ,t hepar t ner shi pi ncomebef or ebonusamount edt oP240, 000.The bonusofMi chel l ef ort heyear201 1i s a. P45, 000 b. P48, 000 c. P60, 000 d. P80, 000 Par t ner shi pDi ssol ut i on–Admi ssi onofPar t ner [ 41 ] . Mar kandVal er i ear epar t ner swi t hcapi t al sP200, 000andP1 00, 000andshar i ng pr of i t sandl ossesat3: 1 ,r espect i vel y.Theydeci dedt oadmi tNor aasanewpar t nerwi t ha 50% i nt er esti nt hef i r m.Nor ai nves t edcashofP1 50, 000,andMar kandVal er i et r ansf er r ed por t i onsoft hei rcapi t al sasabonust oNor a.Af t erNor a’ sadmi ssi on,Val er i e’ scapi t al woul d be: a. P 37, 500 c.P 81 , 250 b. P 56, 250 d.P1 00, 000 [ 42] . Ti t oandVi c,par t ner sshar i ngpr of i t sandl ossesequal l y,havecapi t al bal ancesof P90, 000each.Joeyi sadmi t t edasanewpar t ner ,maki ngcashi nvest mentofP1 20, 000,t o aonet hi r di nt er esti nbot hcapi t al andear ni ngs .I fJoeyi scr edi t edi nf ul l f ort heamountof hi si nvest ment ,t henewcapi t al oft hepar t ner shi pwoul dbe: a. P240, 000. b. P300, 000. c. P360, 000. d. P420, 000. [ 43] . Moonbi t sPar t ner shi phadaneti ncomeofP8, 000f ort hemont hendedSept ember 30,201 1 .Sunshi nepur chasedani nt er esti nMoonbi t sPar t ner shi pofLi zandDi ckbypayi ng Li zP32, 000f orhal fofhercapi t al andhal fofher50% pr of i t shar i ngi nt er estonOct ober1 , 201 1 .Att hi st i me,Li z’ scapi t al bal ancewasP24, 000andDi ck’ scapi t al wasP56, 000. Sunshi neshoul dr ecei vecapi t al cr edi tequal t o: a. P1 2, 000 b. P1 6, 000 c. P20, 000 d. P26, 667 [ 44] . Sar ahi sadmi t t edi nt ot hef i r m ofJoy,AAandPi l ar .Theol dpar t ner sagr eedt osel l t oSar ahonef our t hoft hei rr espect i veequi t i esandpr of i tshar e.Sar ahpai dat ot al pr i ceof P1 , 000, 000.Bef or eSar ah’ sadmi ssi on,Joy,AAandPi l arhavecapi t al bal ancesof P2, 000, 000,P1 , 000, 000andP500, 000andt heys har epr of i t satt her at i oof6: 3: 1 . Par t ner shi passet sar ef ai r l yst at edandi mpl i edgoodwi l l i st ober ecogni zedpr i ort oSar ah’ s admi ssi on. Thenewcapi t al oft hepar t ner shi pi s: a.P3. 5M b.P4M c.P5M d.P4. 5M Quest i ons45&46ar ebasedont hef ol l owi ngi nf or mat i on: Mi t z,Mar candMer tar epar t ner sshar i ngpr of i ti na5: 3: 2r at i o,andwi t hcapi t al bal ancesof P95, 000,P80, 000,andP60, 000,r espect i vel y,onDecember31 ,201 1 .Thepar t ner sdeci ded t oadmi tVi nceasanewpar t neronJanuar y1 ,201 1 .Vi ncewi l l cont r i but ecashofP80, 000t o t hepar t ner shi pandal sopayP1 5, 000f or1 5% ofMar c’ sshar e.Vi ncei st ohavea20% shar e i npr of i t s.Af t ert headmi ssi onofVi nce,t het ot al capi t al wi l l beP330, 000andVi nce’ scapi t al wi l l beP70, 000. [ 45] . Upont headmi ss i onofVi nce,t het ot al amountof“ goodwi l l ”f ort heol dpar t ner s woul dbe: a. P 7, 000 b. P1 5, 000 c. P22, 000 d. P37, 000 [ 46] . Af t ert headmi ss i onofVi nce,Mar c’ scapi t al bal ancewoul dbe: a. P72, 600 b. P74, 600 c. P79, 1 00 d. P81 , 1 00 [ 47] . Theadmi ssi onofanewpar t nert oa20% i nt er estf orani nvest mentofP1 8, 000, wi t hat ot al agr eedcapi t al ofP75, 000,wi l l r esul ti n: a. Goodwi l l t ot heol dpar t ner s . b. Goodwi l l t ot henewpar t ner . c. Bonust ot heol dpar t ner s . d. Bonust ot henewpar t ner . [ 48] . Bl ackandWhi t ear epar t ner swhohavecapi t al bal ancesofP600, 000and P480, 000,andshar i ngpr of i t si nt her at i oof3: 2.Bl uei sadmi t t edasapar t neruponi nvest i ng P220, 000f ora25% i nt er esti nt hef i r m,andpr of i t sar et obeshar edequal l y.Gi vent he choi cebet weengoodwi l l andbonusmet hods ,Bl uewoul d: a. Pr ef erbonusmet hodduet oBl ue’ sgai nofP1 05, 000 b. Pr ef erbonusmet hodduet oBl ue’ sgai nofP1 40, 000. c. Pr ef ergoodwi l l met hodduet oBl ue’ sgai nofP1 40, 000. d. Bei ndi f f er entf orgoodwi l l andbonusmet hodsar et hesame. Quest i ons49and50ar ebasedont hef ol l owi ngi nf or mat i on: Ter r yandTi mmyent er edi nt oapar t ner shi ponMay31 ,201 1 ,cont r i but i ngcashofP48, 000 andP32, 000,r espect i vel y,andagr eei ngt odi vi deear ni ngsi nt her at i ooft hei ri ni t i al i nvest ment saf t eral l owi ngannual sal ar yal l owanceofP1 2, 000each.OnDecember31 , 201 1 ,t hei ncomesummar yaccounthadacr edi tbal anceofP34, 000,whi l edr awi ng account ss howeddebi tbal ancesofP1 4, 000f orTer r yandP1 0, 000f orTi mmy. Att hebegi nni ngoft henextyear ,Tommywasadmi t t edi nt ot hef i r m asanewpar t nerwi t ha 331 / 3% i nt er estf oracapi t al cr edi tequal t ohi scas hi nvest mentofP60, 000.Ter r yand Ti mmyt henef f ect edapr i vat ecashset t l ementbet weent hemsel vesi nor dert omaket he capi t al bal ancesconf or mt oanewpr of i t shar i ngr at i oof4: 2: 3,r espect i vel y,wi t hsal ar y al l owancesscr apped. [ 49] . Howmuchwast heamountofgoodwi l l ,i fany,t hatwasr ecogni zedi nconnect i on wi t ht headmi ssi onoft henewpar t ner ? a. P20, 000 b. P24, 000 c. P30, 000 d. P36, 000 [ 50] . Howmuchwast heamountoft hepr i vat ecashset t l ementef f ect edbet weent he ol dpar t ner s? a. P5, 000 c.P1 2, 000 b. P9, 000 d.P1 5, 000 Par t ner shi pDi ssol ut i on–Ret i r ementofPar t ner [ 51 ] . WhenNenar et i r edf r om t hepar t ner shi pofNena,Ni na,andNona,t hef i nal set t l ementofNena’ si nt er estexceededhercapi t al bal ance.Undert hebonusmet hod,t he excessi s: a. Recor dedasgoodwi l l . b. Recor dedasanexpense. c. Ofnoef f ectt ot hecapi t al account sofNi naandNona. d. Deduct edf r om t hecapi t al accountbal ancesofNi naandNona. [ 52] . Luz,Vi ,andMi ndaar epar t ner swi t hcapi t al bal ances,asofDecember31 ,201 1 ,of P300, 000,P300, 000andP200, 000,r espect i vel y,andwhoshar epr of i t sandl ossesequal l y. Mi ndawi shest owi t hdr aw,andi ti sagr eedt hatshei st ot akecer t ai nf ur ni t ur ei t ems ,wi t h secondhandval ueofP50, 000andanot ef ort hebal anceofheri nt er est .Thef ur ni t ur e i t emsar ecar r i edi nt hebooksatP65, 000;br andnew,however ,t heywoul dcostP80, 000. t heval ueoft henot et hatMi ndawoul dgeti s: a. P1 20, 000. c.P1 45, 000 b. P1 35, 000. d.P1 50, 000 [ 53] . Juan,Pedr o,andPabl oar epar t ner swhoshar epr of i t sandl ossesi na5: 3: 2r at i o and,onJanuar y1 ,201 1 ,havecapi t al bal ancesofP90, 000,P1 60, 000,andP200, 000, r espect i vel y.Pabl owi t hdr ewf r om t hepar t ner shi ponJul y1 ,201 1andt hepar t ner sagr eed t hat ,asoft hi sdat e,cer t ai ni nvent or yi t emswoul dhavet ober eval uedatP70, 000f r om t hei r r ecor dedcostofP50, 000.Fort hesi xmont hper i odendi ngJune30,201 1 ,t hepar t ner shi p r eal i zedaneti ncomeofP1 30, 000.Thepar t ner sdeci dedt hatPabl oshoul dbepai d P245, 000f orhi si nt er estandt her emai ni ngpar t ner s ’ capi t al account sshoul dbeadj ust ed f oranygoodwi l l r esul t i ngf r om t heset t l ement .Thepaymentt oPabl oi ncl udedgoodwi l l of : a. P1 5, 000. b. P25, 000. c. P42, 500. d. P50, 000. [ 54] . Paco,Qui n,andRomyar epar t ner swi t hcapi t al bal ancesonJune30,201 1of P300, 000,P300, 000andP200, 000,r espect i vel y,andshar i ngpr of i t sandl ossesequal l y. Romyi st or et i r e,andi ti sagr eedt hathei st ot akecer t ai nf ur ni t ur e( wi t hsecondhandval ue ofP50, 000)andanot ef orhi si nt er est .Thef ur ni t ur ei scar r i edi nt hebooksatP65, 000,but br andnewwoul dcostP80, 000.Romy’ sacqui si t i onoft hef ur ni t ur ewoul dr esul ti n: a. Reduct i oni ncapi t al ofP5, 000eachf orRaco,Qui nandRomy b. Reduct i oni ncapi t al ofP7, 500eachf orPacoandQui n c. Reduct i oni ncapi t al ofP1 5, 000f orRomy d. Reduct i oni ncapi t al ofP55, 000f orRomy. [ 55] . Luz,Vi ,andMi ndaar epar t ner swi t hcapi t al bal ances,asofDecember31 ,201 1 ,of P300, 000,P300, 000,andP200, 000,r espect i vel y,andwhoshar epr of i t sandl ossesequal l y. Mi ndawi shest owi t hdr aw,andi ti sagr eedt hatshei st ot akecer t ai nf ur ni t ur ei t ems ,wi t ha secondhandval ueofP50, 000,andanot ef ort hebal anceofheri nt er est .Thef ur ni t ur e i t emsar ecar r i edi nt hebooksatP65, 000;br andnew,however ,t heywoul dcostP80, 000. Theval ueoft henot et hatMi ndawoul dgeti s: a. P1 20, 000 c.P1 45, 000 b. P1 35, 000 d.P1 50, 000 [ 56] . Thecondensedbal ancesheetoft hepar t ner shi pofTi c,TacandToeas Netasset s Ti c,capi t al ( 50%) P400, 000 P200, 000 Tac,capi t al ( 30%) 1 20, 000 Toe,capi t al ( 20%) 80, 000 Tot al capi t al P400, 000 Asofsai ddat e,Ti cr et i r edf r om t hepar t ner shi p.Peragr eement ,Ti cwaspai dP225, 000f or hi si nt er estandt hegoodwi l l i mpl i edf r om t heset t l ementwasr ecor ded.Af t erTi c’ sr et i r ement , t hepar t ner shi p’ s“ netasset s”was : a. P1 75, 000 b. P200, 000 c. P225, 000 d. P250, 000 [ 57] . Juan,Pedr o,andPabl oar epar t ner swhoshar epr of i t sandl ossesi na5: 3: 2r at i o and,onJanuar y1 ,201 1 ,havecapi t al bal ancesofP90, 000,P1 60, 000,andP200, 000, r espect i vel y.Pabl owi t hdr ewf r om t hepar t ner shi ponJul y1 ,201 1andt hepar t ner sagr eed t hat ,asoft hi sdat e,cer t ai ni nvent or yi t emswoul dhavet ober eval uedatP70, 000f r om t hei r r ecor dedcostofP50, 000.Fort hesi xt hmont hper i odendi ngJune30,201 1 ,t hepar t ner shi p r eal i zedaneti ncomeofP1 30, 000.Thepar t ner sdeci dedt hatPabl oshoul dbepai d P1 45, 000f orhi si nt er estandt her emai ni ngpar t ner s ’ capi t al account sshoul dbeadj ust edf or anygoodwi l l r esul t i ngf r om t hes et t l ement .Thepaymentt oPabl oi ncl udedgoodwi l l of : a. P1 5, 000 c.P42, 500 b. P25, 000 d.P50, 000 [ 58] . Hugo,I van,andJuni ar epar t ner sshar i ngpr of i t sandl ossesi nt her espect i ver at i o of3: 3: 4.Juni i sgi venper mi ssi ont or et i r eef f ect i veMay31 ,201 1 ,andi twasagr eedt hat set t l ementi st obemadebyt her emai ni ngpar t ner smaki ngpayment sf r om t hei rper sonal f unds.Thecapi t al bal ancesot hi sdat ear e P30, 000,P25, 000andP45, 000f orHugo,I van, andJuni ,r espect i vel y.I fJuni r ecei vedP45, 000,howmuchdi dHugopayJuni ? a. P1 3, 500 b. P1 8, 000 c. P22, 500 d. P45, 000 [ 59] . Kar en,Kar mi ,andKat hyar epar t ner sshar i ngpr of i t si nt her espect i ver at i oof2: 3: 5. OnMay31 ,201 1 ,Kat hyopt edt or et i r e.Thecapi t al accountbal ances,att hi st i me,ar e P95, 000,P1 40, 000,andP1 35, 000,r espect i vel y.Assumi ngt hatKat hyi spai dP1 32, 000, Kar enwoul dbecr edi t ed: a. P 600 b. P 857 c. P1 , 200 d. P1 , 800 [ 60] . ANA,MAE,andRAEshar epar t ner shi ppr of i t sandl ossesi nt her at i oof2: 3: 5, r espect i vel y.OnOct ober31 ,201 1 ,RAEwasper mi t t edt owi t hdr awf r om t hepar t ner shi pat whi cht i met hei rcapi t al bal anceswer e: Ana,capi t al P25, 000 Mae,capi t al 40, 000 Rae,capi t al 35, 000 I fRAEi spai dP39, 000i nf ul l paymentofheri nt er est ,t hecapi t al ofANAi mmedi at el y af t erRAE’ swi t hdr awal woul dbe: a. P22, 600 b. P23, 000 c. P23, 400 d. P26, 600 I ncor por at i onofPar t ner shi p [ 61 ] . Thecondensedbal ancesheetoft hepar t ner shi pofKenSyandBenTyasof December31 ,201 1showedt hef ol l owi ng: Tot al asset s P200, 000 Tot al l i abi l i t i es 40, 000 KenSy,capi t al 80, 000 BenTy,capi t al 80, 000 Ont hi sdat e,t hepar t ner shi pwasdi ssol vedandi t snetasset swer et r ansf er r edt oanewl yf or medcor por at i on.Thef ai rval ueoft heasset swasP24, 000mor et hant hecar r yi ngval ue oft hef i r m’ sbooks.Eachoft hepar t ner swasi ssued1 0, 000shar esoft hecor por at i on’ sP1 parcommonst ock.I mmedi at el yaf t eref f ect i ngt het r ansf eroft henetasset s,andt he i ssuanceofst ock,t hecor por at i on’ saddi t i onal pai di ncapi t al accountwoul dbecr edi t edf or : a. P1 36, 000 b. P1 40, 000 c. P1 54, 000 d. P1 64, 000 [ 62] . Mac,Kuh,andNat ,par t ner sshar i ngpr of i t sandl ossesequal l y,deci dedt of or ma cor por at i on.Theyhavecapi t al bal ances ,r espect i vel y,of P1 00, 000,P1 00, 000,and P200, 000,andal l oft hei rasset sandl i abi l i t i eswi l l bet r ansf er r edt ot hecor por at i on.Thei rnet asset swi l l ber eval uedf r om P400, 000t oP550, 000,wi t ht hesubst ant i al r eval uat i onduet o l andwhi chwasor i gi nal l ycont r i but edbyNatatP1 00, 000.AtP1 0parval ue,t hepar t ner sar e t or ecei veshar esofst ockasf ol l ows : a. 1 0, 000,1 0, 000,and35, 000,r espect i vel y b. 1 2, 500,1 2, 500,and30, 000,r espect i vel y c. 1 5, 000,1 5, 000,and25, 000,r espect i vel y d. 1 8, 333,1 8, 333,and1 8, 334,r espect i vel y [ 63] . Par t ner sRobandRoy,whoshar eequal l yi npr of i t sandl oses,havet hef ol l owi ng bal ancesheetasofDecember31 ,201 1 : Cash P1 20, 000 A/ Payabl e P1 72, 000 A/ r ecei vabl e 1 00, 000 Accum.Dep’ n. M/ I nvent or y 1 40, 000 Rob,capi t al 1 40, 000 Equi pment 80, 000 Roy,capi t al 1 20, 000 P440, 000 Tot al equi t i es P440, 000 Tot al 8, 000 Theyagr eedt oi ncor por at et hei rpar t ner shi p,wi t ht henewcor por at i onabsor bi ngt he netasset saf t ert hef ol l owi ngadj ust ment s :pr ovi si onofal l owancef orbaddebt sofP1 0, 000; st at ementoft hei nvent or yati t scur r entf ai rval ueofP1 60, 000;and,r ecogni t i onoff ur t her depr eci at i onont heequi pmentofP3, 000.Thecor por at i on’ scapi t al st ocki st ohaveapar val ueofP1 00,andt hepar t ner sar et obei ssuedcor r espondi ngt ot al shar esequi val entt o t hei radj us t edcapi t al bal ances. Thet ot al parval ueoft heshar esofcapi t al st ockt hatwer ei ssuedt opar t ner sRobandRoy was: a. P260, 000 b. P267, 000 c. P273, 000 d. P280, 000 Par t ner shi pLi qui dat i on( Lumpsum &I nst al l ment ) [ 65] . Gar doandGor dof or medapar t ner shi ponJul y1 ,201 1t ooper at et wost or est obe managedbyeachoft hem.Theyi nvest edP30, 000andP20, 000andagr eedt oshar e ear ni ngs60% and40% r espect i vel y.Al l t hei rt r ansact i onswer ef orcash,andal l t hei r subsequentt r ansact i onswer ehandl edt hr ought hei rr espect i vebankaccount sas summar i zedbel ow: Gar do Cashr ecei pt s Cashdi sbur sement s Gor do P79, 1 00 P65, 245 62, 275 70, 695 OnOct ober31 ,201 1 ,al l r emai ni ngnoncashasset si nt het wost or eswer esol df orcashof P60, 000.Thepar t ner shi pwasdi ssol ved,andcashset t l ementwasef f ect ed.I nt he di st r i but i onoft heP60, 000cash,Gar dor ecei ved a. P24, 000 b. P26, 000 c. P34, 000 d. P36, 000 [ 66] . Thepar t nerAA,Bi da,Ci t a,andDi na,whoshar epr of i t sandl ossesi nt her espect i ve r at i oof3: 3: 2: 2,deci dedt ol i qui dat et hei rpar t ner shi p.Justpr i ort ol i qui dat i on,t heypr epar ed t hef ol l owi ngsummar ybal ancesheet : Cash Ot herasset s P 1 00, 000 Li abi l i t i es 1 , 800, 000 Bi da,l oan Di na,l oan P 750, 000 1 60, 000 50, 000 AA,capi t al 420, 000 Bi da,capi t al 21 5, 000 Tot al Ci t a,capi t al 205, 000 Di na,capi t al 1 00, 000 P1 , 900, 000 Tot al P1 , 900, 000 Thenoncashasset sr eal i zedP800, 000.I fal l t hepar t ner sar eper sonal l ysol vent , def i ci ency/ def i ci enci es ,r esul t i ngf r om t hel i qui dat i onpr ocess,wi l l r equi r eaddi t i onal cash f r om: a. Bi daatP85, 000andDi naatP1 00, 000 b. Bi daatP85, 000 c. Di naatP50, 000 d. Noneoft heabove [ 67] . Thebal ancesheetoft hepar t ner shi pofSal ve,Gi l da,andNor a,whoshar epr of i t s andl ossesi nt her espect i ver at i oof5: 3: 2,f ol l ows : Asset s Cash Ot herasset s Tot al Li abi l i t i esandCapi t al P 30, 000 320, 000 Li abi l i t i es P 50, 000 Sal ve,capi t al 80, 000 Gi l da,capi t al 1 1 5, 000 Nor a,capi t al 05, 000 P350, 000 P350, 000 Thepar t ner sagr eedt ol i qui dat et hepar t ner shi pbyi nst al l ment s.I mmedi at el yt her ewasa r eal i zat i onofP1 00, 000cashf r om sel l i ngot herasset swi t habookval ueofP1 50, 000.Oft he cashavai l abl e,t hepr i or i t yi st hepaymentoft hel i abi l i t i esandt hebal ancei st obedi st r i but ed t ot hepar t ner s. Howshoul dt her emai ni ngcashbedi st r i but ed. a. Sal ve,P50, 000;Gi l da,P30, 000;and,Nor a,P20, 000. b. Sal ve,P40, 000;Gi l da,P24, 000;and,Nor a,P1 6, 000. c. Sal ve,P0;Gi l da,P31 , 000;and,Nor a,P49, 000. d. Sal ve,P0;Gi l da,P48, 000;and,Nor a,P32, 000. Quest i ons68t hr ough70ar ebasedont hef ol l owi ngdat af r om t her ecor dsofABC Par t ner shi p: ABCPar t ner shi p Bal anceSheet December31 ,201 0 Ass et s Cash P 2, 000 Ot herNoncashAsset s Tot al 28, 000 P30, 000 Li abi l i t i es&NetWor t h Li abi l i t i es P 5, 000 A,l oan 2, 500 A,capi t al 1 2, 500 B,capi t al 7, 000 C,capi t al 3, 000 Tot al P 30, 000 Pr of i tandl ossr at i oi s3: 2: 1f orA,B,andC,r espect i vel y.Theot hernoncashasset swer e r eal i zedasf ol l ows: Dat e CashRecei ved BookVal ue Jan.,201 1 P 6, 000 P 9, 000 Feb. ,201 1 3, 500 7, 700 Mar . ,201 1 1 2, 500 1 1 , 300 Cashi sdi st r i but edasasset sar er eal i zed. [ 68] . Thet ot al l osst oAi s a. P3, 000 b. P2, 000 c. P1 , 000 d. P0 [ 69] . Thet ot al cashr ecei vedbyBi s: a. P2, 200 b. P0 c. P5, 000 d. P1 , 500 [ 70] . Cashr ecei vedbyCi nJanuar yi s: a. P 200 b. P1 , 000 c. P 500 d. P0 [ 71 ] . X,YandZhavecapi t al bal ancesofP40, 000,P50, 000,andP1 8, 000andapr of i t shar i ngr at i oof4: 2: 1 ,r espect i vel y.I fXr ecei vedP8, 000uponl i qui dat i onoft hepar t ner shi p, t het ot al amountr ecei vedbyal l t hepar t ner swas : a. P1 08, 000 b. P 56, 000 c. P 52, 000 d. P 24, 000 [ 72] . Ass umet hesamef act sabove,exceptt hatXr ecei vedP26, 000asar esul toft he l i qui dat i on.Zr ecei ved,aspar toft hel i qui dat i on,t heamountof : a. P26, 000 b. P1 4, 500 c. P1 8, 000 d. P1 4, 000 [ 73] . SanchezandTanar epar t ner sshar i ngpr of i t sequal l yandwi t hcapi t al bal ances, r espect i vel y,ofP750, 000andP500, 000.Thef i r m owesTanP200, 000,asevi dencedbya pr omi ssor ynot e.Uponl i qui dat i on,cashofP300, 000becomesavai l abl ef ordi st r i but i ont o t hepar t ner s.I nt hef i nal cashdi st r i but i on,t her espect i veshar esofSanchezandTanwi l l be: a. P1 50, 000 andP1 50, 000 b. P1 75, 000andP1 25, 000 c. P200, 000andP1 00, 000 d. P275, 000andP 25, 000 [ 74] . Af t eroper at i ngf orf i veyear s ,t hepar t ner shi pofRemyandMar t i n,whoshar e pr of i t sandl osesequal l y,hadbal ancesasf ol l ows : Netasset s P1 30, 000 Remy,capi t al 85, 000 Mar t i n,capi t al 45, 000 I fl i qui dat i ont akespl aceatt hi st i meandt heasset sar er eal i zedatbookval ue,Remyand Mar t i nwoul dbeent i t l edt or ecei ve: a. P65, 000andP65, 000,r espect i vel y. b. P85, 000andP45, 000,r espect i vel y. c. P90, 000andP40, 000,r espect i vel y. d. P97, 500andP32, 500,r espect i vel y. [ 75] . Thecondensedbal ancesheetofAl ex,JayandJohn,asofMar ch31 ,201 1f ol l ows: Cash Ot herasset s P 28, 000 265, 000 Li abi l i t i es Al ex,capi t al Jay,capi t al John,capi t al Tot al asset s P293, 000 P 48, 000 95, 000 80, 000 70, 000 Tot al equi t i es P293, 000 Thei ncomeandl ossr at i oi s50: 25: 25,r espect i vel y.Thepar t ner svot edt odi ssol vet hei r par t ner shi pandl i qui dat ebysel l i ngt heot herasset si ni nst al l ment s.TheamountofP70, 000 wasr eal i zedt ot hef i r stcashsal eofot herasset swi t habookval ueofP1 50, 000.Af t er set t l ementwi t hcr edi t or sal l cashavai l abl ewasdi st r i but edt ot hepar t ner s.Howmuchwas r ecei vedbyJohni nt hecashdi st r i but i on? a. P30, 000 c.P21 , 250 b. P20, 000 d.P31 , 250 [ 76] . Jo,Lee,andVi ar epar t ner sshar i ngpr of i t s30%,20%,and50%,andwi t hcapi t al bal ancesofP350, 000,P250, 000,andP350, 000,r espect i vel y.Thepar t ner sagr eedt o di ssol vet hei rpar t ner shi pand,uponl i qui dat i on,al l oft hepar t ner shi p’ sass et sar esol dand suf f i ci entcashi sr eal i zedt opayal l cl ai msexceptonef orP50, 000.Vi i sper sonal l yi nsol vent , butt heot hert wopar t ner sar ecapabl eofmeet i nganyi ndebt ednessoft hef i r m.Oft he r emai ni ngcl ai m agai nstt hef i r m,Joi st oabsor b: a. P1 5, 000 b. P25, 000 c. P30, 000 d. P40, 000 [ 77] . OnOct ober31 ,201 1 ,I vy,I r ma,andI r ene,whoshar eear ni ngs5: 3: 2r espect i vel y, deci dedt ol i qui dat et hei rpar t ner shi patwhi cht i met hei rcondensedbal ancesheetwasas f ol l ows: Cash Ot herasset s Tot al asset s P 50, 000 Li abi l i t i es 250, 000 I vy,capi t al P300, 000 P 60, 000 80, 000 I r ma,capi t al 90, 000 I r ene,capi t al 70, 000 Tot al equi t i es P300, 000 I ft hef i r stcashsal eofasset sbookedatP1 50, 000r esul t edi nnetr eal i zat i onofP1 20, 000, t heamountt obedi st r i but edt oI r enewoul dbe: a. P1 5, 000 b. P44, 000 c. P51 , 000 d. P60, 000 [ l xxvi i i ] . Dan,El y,andFi l deci dedt odi ssol vet hei rpar t ner shi ponMay31 ,201 1 .Ont hi s dat e,t hei rcapi t al bal ancesandpr of i t shar i ngpercent swer easf ol l ows: Dan P50, 000 40% El y 60, 000 30% Fi l 20, 000 30% Theneti ncomef r om Januar y1t oMay31 ,201 1wasP44, 000.Al soonMay31 ,201 1 ,t he par t ner shi p’ scashandl i abi l i t i es,r espect i vel ywer eP40, 000andP90, 000.ForDant o r ecei veP55, 200i nf ul l set t l ementofhi si nt er esti nt hepar t ner shi p,howmuchmustbe r eal i zedf r om t hesal eoft hepar t ner shi p’ snoncashasset s? a. P1 77, 000 b. P1 87, 000 c. P1 90, 000 d. P1 93, 000 [ l xxi x] . Bach,Li zst ,andSt r auss ,shar i ngpr of i t sandl osses4: 4: 2,deci dedt ol i qui dat et hei r par t ner shi p.Justpr i ort ol i qui dat i on,t hepar t ner shi p’ scondensedbal ancesheetwasas f ol l ows: Cash P1 00, 000 Li abi l i t i es Ot herasset s Tot al 400, 000 Bach,l oan P1 40, 000 1 0, 000 Bach,capi t al 45, 000 Li zst ,capi t al 1 05, 000 St r auss ,capi t al 200, 000 P500, 000 Tot al P500, 000 Theot herasset swer esol df orP247, 500,andt hepar t ner sagr eedt omakeaddi t i onal cash cont r i but i onst oanswerf oranycapi t al def i ci ency.I dent i f yt hedef i ci entpar t ner ,andi ndi cat e hi saddi t i onal cashcont r i but i ont of i nal l yl i qui dat et hepar t ner shi p: a. Bach,P 6, 000 b. Bach,P1 6, 000 c. Li zst ,P30, 500 d. St r auss,P44, 000 [ l xxx] . Tom,Umi andVi cdeci dedt odi ssol vet hei rpar t ner shi ponMay31 ,201 1 .Ont hi s dat e,t hei rcapi t al bal anceswer easf ol l ows : Tom P50, 000 40% Umi 60, 000 30% Vi c 20, 000 30% Theneti ncomef r om Januar y1t oMay31 ,201 1wasP44, 000.Al soonMay31 ,201 1 ,t he par t ner shi p’ scashandl i abi l i t i es,r espect i vel ywer eP40, 000andP90, 000.Whatwast he bookval ueoft hepar t ner s hi p’ snoncashasset sonMay31 ,201 1 ? a. P1 80, 000 b. P1 90, 000 c. P220, 000 d. P224, 000 END- ANSWERS [ 1 ] . Let t er“ B”i st hecor r ectanswer . Thepr obl em i mpl i est hatt hecont r i but i onofEmi l i sal r eadyadequat et oent i t l ehi mt oa60% shar ei nt het ot alagr eedcapi t aloft hepar t ner shi p.Hence,t het ot alagr eedcapi t al i zat i on shal l bebasedonhi scont r i but i onofP300, 000orP500, 000( P300, 000÷60%) .Theagr eed capi t al ofPear l i s40% ofP500, 000orP200, 000andhercashcont r i but i onshal l beequal t o t hedi f f er encebet weent hi samount( P200, 000)andt henetf ai rval ueoft henoncashasset s shei nvest ed.Thenetf ai rval ueoft heot herasset scont r i but edbyPear l i sequal t oP1 20, 000, ( P70, 000 + P90, 000 – P40, 000) .Ther ef or e,hercash cont r i but i on shoul d be equalt o P80, 000( P200, 000–P1 20, 000) . [ 2] . Let t er“ D”i st hecor r ectanswer . Undert he goodwi l lmet hod,t he t ot alagr eed capi t alshoul d be mor et han t he t ot al cont r i but edcapi t al .Tot al agr eedcapi t al wi l l bemor et hant het ot al cont r i but edcapi t al onl yi f t hecont r i but i onofGr eeni susedast hebasi soft het ot alagr eedcapi t al i zat i on.Si ncet he f ai rval ueoft hecont r i but i onofGr eenamount st oP60, 000,t hent het ot alagr eedcapi t al mustbeP1 20, 000 ( P60, 000 ¸50%) . Thei ni t i alcapi t alofRed t her ef or eamount ed t o P60, 000or50% ofP1 20, 000asagr eedbyt hepar t ner s. [ 3] . Let t er“ B”i st hecor r ectanswer . Theamountt ober ecor dedascapi t aloft hepar t ner sshoul dbebasedont hef ai rval ueof t henetasset( t ot alasset s–t ot all i abi l i t i es)cont r i but edbyeachoft hem.Hence,t hecapi t al bal ancesf orPi r ant eandWi l sonshoul dbeP70, 000andP1 50, 000,r espect i vel y. These amount sar ecomput edasf ol l ows: Pi r ant e Wi l son Asset scont r i but ed: Cash P40, 000 P 60, 000 I nvent or y - 30, 000 Bui l di ng - 80, 000 Fur ni t ur eandEqui pment Tot al P70, 000 Lessmor t gageassumed Netasset scont r i but ed [ 4] . 30, 000 - P1 70, 000 - 20, 000 P70, 000 P1 50, 000 Let t er“ B”i st hecor r ectanswer . Undert hebonusmet hod,apor t i onoft hecapi t alofonepar t neri st r ansf er r edt oanot her par t ner .I nt hi scase,t het ot alagr eedcapi t ali sassumedt obeequalt ot het ot alcont r i but ed capi t al ,P276, 000 ( P1 50, 000 + P1 26, 000) ,and eachpar t nershal lbecr edi t ed onehal f ( accor di ngt oagr eement )orP1 38, 000.Thepar t nerwhocont r i but edmor et hanhi sagr eed capi t alcr edi ti st heonewhogaveabonuswhi l et heonewhocont r i but edcapi t all esst han hi sagr eed capi t alcr edi ti st he one who r ecei ved i t . Bel en cont r i but ed P1 26, 000 but r ecei vedP1 38, 000( 50% xP276, 000)capi t alcr edi t ,hence,her ecei vedbonusequalt o P1 2, 000 ( P1 38, 000P1 26, 000)f r om AA who cont r i but ed P1 50, 000 butr ecei ved onl y P1 38, 000capi t al cr edi t . [ 5] . Let t er“ B”i st hecor r ectanswer . Thepar t ner s’capi t albal ancesuponf or mat i onwoul dbeP1 00, 000,P1 0, 000,and P1 00, 000,r espect i vel y. [ 6] . Let t er“ C”i st hecor r ectanswer . Kat hy’ scapi t alaccountshoul dbecr edi t edf ort he50% oft het ot alagr eedcapi t alwhi chi s assumedt obeequalt ot heact ualcapi t alcont r i but edbyt hepar t ner sorP1 84, 000[ 50% x ( P200, 000+P1 68, 000) ] [ 7] . Let t er“ C”i st hecor r ectanswer . Thepar t nerwi t ht hebi ggestcapi t al accountbal anceasofMay31 ,201 1i sCi p,comput edas f ol l ows: Al l en Cash P50, 000 Noncashasset Bel en Cenen P - P- - 80, 000 Mor t gage - ( 35, 000) Capi t al accountbal ances P50, 000 55, 000 - P45, 000 P55, 000 Eachpar t nerval ueshi scont r i but i onati sf ai rval ue,r educedbyt heamountofany l i abi l i t yassumedbyt hepar t ner shi p. [ 8] . Let t er“ D”i st hecor r ectanswer . Undert he bonusmet hod,goodwi l li snotr ecogni zed;t hus,t her e woul d be no uni dent i f i abl eassett ober ecor ded. [ 9] . Let t er“ C”i st hecor r ectanswer . Theamountofcashcont r i but edbyCar l a,i fi ni t i albal ancesar et oconf or mt ot he pr of i t shar i ngr at i oof2: 3,r espect i vel ywasP40, 000,comput edasf ol l ows: Capi t al cont r i but edbyCl ar a: Mer chandi seatf ai rval ue P25, 000 Del i ver yt r uckatf ai rval ue 50, 000 Mor t gagenot epayabl eassumed (1 5, 000) Cl ar a’ scont r i but i on Di vi dedbypr of i tshar eofCl ar a P60, 000 3/ 5 Tot al agr eedcapi t al P1 00, 000 Mul t i pl i edbyCar l a’ spr of i tshar er at i o 2/ 5 Car l a’ scashcont r i but i on [ 1 0] . P40, 000 Let t er“ B”i st hecor r ectanswer . Uponf or mat i on,t henetasset soft hepar t ner shi pi sequalt ot het ot alf ai rval ueoft he asset scont r i but edl essanyamountofl i abi l i t i esassumedbyt hepar t ner shi p,hencet henet asset soft hepar t ner shi pi sequal t oP,comput edasf ol l ows: Asset scont r i but edby: AA P1 00, 000 BB 1 0, 000 CC 1 00, 000 Tot al P21 0, 000 Lessl i abi l i t i esassumed 1 0, 000 Netasset scont r i but edbyt hepar t ner s [ 1 1 ] . P200, 000 Let t er“ B”i st hecor r ectanswer . Thecapi t albal anceofMeland Gar r iassumi ng t heyagr eet o shar et hei rcapi t al equal l ywoul dbeP72, 500,comput edasf ol l ows: Unadj ust edcapi t al ( P78, 500+P70, 000) I nvent or ywr i t eup P1 48, 500 3, 000 Al l ow.f orbaddebt s( P1 , 000+P1 , 500) I ncr easei naccount spayabl e Adj ust edcapi t al ( 4, 000) P1 45, 000 Di vi deby Capi t al bal anceofeachpar t ner [ 1 2] . Let t er“ C”i st hecor r ectanswer . 2 P72, 500 (2, 500) I fChona i s al l owed goodwi l lcr edi tequalt o 20% ofheri ni t i alcapi t al ,Char o’ s cash cont r i but i onwasP25, 000,comput edasf ol l ows: Chona’ si ni t i al capi t al ( P60, 000/ 80%) P 75, 000 Di vi dedbyChona’ scapi t al shar e ¾ or75% Tot al agr eedcapi t al oft hepar t ner s P1 00, 000 Mul t i pl i edbyChona’ scapi t al shar e ¼ or25% Char o’ scashcont r i but i on P 25, 000 Chona’ si ni t i alcapi t ali sequalt ohernetasset scont r i but i onwhi chi s80% pl ushergoodwi l l cr edi tof20%.Char o’ scashcont r i but i oni sequalt oonef our t h( ¼)oft ot alpar t ner shi p capi t al or1 / 3ofChona’ scapi t al . [ 1 3] . Let t er“ B”i st hecor r ectanswer . The capi t albal ances oft he par t ner s upon f or mat i on ar e P1 80, 000,P1 92, 000,and P204, 000,r espect i vel y,comput edasf ol l ows: I nvest ment s: Cash Fl or es P1 20, 000 Equi pment Per al t a Jose P1 92, 000 P 60, 000 60, 000 Tr uck 1 44, 000 Capi t al bal ances [ 1 4] . P1 80, 000 P1 92, 000 P204, 000 Let t er“ B”i st hecor r ectanswer . EJ’ sadj ust edcapi t al bal ancei sP80, 000comput edasf ol l ows: EJ’ scapi t al bef or eadj ust ment( gi ven) P78, 500 Add( deduct )adj ust mentf or : Al l owancef ordoubt f ul account s P( 1 , 500) I nvent or yi ncr ease 3, 000 Netadj ust ment EJ’ sadj ust edcapi t al bal ance [ 1 5] . 1 , 500 P80, 000 Let t er“ A”i st hecor r ectanswer . Noncashasset scont r i but edt oanent i t yshoul dber ecor dedatf ai rmar ketval ueatt hedat e ofcont r i but i on.Thecr eat i onofanewent i t ycr eat esanewaccount abi l i t yf ort heseasset s. [ 1 6] . Let t er“ C”i st hecor r ectanswer . Thecapi t alaccountofPul aandPut ii mmedi at el yaf t ert hef or mat i onoft hepar t ner shi p woul dhavebal ancesequalt oP287, 070andP1 23, 030,r espect i vel y.Theseamount swer e comput edasf ol l ows: Capi t al ofPul abef or eadj ust ment s P300, 000 Add( deduct )adj ust ment s: I ncr easei ndepr eci at i on Reduct i oni npr epai dexpenses Adj ust edcapi t al ofPul a Addcashcont r i but edbyPut i Tot al agr eedcapi t al ( 7, 500) ( 2, 400) P290, 1 00 1 20, 000 P41 0, 1 00 Shar eofPul a( 70% xP41 0, 1 00) P287, 070 Shar eofPut i ( 30% xP41 0, 1 00) P1 23, 030 [ 1 7] . Let t er“ D”i st hecor r ectanswer . Thecapi t alcont r i but edbyFebi sP280, 000( P70, 000+P75, 000+P225, 000–P90, 000) , t het ot alagr eedcapi t ali st her ef or eequalt oP400, 000( P280, 000/ 70%) ,30% ofwhi chor P1 20, 000 shoul d be cr edi t ed t o Jhan. Si nce hi si ni t i alcapi t alcont r i but i on i sP65, 000 ( P30, 000+P25, 000+1 0, 000)onl y,heneedst oi nvestP55, 000mor e( P1 20, 000P65, 000) . [ 1 8] . Let t er“ A”i st hecor r ectanswer . Par t ner s’capi t albal ancesuponf or mat i onar eBel ,P75, 000;Joy,P80, 000,andFr anco, P85, 000,r espect i vel y,comput edasf ol l ows: Bel Joy Fr anco Cash P50, 000 P80, 000 P25, 000 Noncashasset s 25, 000 -----60, 000 I ni t i al capi t al bal ances P75, 000 P80, 000 P85, 000 [ 1 9] . Let t er“ B”i st hecor r ectanswer . I fJi menezi st oi nvestcashf ora2/ 5i nt er esti nt hepar t ner shi p,i tmeanst hatt headj ust ed capi t alofMar ki s3/ 5oft het ot alagr eedcapi t al .Theadj ust edcapi t alofMar ki scomput ed asf ol l ows: Capi t al bef or eadj ust ment s( Subcomput at i ona) Addnetadj ust ment s( Subcomput at i onb) Adj ust edCapi t al ofMar k 21 , 000 P285, 000 Subcomput at i ona: Cash P264, 000 P26, 000 Account sr ecei vabl e I nvent or y 1 20, 000 1 80, 000 Account spayabl e ( 62, 000) Unadj ust edCapi t al ofMar k P264, 000 Subcomput at i onb: Al l owancef ordoubt f ul account s[ 3% xP1 20, 000] ( P3, 600) I ncr easei nmer chandi sei nvent or y 25, 000 Recogni t i onofPr epai dexpens es 3, 600 Recor di ngofaccr uedexpenses ( 4, 000) Netadj ust mentt ocapi t al ofMar k P21 , 000 Tot alagr eed capi t ali st her ef or e equalt o P475, 000 ( P285, 000 ÷ 3/ 5) ,2/ 5 oft hi sor P1 90, 000( P475, 000x2/ 5)bel ongst oJi menezwhi chheagr eedt opr ovi def ori ncash. [ 20] . Let t er“ D”i st hecor r ectanswer . Thet ot al asset soft hepar t ner shi pi sequal t oP74, 000,comput edasf ol l ows: Cash( P2, 500+P20, 000) P22, 500 Account sr ecei vabl e( P1 0, 000–P500) 9, 500 Mer chandi seI nvent or y: ( P1 5, 000–P3, 000+P1 0, 000) Fi xt ur es( f ai rmar ketval ue) Tot al asset s 21 ] . 22, 000 20, 000 P74, 000 Let t er“ B”i st hecor r ectanswer . Theadj ust edcapi t al ofSi l vanoi sP1 1 6, 250,comput edasf ol l ows: Tot al Asset s( comput at i ona) Lessaccount spayabl e( gi ven) Capi t al bef or eadj ust ment s P1 32, 000 8, 000 P1 24, 000 Lessnetadj ust ment s( comput at i onb) 7, 750 Adj ust edcapi t al ofSi l vano P1 1 6, 250 Comput at i ona: Cash P 30, 000 Account sr ecei vabl e 25, 000 I nvent or y 45, 000 Fur ni t ur e 32, 000 Tot al asset s P1 32, 000 Comput at i onb: Pr ovi si onf orbaddebt s( 3% xP25, 000) P 750 Reduct i oni nt heval ueoff ur ni t ur e: ( P32, 000–27, 000) 5, 000 Decr easei nt heval ueofi nvent or y: ( P5, 000–3, 000) Netadj ust ment s [ 22] . 2, 000 P7, 750 Let t er“ D”i st hecor r ectanswer . Thet ot al asset soft henewpar t ner shi pi sequal t oP1 44, 250,comput edasf ol l ows: Adj ust edcapi t al ofSi l vano Addaccount spayabl e Tot al adj ust edasset s Addcashi nvest mentofPegasus Tot al asset soft henewpar t ner shi p [ 23] . P1 1 6, 250 8, 000 P1 24, 250 20, 000 P1 44, 250 Let t er“ A”i st hecor r ectanswer . Becausegai ni st oi nvestcashasi def r om P50, 000wor t hofmer chandi sei ti sassumed t hat t headj ust edcapi t al ofPai ni sequal t ohi s2/ 3capi t al shar e(1l ess1 / 3agr eedshar eofGai n) . Hence,t ocomput et het ot alagr eedcapi t aloft hepar t ner shi paswel last hecasht obe i nvest edbyGai n,Pai n’ sadj ust edcapi t alshoul dbecomput edf i r st .Theadj ust edcapi t alof Pai ni sequal t oP1 65, 900,comput edasf ol l ows: Capi t al bef or eadj ust ment s( gi ven) P1 58, 400 Addnetadj ust ment( comput at i ona) Adj ust edcapi t al ofPai n 7, 500 P1 65, 900 Comput at i ona: I ncr easei ncapi t al duet or ec.ofpr epai dexp. Decr easei ncapi t al duet or ec.ofaccr ual Decr easei ncapi t al duet opr ovi si onsf orbaddebt s Netadj ust mentt ocapi t al ofPai n P1 7, 500 ( 5, 000) ( 5, 000) P 7, 500 Thet ot alagr eedcapi t aloft hepar t ner shi pi sP248, 850( P1 65, 900÷2/ 3) ,andt hecapi t al shar eofgai ni sP82, 950( P248, 850x1 / 3) ,hence,t hecasht obei nvest edbyGai ni sequal t oP32, 950( P82, 950–P50, 000) . [ 24] . Let t er“ A”i st hecor r ectanswer . Noncashasset scont r i but edt ot hepar t ner shi pshoul dber ecor dedatf ai rmar ketval ueat t hedat eofcont r i but i on.Thef actt hatt hecomput erwassol df orP55, 000i mmedi at el yaf t er t hef or mat i onoft hepar t ner shi pi ndi cat est hati ti si t sf ai rmar ketval ueont hedat eoft he f or mat i onoft hepar t ner shi p. [ 25] . Let t er“ B”i st hecor r ectanswer . Theamountofasset st obecont r i but edbyVi ol ett ohaveaonet hi r di nt er esti ncapi t aland pr of i tshoul dbeequalt oonehal foft hecombi nedcont r i but i onofYel l ow andOr ange.The t ot alcont r i but i onofYel l ow andOr angei sP1 20, 000( P40, 000+P80, 000) ,t her ef or e,t o haveonet hi r di nt er esti nt hepar t ner shi p,Vi ol etshoul dcont r i but eP60, 000oronet hi r dofa t ot al capi t al i zat i onofP1 80, 000( P1 20, 000+P60, 000) . [ 26] . Let t er“ B”i st hecor r ectanswer . Thecapi t al bal anceofeachpar t nershal l beequal t oP,comput edasf ol l ows: Wi l der Capi t al bef or eadj ust ment s Nest P78, 500 P70, 000 Add( deduct )adj ust ment s: I ncr easei ni nvent or y 3, 000 Recei vabl eswr i t t enof f ( 1 , 000) ( 1 , 500) Accr uedexpensesr ecor ded ( 4, 000) Adj ust edcapi t al bal ance P76, 500 Tot al capi t al( P76, 500+P68, 500) Di vi dedby Capi t al bal anceofeachpar t ner [ 27] . P68, 500 P1 45, 000 2 P 72, 500 Let t er“ C”i st hecor r ectanswer . Theamountofcasht obecont r i but edbyCl ar ai sequi val entt o2/ 5oft het ot al agr eedcapi t al oft hepar t ner shi pwhi chi st obebasedont hecont r i but i onofMar i a.Thecapi t al cont r i but ed byMar i ai sP60, 000( P25, 000+P50, 000–P1 5, 000) ,t het ot alagr eedcapi t ali sP1 00, 000 ( P60, 000÷3/ 5) ,henceCl ar ashoul dcont r i but ecashequal t oP40, 000( 2/ 5xP1 00, 000) . [ 28] . Let t er“ A”i st hecor r ectanswer . I fAgai nvest sP20, 000f ora20% i nt er est ,t hent ot alpar t ner shi pcapi t almustbebasedon Aga’ si nvest mentorP1 00, 000( P20, 000/ 20%)andt hecapi t alt obecr edi t edt oMat ai s P80, 000( P1 00, 000–P20, 000) .I fMat acont r i but esanequi pmentwor t hP50, 000,t henhe shoul di nvestaddi t i onal cashamount i ngt oP30, 000( P80, 000–P50, 000) . [ 29] . Let t er“ B”i st hecor r ectanswer . Thecashi nvest edbyt hepar t ner si sequalt oP20, 000cont r i but edbyAgaandt heP30, 000 i nvest edbyMat aorat ot al ofP50, 000. [ 30] . Let t er“ A”i st hecor r ectanswer . Thecapi t alofAlandMacmodshal lbeequalt oP,andP,r espect i vel y.Theseamount sar e comput edasf ol l ows: Al Cash Macmod P1 20, 000 Of f i ceequi pment P 80, 000 P 200, 000 84, 000 Land 84, 000 1 , 000, 000 Bui l di ng 1 , 000, 000 600, 000 Mor t gageonbui l di ng Capi t al [ 31 ] . Tot al 600, 000 ( 400, 000) P204, 000 P1 , 280, 000 (400, 000) P1 , 484, 000 Let t er“ B”i st hecor r ectanswer . Theaver agecapi t al bal anceofMr .Boom dur i ng201 1 ,i sP8, 800,comput edasf ol l ows: Januar y1I nvest ment : P8, 000x1 2/ 1 2 P8, 000 Apr i l 1I nvest ment 1 , 600 x 9/ 1 2 1 , 200 June 1I nvest ment 1 , 600x 7/ 1 2 933 Sept . 1I nvest ment ( 4, 000)x 4/ 1 2 ( 1 , 333) Mr .Boom’ saver agecapi t al bal ancedur i ng201 1 [ 32] . P 8, 800 Let t er“ B”i st hecor r ectanswer . Theneti ncomeoft hepar t ner shi pf or201 1wasP1 20, 000,comput edasf ol l ows: Wi t hdr awal P1 04, 000 Addi t i onal i nvest ment (20, 000) Netdecr easei ncapi t al (48, 000) Dul ce’ sshar ei nneti ncome Di vi debyDul ce’ sP&Lr at i o Par t ner shi p’ sneti ncomef ort heyear201 1 [ 33] . P36, 000 30% P1 20, 000 Let t er“ B”i st hecor r ectanswer . Pl aci do’ s capi t alaccountbal ance woul d decr ease i nt he amountofP22, 000, comput edasf ol l ows: Tot al Pl aci do I nt er est s: P440, 000x1 0% ;P80, 000x1 0% P44, 000 P 8, 000 Sal ar i es 1 00, 000 40, 000 Bal ance( def i ci ency) ,equal l y Netpr of i t( l oss) [ 34] . (21 0, 000) ( 70, 000) P( 66, 000) P( 22, 000) Let t er“ D”i st hecor r ectanswer . Zeep’ sshar ei nneti ncomef or201 1i sP600,comput edasf ol l ows: Beep Zeep Tot al Sal ar y P1 6, 000 P7, 200 P23, 200 1 0% i nt er estonbeg.cap. 1 , 600 2, 000 3, 600 Remai nder :equal l y ( 8, 600) ( 8, 600) ( 1 7, 200) Neti ncome P 9, 000 P 600 P 9, 600 [ 35] . Let t er“ B”i st hecor r ectanswer . The amountofear ni ngst hatshoul d be cr edi t ed t o each par t ner ’ saccountar e P43, 000andP37, 000,f orRedandWhi t e,r espect i vel y,comput edasf ol l ows: Red Sal ar yal l owances Whi t e P55, 000 Tot al P45, 000 P1 00, 000 Lossaf t eral l owances( 60: 40) (1 2, 000) (8, 000) (20, 000) Ear ni ngscr edi t edt opar t ner s [ 36] . P43, 000 P37, 000 P 80, 000 Let t er“ B”i st hecor r ectanswer . Thebonust oPer ezi n201 1i sP1 8, 000,comput edasf ol l ows: Netpr of i taf t ersal ar y,i nt er est ,andbonus P 32, 000 Sal ar yofPer ez( P5, 000x1 2) 60, 000 I nt er estonst ar t i ngcapi t al s( P200, 000x5%) 1 0, 000 Netpr of i tbef or esal ar yandi nt er est , butbef or ebonus P1 02, 000 Di vi deby Netpr of i tbef or esal ar y,i nt er est ,andbonus BonusofPer ezi n201 1( P1 20, 000x1 5%) [ 37] . 85% P1 20, 000 P1 8, 000 Let t er“ D”i st hecor r ectanswer . TheP1 76, 000oper at i ngi ncomei sdi vi dedasHer m,P53, 1 80;Mar c,P62, 060;andAl ex, P60, 760,r espect i vel y,comput edasf ol l ows: Her m:P1 50, 000x1 2/ 1 2 P1 50, 000 30, 000x 6/ 1 2 1 5, 000 ( 1 0, 000)x3/ 1 2 Aver ageCapi t al ( 2, 500) P1 62, 500 Mar c:P200, 000x1 2/ 1 2 P200, 000 20, 000x5/ 1 2 8, 333 ( 1 0, 000)x3/ 1 2 ( 2, 500) Aver agecapi t al P205, 833 Al ex:P250, 000x1 2/ 1 2 P250, 000 ( 30, 000)x2/ 1 2 ( 5, 500) Aver agecapi t al P245, 000 Her m Mar c Al ex Tot al Sal ar yal l owances P24, 000 P1 8, 000 P1 2, 000 P54, 000 1 2% i nt er estonaver agecapi t al 1 9, 500 24, 700 29, 400 73, 600 Remai nder ,2: 4: 4 9, 680 1 9, 360 1 9, 360 48, 400 Di vi s i onofope.i nc. P53, 1 80 62, 060 P60, 670 P1 76, 000 [ 38] . Let t er“ D”i st hecor r ectanswer . Thepar t ner s’capi t albal ancesonDecember31 ,201 1ar eHer m,P223, 1 80;Mar c, P272, 060;andAl ex,P280, 760,r espect i vel y,comput edasf ol l ows: Her m Mar c Al ex Capi t al bal ances,Jan.1 P1 50, 000 P200, 000 P250, 000 Addi t i onal cont r i but i ons 30, 000 20, 000 Dr awi ngs ( 1 0, 000) ( 1 0, 000) ( 30, 000) Shar ei noper at i ngi ncome( 6) 53, 1 80 62, 060 60, 760 Capi t al bal ances,Dec.31 ,201 1 P223, 1 80 P272, 060 P280, 760 [ 39] . Let t er“ B”i st hecor r ectanswer . I ncaseofapr of i t ,Bi ng’ sshar ewi l lbe20% pl us40% oft her emai ni ng80%,orat ot alof 52%;i ncaseofal oss,Bi ng’ sshar ewi l l onl ybe40%. [ 40] . Let t er“ B”i st hecor r ectanswer . ThebonusofMi chel l ef ort heyear201 1i sP48, 000,comput edasf ol l ows: Mi chel l e’ sbonus( P240, 000¸1 25%)x25% [ 41 ] . P48, 000 Let t er“ C”i st hecor r ectanswer . Mar k Val er i e Nor a Tot al Cont r i but edcapi t al P200, 000 P1 00, 000 P1 50, 000 P450, 000 Bonus( 3: 1 ) Nor a’ sAC P225, 000 Nor a’ sCC 1 50, 000 P 75, 000 Fr om Mar k x¾ ( 56, 250) Fr om Val er i e x¼ Agr eedcapi t al [ 42] . [ 43] . 56, 250 (1 8, 750) P1 43, 750 P 81 , 250 P225, 000 P450, 000 Let t er“ C”i st hecor r ectanswer . Cont r i but i onofJoey P1 20, 000 Agr eedcapi t al r at i o 1 / 3 Tot al agr eedcapi t al P360, 000 Let t er“ A”i st hecor r ectanswer . Capi t al ofLi z P24, 000 I nt er estpur chased 1 / 2 Capi t al cr edi tofSunshi ne [ 44] . 1 8, 750 P1 2, 000 Let t er“ A”i st hecor r ectanswer . Sar ah’ scont r i but i on P1 , 000, 000 Di vi dedbyi nt er estboughtonef our t h Tot al agr eedcapi t al [ 45] . P4, 000, 000 Let t er“ B”i st hecor r ectanswer . Thet ot al amountof“ goodwi l l ”f ort heol dpar t ner si sP1 5, 000,comput edasf ol l ows: Tot al agr eedcapi t al uponVi nce’ sadmi ssi on P330, 000 Less:NetAsset saf t erVi nce’ si nvest ment : Tot al ol dpar t ner scapi t al P235, 000 Vi nce’ scashi nvest ment ­ Tot al netasset s Tot al “ goodwi l l ”f ort heol dpar t ner s 80, 000 31 5, 000 P 1 5, 000 [ 46] . Let t er“ C”i st hecor r ectanswer . Mar c’ scapi t al bal ance,af t erVi nceadmi ssi oni sP79, 1 00,comput edasf ol l ows: * Mar c’ si nt er estpur chased byVi nce( P80, 000x1 5%) P1 2, 000 Vi nce’ scashi nvest ment 80, 000 Vi ncecapi t al cr edi t (70, 000) Bonust ool dpar t ner s P22, 000 Mar c’ scapi t al ( bef or eVi nceadmi ssi on) P80, 000 I nt er estpur chasedbyVi nce (1 2, 000) Shar ei ngoodwi l l ( P1 5, 000x30%) 4, 500 Shar ei nbonus( * P22, 000x30%) 6, 600 Mar c’ scapi t al ( af t erVi nceadmi ssi on) [ 47] . P79, 1 00 Let t er“ C”i st hecor r ectanswer . Theadmi ssi onofanew par t nert oa20% i nt er esti napar t ner shi pf orani nvest ment ofP1 8, 000,wi t ht ot alagr eedcapi t alt obeP75, 000r esul t edt oabonust ool dpar t ner sof P3, 000comput edasf ol l ows: Newpar t ner ’ si nvest ment P1 8, 000 Less:Newpar t ner ’ scapi t al cr edi t( P75, 000x20%) Bonust ool dpar t ner s [ 48] . 1 5, 000 P 3, 000 Let t er“ A”i st hecor r ectanswer . Gi ven t he choi ce bet ween goodwi l land bonusmet hods,Bl ue wi l lpr ef erbonus met hodduet oBl ue’ sgai nofP1 05, 000,comput edasf ol l ows: GMet hod Bl ue’ scapi t al cr edi t : BMet hod ( P1 , 080, 000¸ 75%)x25% P360, 000 ( P1 , 080, 000¸ P220, 000)x25% P325, 000 Less:Bl ue’ si nvest ment 220, 000 220, 000 Goodwi l l / Bonusf orBl ue P1 40, 000 P1 05, 000 Less:Shar ei nsubsequentGW wr i t eof f( 1 / 3) Bl ue’ sgai n 46, 667 P 93, 333 P1 05, 000 Not et hati ft he onl yi mmedi at e ef f ecti sconsi der ed,t he “ goodwi l l ”met hod woul d be pr ef er abl e;butsi ncegoodwi l l ,byi t sel f ,i snonr eal i zabl e,t heover al lef f ectwoul df avort he “ bonus”met hod. [ 49] . Let t er“ C”i st hecor r ectanswer . Theamountofgoodwi l lt hatwasr ecogni zedi nconnect i onwi t ht headmi ssi onoft henew par t nerwasP30, 000,comput edasf ol l ows: Newcapi t al i mpl i edf r om newpar t ner ’ si nvest ment : P60, 000/331 / 3% P1 80, 000 Less:Resul t i ngasset saf t ernewpar t ner ’ si nvest ment : Or i gi nal par t ner s’ i nvest ment P80, 000 Neti ncome 34, 000 Dr awi ngs (24, 000) Newpar t ner ’ si nvest ment 60, 000 I mpl i edgoodwi l l ( f oror i gi nal par t ner s) [ 50] . 1 50, 000 P 30, 000 Let t er“ B”i st hecor r ectanswer . Theamountoft hepr i vat ecashset t l ementef f ect edbet weent heol dpar t ner swas P9, 000,comput edasf ol l ows: Tot al Ter r y Ti mmy Tommy May31i nvest ment s P80, 000 P48, 000 P32, 000 P - Neti ncome: Sal ar i es 1 4, 000 Bal anceat3: 2 7, 000 20, 000 Dr awi ngs 7, 000 1 2, 000 8, 000 (24, 000) (1 4, 000) ( 1 0, 000) December31bal ances P90, 000 I nvest ment I mpl i edgoodwi l l - - 30, 000 P37, 000 1 8, 000 1 2, 000 admi ssi onofnew P1 80, 000 P71 , 000P49, 000 Desi r edbal ances,4: 3: 2 1 80, 000 Pr i vat eset t l ement 80, 000 P 9, 000 P60, 000 40, 000 P(9, 000) Ti mmywi l l t r ansf erP9, 000ofhi scapi t al t oTer r y. [ 51 ] . Let t er“ D”i st hecor r ectanswer . Concept ual quest i on. [ 52] . Let t er“ C”i st hecor r ectanswer . Capi t al ofMi nda P200, 000 Lossonf ur ni t ur ei mpai r ment : Bookval ue Fai rval ue Mi nda’ sshar e( 1 / 3) P65, 000 50, 000 P1 5, 000 Adj ust edcapi t al Lessf ai rval ueoff ur ni t ur e Val ueofnot ei ssuedt oMi nda 5, 000 P1 95, 000 50, 000 P1 45, 000 P - 60, 000 Bal ancesaf t er par t ner - - P53, 000 60, 000 - 60, 000 - [ 53] . Let t er“ A”i st hecor r ectanswer . Capi t al ofPabl o P200, 000 Addshar eonr eval uat i onofi nvent or y: Bookval ue P50, 000 Fai rval ue 70, 000 P20, 000 x20% 4, 000 Tot al P204, 000 Addshar ei nneti ncome: P1 30, 000x20% 26, 000 Adj ust edcapi t al P230, 000 Paymentmadet oPabl o 245, 000 Goodwi l l i ncl udedi nt hepayment [ 54] . P1 5, 000 Let t er“ D”i st hecor r ectanswer . Romy’ sacqui si t i onoft hef ur ni t ur ewoul dr esul ti nRomy’ sr educt i oni ncapi t alofP55, 000, comput edasf ol l ows: Paco Qui n Romy Char gef orf ur ni t ur et aken, atsecondhandval ue P P P50, 000 Shar ei nr eal i zat i onl oss, P65, 000–P50, 000 5, 000 5, 000 5, 000 Reduct i oni ncapi t al i nci dentt o Romy’ sacqui si t i onoft he Fur ni t ur e [ 55] . P5, 000 P5, 000 P55, 000 Let t er“ C”i st hecor r ectanswer . Theval ueoft henot et hatMi ndawoul dgeti sP1 45, 000,comput edasf ol l ows: Mi nda’ scapi t al P200, 000 Less:Char gesf or : Secondhandval ueofassett aken P50, 000 Shar eofl ossonassett aken: ( P65, 000–P50, 000)x1 / 3 5, 000 Tot al char gesagai nstMi nda’ scapi t al 55, 000 Val ueoft henot et obei ssuedt oMi nda [ 56] . P1 45, 000 Let t er“ C”i st hecor r ectanswer . Af t erTi c’ sr et i r ement ,t hepar t ner shi p’ s“ netasset s”wasP225, 000,comput edasf ol l ows: Netasset s,bef or eTi c’ sr et i r ement P400, 000 I mpl i edgoodwi l l : ( P225, 000–P200, 000)/50% Adj ust ednetasset s 50, 000 P450, 000 Less:Paymentt oTi c 225, 000 Netasset s,af t erTi c’ sr et i r ement P225, 000 [ 57] . Let t er“ A”i st hecor r ectanswer . Thepaymentt oPabl oi ncl udedagoodwi l l ofP1 5, 000,comput edasf ol l ows: Paymentf orPabl o’ si nt er est P245, 000 Less:Pabl o’ si nt er estj usthi swi t hdr awal : Januar y1Capi t al P200, 000 Add:Shar ei n: I nvent or ywr i t eup:P20, 000x20% Neti ncomet o6/ 30:1 30, 000x20% Jul y1capi t al j ustbef or ewi t hdr awal Goodwi l l i ncl udedi npaymentt oPabl o 4, 000 26, 000 230, 000 P1 5, 000 [ 58] . Let t er“ C”i st hecor r ectanswer . I fJunir ecei ved P45, 000,Hugo payJunit he amountofP22, 500,comput ed as f ol l ows: ( P45, 000x½) [ 59] . P22, 500 Let t er“ C”i st hecor r ectanswer . Assumi ngt heKat hyi spai dP1 32, 000,Kar enwoul dbecr edi t edi nt heamountof P1 , 200,comput edasf ol l ows: ( P1 35, 000–P1 32, 000)x2/ 5 [ 60] . P1 , 200 Let t er“ C”i st hecor r ectanswer . I fRaei spai dP39, 000i nf ul lpaymentofheri nt er est ,t hecapi t alofAnai mmedi at el y af t erRae’ swi t hdr awal woul dbeP23, 400,comput edasf ol l ows: Amountpai dt oRae P39, 000 Less:Rae’ scapi t al bal ance Bonust oRaef r om AnaandMae 35, 000 P 4, 000 Ana’ scapi t al bal ancebef or eRae’ sr et i r ement P25, 000 Less:Shar ei nbonust oRae( P4, 000x2/ 5) Ana’ scapi t al bal anceaf t erRae’ sr et i r ement [ 61 ] . 1 , 600 P23, 400 Let t er“ D”i st hecor r ectanswer . I mmedi at el yaf t eref f ect i ngt het r ansf eroft henetasset s,andt hei ssuanceofst ock, t he cor por at i on’ s addi t i onalpai di n capi t alaccountwoul d be cr edi t ed f orP1 64, 000, comput edasf ol l ows: Fai rval ueofpar t ner shi p’ snetasset s: P224, 000–P40, 000 Less:Parval ueofst ocki ssuedt opar t ner s: P1 84, 000 ( 1 0, 000xP1 )x2 20, 000 Addi t i onal pai di ncapi t al i nexcessofpar [ 62] . P1 64, 000 Let t er“ C”i st hecor r ectanswer . Thepar t ner sar et or ecei veshar esofst ock,atP1 0parval ue,equalt o1 5, 000,1 5, 000,and 25, 000,r espect i vel y,comput edasf ol l ows: Mac Kuh Nat Repor t edcapi t albal ances P200, 000 P1 00, 000 Shar ei nasset swr i t eup,P1 50, 000,equal l y 50, 000 50, 000 P1 00, 000 50, 000 Tot al parval ueofshar est obe r ecei vedbyeachpar t ner P1 50, 000 P1 50, 000 P250, 000 Shar est ober ecei vedbyeach par t ner ,atP1 0parval ue/ shar e 25, 000 [ 63] . 1 5, 000 1 5, 000 Let t er“ B”i st hecor r ectanswer . Capi t al ofpar t ner shi pbef or eadj ust mentP260, 000 Add( deduct )adj ust ment s: Baddebt spr ovi si on (1 0, 000) I ncr easei ni nvent or y 20, 000 Depr eci at i on ( 3, 000) Adj ust edcapi t al equal t oshar es’ parval ue [ 65] . P267, 000 Let t er“ B”i st hecor r ectanswer . I nt he di st r i but i on oft he P60, 000 cash,Gar do r ecei ved P26, 000,comput ed as f ol l ows: Tot al Gar do Gor do I ni t i al cont r i but i ons P50, 000 P30, 000 P20, 000 1 32, 970 62, 275 Equi v.I nvest ment s( payment s) Equi v.Wi t hdr awal s( r ecei pt s) ( 1 44, 345) ( 79, 1 00) ( 65, 245) Bal ancesbef or epr of i tshar e P 38, 625 P1 3, 1 75 P25, 450 21 , 375 1 2, 825 8, 550 P26, 000 P34, 000 Pr of i t( P60, 000P38, 625) ,6: 4 Di st r i but i onofP60, 000cash [ 66] . P60, 000 70, 695 Let t er“ Ci st hecor r ectanswer . I fal lt he par t ner s ar e per sonal l y sol vent ,def i ci ency/ def i ci enci es r esul t i ng f r om t he l i qui dat i on pr ocess,wi l lr equi r e addi t i onalcash f r om Di na i nt he amountofP50, 000, comput edasf ol l ows: AA Capi t al bal ances Ci t a Di na P420, 000 P21 5, 000 P205, 000 P1 00, 000 Loanbal ances Tot al i nt er est s Bi da - 1 60, 000 - 50, 000 P420, 000 P375, 000 P205, 000 P1 50, 000 Less:shar ei nr eal i zat i on LossofP1 , 000, 000at 3: 3: 2: 2 300, 000 300, 000 Bal ance( def i ci ency) [ 67] . 200, 000 200, 000 P1 20, 000 P P75, 000 P 5, 000P( 50, 000) Let t er“ C”i st hecor r ectanswer . The r emai ni ng cash i s di st r i but ed as Sal ve,P0;Gi l da,P31 , 000;and,Nor a,P49, 000, r espect i vel y,comput edasf ol l ows: Sal ve Capi t al bal ances Gi l da P80, 000 Nor a P1 1 5, 000 P1 05, 000 Real i zat i onl oss(5: 3: 2) ( P1 50, 000–P1 00, 000) Theor et i cal l ossonot her ( 25, 000) (1 5, 000) (1 0, 000) asset ( P320, 000P1 50, 000) ( 85, 000) (51 , 000) (34, 000) Bal ancesbef or edi st r i but i on P( 30, 000) P 49, 000 P 61 , 000 Sal ve’ sdef i ci encyat3: 2 30, 000 ( 1 8, 000) ( 1 2, 000) Cashdi st r i but i on [ 68] . P -0- P 31 , 000 P 49, 000 Let t er“ A”i st hecor r ectanswer . Thet ot al l osst oAi s,P3, 000,comput edasf ol l ows: Tot al bookval ueofnoncashasset sr eal i zed: ( P9, 000+P7, 700+P1 1 , 300) P28, 000 Less:Tot al cas hr ecei ved: ( P6, 000+P3, 500+P1 2, 500) 22, 000 Tot al r eal i zat i onl oss P 6, 000 Tot al l osst oA: ( 3/ 6ofP6, 000) [ 69] . P 3, 000 Let t er“ C”i st hecor r ectanswer . Tot al cashr ecei vedbyBi sP5, 000,comput edasf ol l ows : B,capi t al P7, 000 Less:Shar ei nt ot al r eal i zat i onl oss: ( 2/ 6xP6, 000) 2, 000 Tot al cashr ecei vedbyB [ 70] . P5, 000 Let t er“ D”i st hecor r ectanswer . Thecashr ecei vedbyCi nJanuar yi sP0,comput edasf ol l ows: C,capi t al P3, 000 Less:Shar ei n: Real i zat i onl ossi nJanuar y: ( P9, 000–P6, 000)x1 / 6 P 500 Theor et i cal l osson r emai ni ngnoncashasset s: ( P1 9, 000x1 / 6) 3, 1 67 Tot al P3, 667 Cashr ecei vedbyCi nJanuar y [ 71 ] . P–0– Let t er“ C”i st hecor r ectanswer . Thet ot al amountr ecei vedbyal l oft hepar t ner s,i fXr ecei vedP8, 000uponl i qui dat i on oft hepar t ner shi pwasP52, 000,comput edasf ol l ows: X,capi t al P40, 000 Less:Amountr ec’ di nl i qui dat i on 8, 000 X’ sshar ei nl i qui dat i onl oss P32, 000 Tot al capi t al oft het hr eepar t ner s P1 08, 000 Less:Tot al l i qui dat i onl oss( P32, 000¸4x7) 56, 000 Tot al amountr ecei vedbyal l oft hepar t ner s P 52, 000 [ 72] . Let t er“ B”i st hecor r ectanswer . Assumi ngt hef act sgi veni nNo.1 7,exceptt hatXr ecei vedP26, 000asar esul toft he l i qui dat i on,aspar toft hel i qui dat i onZr ecei vedt heamountofP1 4, 500,comput edasf ol l ows: X,capi t al P40, 000 Less:Amountr ec’ di nl i qui dat i on X’ sshar ei nl i qui dat i onl oss 26, 000 P1 4, 000 Z,capi t al P1 8, 000 Less:Shar ei nl i qui dat i onl oss( P1 4, 000¸ 4x1 ) Amountr ecei vedbyZi nl i qui dat i on [ 73] . Let t er“ B”i st hecor r ectanswer . 3, 500 P1 4, 500 The r espect i ve shar esofSanchezand Tan i nt he f i nalcash di st r i but i on wi l lbe P1 75, 000andP1 25, 000,r espect i vel y,comput edasf ol l ows: Tot al Capi t al bal ances Tan P1 , 250, 000 P750, 000 P500, 000 Not epayabl et oTan Tot al i nt er est Sanchez 200, 000 - 200, 000 P1 , 450, 000 P750, 000 P700, 000 Real i zat i onl oss,equal l y: P1 , 450, 000–P300, 000 ( P1 , 1 50, 000) ( 575, 000) ( 575, 000) Shar ei nf i nal di st r i but i on [ 74] . P 300, 000 P1 75, 000 P1 25, 000 Let t er“ B”i st hecor r ectanswer . I fl i qui dat i ont akespl aceandasset sar er eal i zedatbookval ue,t hepar t ner swoul d r ecei vecashdi st r i but i onsequal t ot hei rr ecor dedcapi t al bal ancesi nf i nal l i qui dat i on. [ 75] . Let t er“ B”i st hecor r ectanswer . Johnr ecei vedt ot al cashdi st r i but i onofP20, 000,comput edasf ol l ows: Al ex Capi t al bal ances Jay P95, 000 John P80, 000 P70, 000 Lossonr eal i zat i onofot her asset sat2: 1 : 1 ( P1 50, 000–P70, 000) ( 40, 000) ( 20, 000) ( 20, 000) Theor et i cal l osson r emai ni ngot herasset s ( P265, 000P1 50, 000) Adj ust edcapi t al bal ances Def i ci encyofAl ex Cashdi st r i but i onbasi s [ 76] . ( 57, 500) ( 28, 750) ( 28, 750) P(2, 500) P31 , 250 P21 , 250 2, 500 ( 1 , 250) ( 1 , 250) P -0- Let t er“ D”i st hecor r ectanswer . P30, 000 P20, 000 Jo shoul d absor b P40, 000 oft her emai ni ng cl ai m agai nstt hef i r m comput ed as f ol l ows: Tot al Jo Lee Vi Capi t al bal ances P 950, 000 P350, 000 P250, 000 P350, 000 Real i zat i onl oss ( 1 , 000, 000) ( 300, 000) ( 200, 000) ( 500, 000) P(50, 000) P 50, 000P 50, 000P ( 1 50, 000) Vi ’ sdef i ci ency,3: 2 - (90, 000)( 60, 000) 1 50, 000 Li abi l i t yf orunpai d Cl ai m [ 77] . P(50, 000) P(40, 000)P(1 0, 000) P–0- Let t er“ B”i st hecor r ectanswer . I ft hef i r stcashsal eofasset sbooked atP1 50, 000 r esul t ed i nnetr eal i zat i onof P1 20, 000,t heamountt obedi st r i but edt oI r enewoul dbeP44, 000,comput edasf ol l ows: I r ene’ scapi t al P70, 000 Less:Shar ei n: Real i zat i onl oss: ( P1 50, 000–P1 20, 000)x20% P 6, 000 Possi bl el ossonr emai ni ngot herasset s: ( P250, 000–P1 50, 000)x20% I r ene’ sshar ei nf i r stcashdi st r i but i on 20, 000 26, 000 P44, 000 [ l xxvi i i ] . Let t er“ D”i st hecor r ectanswer . ForDan t or ecei ve P55, 200 i nf ul lset t l ementofhi si nt er esti nt he par t ner shi p, P1 93, 000mustber eal i zedf r om t hesal eoft hepar t ner shi p’ snoncashasset s,comput edas f ol l ows: Par t ner s’ capi t al Li abi l i t i es P1 30, 000 90, 000 Cash ( 40, 000) Noncashasset s P1 80, 000 Dan’ sdesi r edshar ei nset t l ement P55, 200 Less:Dan’ scapi t al bal ance 50, 000 Dan’ sshar ei nest i mat edr eal i zat i ongai n P 5, 200 Noncashasset s P1 80, 000 Est i mat edr eal i zat i ongai n( P5, 200¸40%) 1 3, 000 Est i mat edr eal i zat i onf r om sal eofnoncashasset [ l xxi x] . P1 93, 000 Let t er“ A”i st hecor r ectanswer . Thedef i ci entpar t neri sBachandhi saddi t i onalcashcont r i but i ont of i nal l yl i qui dat et he par t ner shi pi sP6, 000,comput esasf ol l ows: Bach Li zst St r auss Tot al i nt er est( capi t al and l oanbal ances) P55, 000 P1 05, 000 P200, 000 Real i zat i onl oss,at4: 4: 2 P400, 000–P247, 500 Bal ance( def i ci ency) [ l xxx] . (61 , 000) (61 , 000) (30, 500) P(6, 000) P 44, 000 P1 69, 500 Let t er“ A”i st hecor r ectanswer . Thebookval ueoft hepar t ner shi p’ snoncashasset sonMay31 ,201 1 ,wasP1 80, 000, comput edasf ol l ows: Par t ner s’ capi t al ( assumedt obeaf t er consi der i ngt heneti ncome) Li abi l i t i es P1 30, 000 90, 000 Tot al asset s Less:Cash Bookval ueofnoncashasset sonMay31 ,201 1 endofqui zzer - P220, 000 40, 000 P1 80, 000