1. On December 1, 20x5, EE and FF formeda partnership, agreeing to share for profits and losses in the ratio of 2:3, respectively. EE invested a parcel of land that cost him P25,000. FF invested P30,000 cash. The land was sold for P50,000 on the same date, three hours after formation of the partnership. How much should be the capital balance of EE right after formation? C. d. a. b. P25,000 30,000 P60,000 50,000 (AICPA)
1. On December 1, 20x5, EE and FF formeda partnership, agreeing to share for profits and losses in the ratio of 2:3, respectively. EE invested a parcel of land that cost him P25,000. FF invested P30,000 cash. The land was sold for P50,000 on the same date, three hours after formation of the partnership. How much should be the capital balance of EE right after formation? C. d. a. b. P25,000 30,000 P60,000 50,000 (AICPA)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
How to compute
Transcribed Image Text:9.
Partnership
DD is to invest sufficient cash to obtain a 1/3 interest in the partnership.
Compute for: (1) CC's adjusted capital before the admission of DD; and
(2) the amount of cash investment by DD:
a.
b.
(1) P35,374; (2) P17,687
(1) P35,347: (2) P11,971
36,374: (2) 18,487
(1)
C.
28,174; (2) 14,087
(Adapted)
d.
7. MM, NN, and O0 are partners with capital balances on December 31,
20x5 of P300,000, P300,000 and P200,000, respectively. Profits are shared
equally. OO wishes to withdraw and it is agreed that O0 is to take certain
equipment with second-hand value of P50,000 and a note for the balance
of OO's interest. The equipment are carried on the books at P65,000. Brand
new equipment may cost P80,000. Compute for: (1) O0's acquisition of
the second-hand equipment will result to reduction in capitat; (2) the value
of the note that will O0 get from the partnership's liquidation.
(1) P15,000 each for MM and NN,
(1) P5,000 each for MM, NN and O0,
(1) P5,000 each for MM, NN and 00,
(2) P150.000.
(2) P145,000.
(2) P195,000.
(2) P145,000.
a.
b.
C.
d.
) P7,500 each for MM and NN,
(Adapted)
8. Jones and Smith formed a partnership with each partner contributing the
folowing items:
Smith
Jones
P 80,000
300,000
400.000
P 40,000
Cash...
Building - cost to Jones
fair value
Inventory- cost to Smith
fair value
Mortgage payable
Accounts payable.
200.000
280,000
120,000
60.000
Assume that for tax purposes Jones and Smith agree to share equally in
the liabilities assumed by the Jones and Smith partnership. What is the
balance in each partner's capital account for financial accounting
purposes?
Jones
Smith
P270,000
P180,000
P260,000
P300,000
P350,000
В.
A.
P260,000
C. P360,000
D. P500,000
C. Option C
d. Option D
a. Option A
b.
Option B
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Transcribed Image Text:Partnership
Partnership Formation:
1. On December 1, 20x5, EE and FF formed a partnership, agreeing to share
for profits and losses in the ratio of 2:3, respectivelý. EE invested a parcel of
land that cost him P25,00O. FF invested P30,000 cash. The land was sold for
P50,000 on the same date, three hours after formation of the partnership.
How much should be the capital balànce of EE right after formation?
a.
b.
P25,000
P60,000
50,000
C.
30,000
(AICPA)
2. On March 1, 20x5, Il and JJ formed a partnership with each contributing
the following assets:
JJ
Cash..
Machinery and equipment
Building..
Furniture and fixtures
P300,000 P 700,000
750,000
2,250.000
250,000
100,000
The building is subject to mortgage loan of P800,000, which is to be assumed
by the partnership agreement provides that II and JJ share profits and
losses 30% and 70%, respectively. On March 1, 20x5 the balance in JJ's
capital account should be:
0000a. P3,700,000
b. 3,140,000
P3.050.000
2,900,000
C.
d.
(AICPA)
3. The same information in Number 2, except that the mortgage loan is not
assumed by the partnership. On March 1. 20x5 the balance in JJ's capital
account should be:
a. P3,700,000
b. 3,140,000
C.
P3,050,000
C.
2,900,000
(Adapted)
4. As of July 1, 20x5, FF and GG decided to .orm a partnership. Their balance
sheets on this date are:
FF
GG
Cash. .
Accounts receivable
Merchandise Inventory...
Machinery and equipment
P 15,000
540.000
P 37,500
225,000
202,500
270,000
150,000
Total...
P705,000
P735,000
Accounts Payable.
FF, capital...
GG, capital
P135,000
570,000
P240,000
495,000
Total
P705.000
P735,000
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