1.

On December 31, 20x20, the Statement of Financial Position of UFC Partnership shows the following data with profit or loss sharing of 2:3:5.

Cash	P15,000,000	Liabilities to others	P20,000,000
Other Noncash asset	40,000,000	U, Capital	15,000,000
		F, Capital	12,500,000
		C, Capital	7,500,000

On January 1, 20x21, the partners decided to wind up the partnership affairs. During the winding up, liquidation expenses amounted to P2,000,000 were paid. Non-cash assets with book value of P30,000,000 were sold during January. 40% of total liabilities were also paid during January. P3,000,000 cash was withheld during January for future liquidation expenses. On January 31, 20x21, partner U received P10,000,000.

What is the amount received by partner F on January 31, 20x21?

2.

D, E and F are partners in DEF Partnership with profit or loss sharing ratio of 6:1:3. Due to disagreement, the partners decided to liquidate their business with pre-liquidation statement of financial position presented below:

Cash	P 3,000,000	Liabilities	P10,000,000
Noncash assets	17,000,000	D, Capital	1,000,000
		E, Capital	4,000,000
		F, Capital	5,000,000

The following additional notes are provided:

• All partners are legally declared to be personally insolvent.
• All noncash assets are sold during the liquidation process.
• Liquidation expenses amounting to P2,000,000 were paid.
• E receives a total of P2,500,000 at the end of liquidation.

How much is the net proceeds from the sale of all noncash assets?

3.Frank, George and Scott are partners with capital accounts of P160,000, P120,000 and P210,000, respectively. Scott has informed Frank and George that he must withdraw from the partnership. The partners has agreed that the partnership will purchase Scotts ownership interest for P250,000. The profit and loss residual ratios before Scotts retirement are 45 percent, 30 percent, and 25 percent, respectively. How much will Franks capital account be reduced if the bonus method is applied for the withdrawal?

4.

Partners Samson and Delilah have profit and loss agreement with the following provisions: salaries of P90,000 and P135,000 for Samson and Delilah, respectively: a bonus to Samson of 10% of net income after salaries; and interest of 10% on average capital balances of P60,000 and P105,000 for Samson and Delilah, respectively. One-third of any remaining profits will be allocated to Samson and the balance to Delilah.

If the partnership had net income of P66,000, how much should be allocated to Partner Samson, assuming that the provisions of the profit and loss agreement are ranked by order of priority starting with 1) salaries, 2) interest, 3) bonus and up to the extent of the ranking only?

5.

Two sole proprietors, L and M, agreed to form a partnership on January 1, 20x4. The trial balance for each proprietor is shown below as of January 1, 20x4.

L M

Book Value Fair Value Book Value Fair Value

Cash . . . . . . . . . . . . . . . . . . P 40,000 P 40,000 P 30,000 P 30,000

Accounts receivable (net). . 60,000 52,000 70,000 56,000

Merchandise inventory . . . . 100,000 94,000 100,000 114,000

Building (net) . . . . . . . . . . . . . 280,000 320,000 250,000 280,000

Furniture and Fixture (net) . . 60,000 64,000 40,000 44,000

Accounts Payable . . . . . . . . 110,000 110,000 80,000 80,000

Mortgage Payable . . . . . . . . 200,000 200,000 150,000 150,000

L, Capital . . . . . . . . . . . . . . . . 230,000

M, Capital . . . . . . . . . . . . . . . 260,000

The LM partnership will take over the assets and assume the liabilities of the proprietor as of January 1, 20x4.

Determine the total assets after formation of the partnership.