Partner C decided to retire when the partners’ capital balances were: A, ₱600,000; B, ₱600,000; and C, ₱400,000. It was agreed that Partner C is to take the partnership’s fully depreciated equipment with a fair value of ₱24,000 and a note for the balance of her interest. The historical cost of the equipment is ₱36,000. The partners share in profits and losses equally. How much is the total partnership capital after the retirement of C? 1,216,000 1,261,000 1,264,000 1,624,000

1. Partner C decided to retire when the partners’ capital balances were: A, ₱600,000; B, ₱600,000; and C, ₱400,000. It was agreed that Partner C is to take the partnership’s fully depreciated equipment with a fair value of ₱24,000 and a note for the balance of her interest. The historical cost of the equipment is ₱36,000. The partners share in profits and losses equally. How much is the total partnership capital after the retirement of C?

1,216,000

1,261,000

1,264,000

1,624,000

2.Apple, Samsung, Lenovo, and Huawei are partners with interests of P60,000 (30%); P65,000 (20%); P26,000 (10%) and P90,000 (40%) to Apple, Samsung, Lenovo, and Huawei each, respectively. Assume that the partners admit Oppo into the partnership. Oppo is to invest P50,000 and to purchase 1/4 of the capital balances of Samsung and Lenovo for P25,000 with the assets being adjusted. Oppo is to have 20% share in the new partnership and a 15% share in the profits and losses. The agreed capital of the partnership after the admission of Oppo is P310,000. Determine the capital balance of Apple after the admission of Oppo.

3.Jen, Raks, and Fred are partners with average capital balances during 2019 of P945,000, P477,300, and P324,700, respectively. The partners receive 10% interest on their average capital balances; after deducting salaries of P244,650 to Jen and P165,250 to Fred, the residual profits or loss is divided equally. In 2019, the partnership had a net loss of P251,248 before the interest and salaries to partners. By what amount should Jen’s and Fred’s capital account change – increase (decrease)?

Jen, P60,534; Fred, (P80,896)

Jen, P58,952; Fred, P35,072

Jen, P56,716; Fred, P64,916

Jen, P81,688; Fred, P62,470

4. Basti Co. delivered 150 portable gas stoves to Sarah Co. on consignment. These stoves cost P2,700 each and could be sold for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that Basti Co. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered an Account Sales at the end of the first month showing among others, the following information: Advertising P6,750; Delivery Expense P3,375 and Commission P10,135. How many units were sold by Sarah during the first month?

30

20

15

25

5. Basti Co. delivered 150 portable gas stoves to Sarah Co. on consignment. These stoves cost P2,700 each and could be sold for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that Basti Co. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered an Account Sales at the end of the first month showing among others, the following information: Advertising P6,750; Delivery Expense P3,375 and Commission P10,135. 2.How much is the amount remitted by Sarah to Basti for the first month?

22,950

20,250

67,500

47,250

6. Basti Co. delivered 150 portable gas stoves to Sarah Co. on consignment. These stoves cost P2,700 each and could be sold for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that Basti Co. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered an Account Sales at the end of the first month showing among others, the following information: Advertising P6,750; Delivery Expense P3,375 and Commission P10,135. The consignment profit (loss) to Basti is

16,875

10,125

6,750

20,250