Direction: Choose the CORRECT answer in each problem. PROVIDE COMPUTATION/SOLUTION. Dont use ai generated answer.

PARTNERSHIP 1. Lovi and Myrah formed a partnership on July 1, 2014 and contributed the following assets: LOVIMYRAHCash-P65,000Cash-P100,000Land-0Land-P300,000 The realty was subject to a mortgage of P25,000, which was assumed by the partnership. the partnership agreement provides that Lovi and Myrah share profits and losses in the ratio of one-third and wo-thirds, respectively. Myrah's capital account on July 1, 2014 should be: a. 1400,000 b. P310,000 c. P391,667 d. P375,000 2. Balstein invests the following in a partnership: office equipment with a fair market value of P124,000; delivery equipment with a fair market value of P150,000; and cash of P60,000. He owes P54,000, represented by a note on the delivery equipment, The amount of Balstein's capital would be: a. P60,000 b. P334,000 c. P280,000 d. P274,000 3. E, F and G invested P40,000,P30.000, and P25.000, losses as follows! G Partnership on June 30, 2013. They agreed to divide the income or losses as follows: 1. Salaries of P10,000,P8,000, and P6,000, respectively, to E,F, and G. 2. Interest of 10% on beginning capital account balances 3. Remaining net income or loss divided equally 4. A minimum of P15,000 of income guaranteed to G. If the income of the partnership for the fiscal year ended June 30. 2014, before salaties and interest allowances to partners, was P44,000, the amount of income credited to E is: a. P17,500 b. F16,000 C. P14,667 d. P14,000 4. A, B, and C are partners in an accounting firm. Their capital account balances at year end were as follows: A, P90,000; B, P110,000; and C. P50,000. 1 hey share profits and losses on a 4:4:2 ratio after the following special terms: 1. Partner C is to receive a bonus of 10% of net income after the bonus. 2. Interest of 10% shall be paid on that portion of a partners 3. Salaries of P10,000 and P12,000 shall be paid to A and C. respectively. Assuming a net income of P44,000 for the year, the total profit share of C would be: a. P7,800 b. P16,800 C. P19,400 d. P19,800 5. A partnership began in 2014 with the following capital balances: Aira, Capital : P60,000 Bea, Capital : P80,000 Cindy, Capital : P100,000 The Articles of Partnership stipulates that profits and losses be assigned in the following manner. 1. Each partner is allocated an interest equal to 10% of the beginning capital balance. 2. Bea is allocated compensation of P20,000 per year. 3. Any remaining profits and losses are allocated on a 3:3:4 basis, respectively 4. Each partner is allowed to withdraw up to P5,000 cash per year. Assuming that the net income for 2014 is PSO,000 and that each partner withdraws the maximum amount allowed, what is the balance in Cindy's capital at the end of the year? a. P105,800, b. 106,200 , c. 106,900 , d. 108,400 6. A partnership begins its first year of operation with the following capital balances: Wendy, Capital : P110,000 Dindi, Capital : P80,000 Sandy, Capital : P1 10,000 According to the Avticles of Partnership, all profits will be assigned as follows: 1. An annual salary of P20,000 will be awarded to Wendy and of P10,000 to Sandy. 2. The partners will be attributed with interest equal to 10% of the capital balance as of the first day of the year. 7. The remainder will be assigned on a 5:2:3 basis, respectively, 4. Each partner is allowed to withdraw up to P10,000 per year. Assume that the net loss for the first year of operations is P20,000 with a net income of P40,000 in the subsequent year. Assume further that each partner withdraws the maximum amount from the business each period. What is the balance in Wendy's capital account at the end of the second year? a. P102,600 b. P104,400 c. P108,600 d. P109,200 8. On January 2, 2014, Bing and Ping formed a partnership with capital distributions of P175,000 and P25,000, respectively. They agreed to share protits and losses 80% and 20%, respectively. Ping is the general manager and works in the partnership full time. Ping is given a salary of P5,000a month; an interest of 5% on partner's starting capital; and a bonus of 15% of net profit before the salary, interest, and bonus. The condensed profit and loss statement of the partnership for the year ended December 31, 2014 is as follows: Net sales : P875,000 Cost of sales : P700,000 Gross profit on sales : P175,000 Expenses (including salary, interest, and bonus) : P143,000 Net profit : P32,000 The bonus in 2014 is: a. P13,304.35 b. P18,000.00 c. P15,300.00 d. P20,700.00 9. Jimmy, Edwin, and Renan formed a partnership on January 1. 2014, and contributed P150,000,7200,000, and P250,000, respectively. The Articles of Fartnership provides that the operating income be shared among the partners as follows, as salary, P24,000 for Jimmy. P18,000 for Edwin, and P12,000 for Renan, interest of 121/0 on the average Coplar during 2014 of the three partners: and the remainder in the ratio of 2:4g, respectively. The operating income for the year ending December St. 2014 amounted P176,000. Jimmy contributed an additional capital of P30,000 on July 1 and made a drawing of P10,000 on October 1: Edwin contributed an additional capital of P20,000 on August 1 and made a drawing of P10,000 on October 1 : and Renan made a drawing of P30,000 on November 1. The division of the P176,000 operating income is: a. Jimmy, P53, 760; Edwin, P62,520; and Renan, P59,720 b. Jimmy, P35, 200; Edwin, P70,400; and Renan, P70,400 c. Jimmy, P48,400; Edwin, P66,800; and Renan, P60,800 d. Jimmy, P53, 180; Edwin, P62,060: and Renan, P60,760 10. Red, White, and Blue are partners who had average capital balances in 2014 , of P240,000,P120,00, and P80,000, respectively. Partners receive 10% on their average capital balances. After deducting salaries of P60,000 for Red and P40,000 for Blue, the residual profit or loss is divided equally. In 2014, the partnership sustained a P66,000 loss before the interest and salaries to partners. By what amount would the capital account of Red Change? a. P14,000 increase b. P22,000 increase c. P70,000 increase d. P84,000 decrease 11. Malakas is a partner and has an annual salary of P30,000 but he actually draws P3,000 per month. The other partner has an annual salary of P40,000 and draws P4,000 per month. What is the total annual salary that should be used to allocate annual net income befween the partners. a. P14,000,b. P50,000, c. 170,000 , d. P84,000 12. A partnership has the following accounting amounts: Partnership net income (loss) is: a. P20,000, b. P18,000, c. P5,000, d P(3,000)