1.Psy and Clyd formed a partnership on January 1, 2018 by contibuting capital of P262,500 and P37,500, respectively. They agreed to share profits and losses 70% and 30% respectively. Clyd manages the partnership and is given a salary of P5,000 a month and bonus of 20% of net income before salary, interest and bonus. Interest of 5% of the beginning capital is to be given to each partner and any remainder is to be divided according to their profit and loss ratio. For the year ended December 31, 2018, the partnership generated a net income of P48,000 after salaries, interests and the bonus. What is the amount received by Clyd in the distribution of profit?

a. 76,275

b. 107,025

c. 77,275

d. 105,150

2. What is the term used for retained earnings with debit balance?

a. Deficit

b. Deficiency

c. Discount

d. Secret reserve

3. If a partner who retired from the partnership receives less than the capital balance before retirement which also resulted to decrease in the capital balance of remaining partners, which is correct?

a. Revaluation surplus is recognized before the retirement.

b. An impairment loss is recognized before the retirement.

c. The retiring partner receives bonus from remaining partner

d. The retiring partner gives bonus to the remaining partner.

4. Which of the following transaction will decrease the capital balance of a partner?

a. Share in partnership profit

b. Drawings by said partner

c. Receipt of bonus from other partners

d. Additional investment by said partner

6. Psy and Clyd formed a partnership on January 1, 2018 by contibuting capital of P262,500 and P37,500, respectively. They agreed to share profits and losses 70% and 30% respectively. Clyd manages the partnership and is given a salary of P5,000 a month and bonus of 20% of net income before salary, interest and bonus. Interest of 5% of the beginning capital is to be given to each partner and any remainder is to be divided according to their profit and loss ratio. For the year ended December 31, 2018, the partnership generated a net income of P48,000 after salaries, interests and the bonus. What is the amount received by Psy in the distribution of profit?

a. 33,600

b. 45,725

c. 77,475

d. 46,725

7.At the date of partnership formation of ABC partnership, the amount credited to A's capital is less than the fair market value of the property he contributed. Which of the following is the most valid reason?

The property contributed by A is impaired.

The property contributed by A has been subjected to positive asset revaluation.

Goodwill arising from partnership formation has been recognized.

Bonus has been given by partner A to the other partners.

10. In the absence if partnership profit agreement to the contrary, how shall industrial partner share in partnership profit?

a. Just and equitable share

b. Equal to the share of the highest capitalist partner

c. Equal to the share of the least capitalist partner

d. Equal to the average share capitalist partners

11. In the absence of partnership agreement to the contrary, what is the obligation of the partners as regards to capital contribution?

a. Equally

b. Based on their profit agreement

c. Based on their withdrawal agreement

d. Based on their loss agreement

14.At the time of partnership liquidation, which credits shall be settled first?

a. Amount owing to partners with respect to capital contribution

b. Amount owing to third persons

c. Amount owing to partners with respect to share in profit

d. Amount owing to partners other than capital contribution and share in profit

15.A,B and C decided to form ABC partnership. It was agreed that A will contribute an equipment with assessed value of P200,000 with historical cost of P1,600,000 and accumulated depreciation of P1,200,000. A date after the partnership formation, the equipment was sold for P600,000. B will contribute a land and building with carrying amount of P2,400,000 and fair value of P3,000,000. The land and building are subject to a mortgage payable amounting to P600,000 to be assumed by the partnership. The partners agreed that B will have 60% capital interest in the partnership. The partners also agreed that C will contribute sufficient cash to the partnership. What is the cash to be contributed by C in the ABC Partnership?

a. 1,200,000

b. 1,000,000

c. 1,400,000

d.1,600,000

16.Which of the following statements is correct when a new partner is admitted to an existing partnership by purchasing a portion of a capital interest of an existing partner?

a. It will just result to credit to capital of newly admitted partner with corresponding debit to capital of the selling partner.

b. It will result to revaluation or impairment of existing assets of the partnership.

c. The partnership will recognize gain or loss in the transfer of capital from one partner to another partner.

d. The partnership is not dissolved by the admission of a new partner by purchase.

17.In the liquidation of limited partnership, which of the following credits shall be paid last?

a. Those owing to third persons.

b. Those owing to general partners for their share in profits.

c. Those owing to partners for their capital contribution.

d. Those owing to limited partners.

19.A,B and C decided to form ABC partnership. It was agreed that A will contribute an equipment with assessed value of P200,000 with historical cost of P1,600,000 and accumulated depreciation of P1,200,000. A date after the partnership formation, the equipment was sold for P600,000. B will contribute a land and building with carrying amount of P2,400,000 and fair value of P3,000,000. The land and building are subject to a mortgage payable amounting to P600,000 to be assumed by the partnership. The partners agreed that B will have 60% capital interest in the partnership. The partners also agreed that C will contribute sufficient cash to the partnership. What is the total agreed capitalization of the ABC Partnership?

a. 4,000,000

b. 3,000,000

c. 6,000,000

d. 5,000,000

23.Which of the following will not result to dissolution of a general partnership?

a. Death of a partner

b. Insolvency of a partner

c. Retirement of a partner

d. Assignment of a partner's interest to a third person.

24.In admission of a new partner by investment, the total contributed capital of all the partners is more than the total agreed capitalization of new partnership but the capital credit of new partner is less than his capital contribution. Which of the following statements is correct?

a. There has been asset impairment with bonus to old partners

b. There has been asset revaluation with bonus to new partner.

c. There has been asset revaluation with bonus to old partners.

d. There has been bonus given to old partners without any revaluation or impairment.