Question

Ritchie, a partner in the partnership that carries the name Car Parts has a 30% participation in the partnership profits. His capital account had a net decrease of P48,000 during the year. During the same year, Ritchie withdrew P104,000 (charged against his capital account) and contributed property valued at P20,000 to the partnership.

What was the net income of the business for that year?

Group of answer choices

120,000

440,000

132,000

36,000

Flag this Question

Question 22 pts

On April 30, A, B and C formed a partnership, contributing the following: A gave cash of P50,000; B gave property with a carrying amount of P40,000, original cost of which was P50,000 but with a fair value of P80,000; C gave an equipment with a P30,000 carrying amount, P75,000 original cost but with a fair value of P55,000. B's property has a mortgage lien of P35,000 which the partnership will assume. The partners will share profit and loss equally. The partner with the highest capital account balance is

Group of answer choices

A

All capital accounts are equal

C

B

Flag this Question

Question 32 pts

On July 1, 2019, Kardo, Karlo formed KK partnership, agreeing to share profits and losses in the ratio 4:6, respectively. Kardo contributed a parcel of land that cost him P25,000. Karlo contributed P50,000 cash. The land was sold for P50,000 on July 1, 2019, four hours after formation of the partnership. How much should be recorded in Kardo capital account on formation of the partnership?

Group of answer choices

25,000

50,000

20,000

10,000

Flag this Question

Question 42 pts

CandyCAN partnership had a net income of P8,000 for the month ended September 30, 2019.

Sunshine purchased an interest in the CandyCAN partnership of Cesar and Ricky by paying Cesar P32,000 for half of his capital and half of his 50% profit sharing interest on October 1, 2019. At this time, Cesar capital balance was P24,000 and Ricky capital balance was P56,000. Cesar should receive a debit to his capital account of

Group of answer choices

26,667

12,000

16,000

20,000

Flag this Question

Question 52 pts

Use the following information for Questions No 5 to 7

Jenny, Mar and Rie formed a partnership by combining their separate businesses with the following statement of financial position:

	Jenny	Mar	Rie
Cash	90,000	5,000	60,000
Accounts receivable	45,000	20,000	75,000
Allowance for doubtful accounts	3,000	2,000	5,000
Land		80,000
Building		100,000
Acc. Depreciation - Bldg		50,000
Mortgage payable - bank		60,000
Owner's capital	132,000	93,000	130,000

They agreed that the mortgage payable shall be absorbed by the partnership and that the following assets should be revalued at their respective fair market values:

Accounts receivable at 90%

Land at 120%

Building at 70%

They also agreed that their capital balances should be equal in amount and profit and losses should be divided equally. Any partner whose capital balance is not equal to that of the partner with the highest capital balance after adjustments shall give additional cash contribution

Which of the partners has the highest capital balance after adjustments and how much

  

Group of answer choices

Jenny, P130,500

Rie, P130,000

Jenny, P127,800

Mar, P129,000

Flag this Question

Question 62 pts

Using the same information in Question No. 5, how much is the total additional cash contribution of the partners with lower capital balances?

Group of answer choices

2,500

2,000

4,500

3,000

Flag this Question

Question 72 pts

Using the same information in Question No. 5, how much is the total partnership capital?

Group of answer choices

391,500

387,000

389,500

390,000

Flag this Question

Question 82 pts

Jong and Kajong are partners who share profits and losses in the ratio of 6 : 4, respectively. Jong's salary is P120,000 and Kajong's is P60,000. The partners are also paid interest on their average capital balances.

In 2019, Jong received P60,000 of interest and Kajong, P24,000. The profit and loss allocation is determined after deductions for the salary and interest payments . If Kajong's total share in the net profit is P204,000, what was the total partnership income?

Group of answer choices

774,000

384,000

546,000

690,000

Flag this Question

Question 92 pts

On January 1, 2019, MARIA, MARA, MARIZ, and MARLA formed 4M Trading Co., a partnership with capital contributions as follows : MARIA, P50,000; MARA, 25,000; MARIZ, P25,000; and MARLA, P20,000. The partnership contract provided that each partner shall receive a 5% interest on contributed capital, and that MARIA and MARA shall receive salaries of P5,000 and P3,000, respectively. The contract also provided that MARIZ shall receive a minimum of P2,500 per annum, and MARLA a minimum of P6,000 per annum, which is inclusive of amounts representing interest and share of remaining profits. The balance of the profits shall be distributed to MARIA, MARA, MARIZ and MARLA in 3:3:2:2 ratio.  

What amount must be earned by the partnership, before any charge for interest and salaries, so that MARIA may receive an aggregate of P12,500 including interest,, salary and share of profits?

Group of answer choices

30,667

30,000

16,667

32,333

Flag this Question

Question 102 pts

Arturo Perez, a partner in AP Partneship, has a 30% participation in partnership profits and losses . Perez's capital account has a net decrease of P60,000 during the calendar year 2019. During 2019, Perez withdrew P130,000 (charged against his capital account) and contributed property valued at P25,000 to the partnership.

What was the net income of the AP Partnership for 2019?

Group of answer choices

350,000

233,333

550,000

150,000

Answer 1