Answered: 11. A, B and C are partners with the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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11. A, B and C are partners with the following contribution.A=60,000 B=20,000 C =20,000 and services. If there is no stipulation as to the profit sharing, and the partnership profit is P90,000. How much is their participation? (It was determined that P30,000 is just and equitable for the services of C) A=45,000 B=22,500 C =22,500 A=36,000 B=42,000 C =12,000 A=54,000 B=18,000 C =18,000 A=36,000 B=12,000 C =42,000 12. The organization or formation of the partnership is followed by other contracts to carry out its purpose. Which characteristic of the Contract of partnership is this? Preparatory Onerous Principal Bilateral 13. Statement I: General Rule, if a managing partner received money from a third person who owes the partnership and the managing partner, the amount received must be applied first to the obligation to the managing partner. Statement II:General Rule, if a managing partner received money from a third person who owes the partnership and the managing partner, the money received must be applied first to the obligation to the partnership, when receipt is in the name of partnership. Statement I is True; Statement II is False Statement I is False; Statement II is True Both statements are True Both statements are False 14. Statement I: A universal partnership of all present property is one in which the partner contributes all the property which actually belongs to them to a common fund including profit acquired from such property. Statement II: If stipulated in a universal partnership of present property, the fruits of properties acquired by inheritance, legacy or donation can also be included. Both statements are False Statement I is True; Statement II is False Both statements are True Statement I is False; Statement II is True 15. Statement I: Universal Partnership of all present property contributed by the partners to a common fund as well as profits acquired therein Statement II: Universal partnership of profits refers to all that the partners may acquire by their industry or work during the existence of the partnership. Both statements are False Statement I is False; Statement II is True Statement I is True; Statement II is False Both statements are True 16. A, B and C formed a universal partnership of all present property with the following contribution: A= car, B=Land, C=Building. Who is the owner of the things contributed? Partners, ownership is not transferred. Government, because the partnership is unlawful. Partnership, ownership has been transferred upon contribution. Third person, because partnership is void. 17. A, B and C are partners with the following contribution.A=60,000 B=20,000 C =20,000 and services. They agreed that profit shall be divided accordingly: A=50%, B=25% C=25%. If profit is P90,000, how much is the share of each partner? A=54,000 B=18,000 C =18,000 A=45,000 B=22,500 C =22,500 A=30,000 B=30,000 C =30,000 A=22,500 B=22,500 C =45,000 18. A partner whose connection with the partnership is concealed and who does not take any act or part in it. Dormant Partner Silent Partner Private Partner Ostensible Partner 19. Statement I: Under the rule of universal partnership of profits, profits that are acquired through chance such as lottery without employment is not included in the contribution to capital. Statement II: If without specification on its nature, Universal partnership is always deemed a Universal partnership of all present property because it imposes less obligations on the partners. Both statements are False Statement I is False; Statement II is True Statement I is True; Statement II is False Both statements are True 20. Statement I: Partnership has a fixed term when the term of existence is unlimited even after accomplishment of purpose or specific undertaking.Statement II: Partnership is at will when there is a specific period or term of existence and expiration thereof dissolved the partnership. Statement I is True; Statement II is False Both statements are True Statement I is False; Statement II is True Both statements are False

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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