Problems

1. LF, EZ, and GT are partners with capital balances of P67,200, P108,000 and

P38,000 respectively, sharing profits and losses in the ratio of 2:5:1. SG is admitted

as a new partner bringing with him expertise and is to invest cash for a 15% interest

in the partnership considering the transfer of capital from him of P18,000 upon his

admission.

Upon admission of SG, which of the following statements is false?

A. The capital account of GT will be credited in the amount of P2,250

B. The total agreed capital of the old partners is P18,000 greater than their

contributed capital

C. The capital balance of EZ amount to P119,250

D.Cash will be debited in the amount of P40,800.

2. On June 1, 2013, AZ invited MG to join him in his business. MG agreed provided

that AZ will adjust the accumulated depreciation of his equipment account to a

certain amount, and will recognize additional accrued expenses of P40,000. After

that, MG is to invest additional pieces of equipment make her interest equal to 45%.

If the capital balances of AZ before and after adjustment were 556,00 and 484,000

respectively, what is the effect in the carrying value of the equipment as a result of

the admission of MG?

A. 364,000

B. (32,000)

C. 396,000

D. (324,000)

3. TM and SJ, having capital balances of P980,000 and P525,000 respectively,

decided to admit GD into the partnership. If TM and SJ share profit in proportion of

3;1 respectively, and SJ's capital balance after GD's investment is P589,750, how

much was invested by GD?

A. P848,750

B. P1,174,250

C. P588,000

D. P847,000

4. RD formed a partnership on February 10, 2009. R contributed cash of P150,000,

while D contributed inventory with a fair value of P120,000. Due to R's expertise in

selling, D agreed that R should have 60% of the total capital of the partnership. R

and D agreed to recognize goodwill. what is the total capital of the RD partnership

after the goodwill is recognized?

A.P450,000

B.P330,000

C.P300,000

D.P270,000

5. In AD partnership, Allen's capital is P140,000 and Daniel's capital is P40,000 and

they share a net income ratio of 3:1 respectively. They decided to admit David in

the partnership. What amount will David invest to give him 1/5 interest in the

partnership if no bonus/goodwill is recorded?

A.P60,000

B.P36,000

C.P50,000

D.P45,000

ANSWERS: D,A,D, C,D