Subject: Partnership Dissolutions

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Answers: 7. D 8. D 9. C 10. C 11. A 12.B 13. D

10. 11. 12. 13. Juliet and Kilo have capital balances of P200500 and P220500 respectively before admission of Lima. Their prot and loss agreement was 35:65. Lima was to be admitted for 40% interest in the partnership and 20% in the profits and losses by contributing a used machine which had a cost of P205500 and an appraised value of P180500. After admission of Uma, Juliet and Kilo agreed to share prots and losses equally. At the end of the year the new partnership generated net income of P130500. How much is the capital balance of Kilo after admission of Lima? A. P174500 B. P259500 C. P181500 D. P240500 How much is the capital balance of Juliet at the end of the year? A. P231500 0. P221500 C. P224500 D. P242000 Assuming there Is an Implied undervaluation or overvaluation of an asset, how much is the undervaluation or {overvaluatlon) of the asset? A. P300500 8. (P150000) C. (P300500) D. P150,000 Assuming there is an lrnplled undervaluation or overvaluatlon of an asset, how much is the capital balance of Kllo at the end of the year? A. P467500 8. \"7.000 C. P369500 D. P174500 On December 31, 20x20, the unadjusted Statement of Financial Position of UFC Partnership shows the following data with prot or loss sharing agreements of 2:3:5. Total Assets P100,000,000 Total Liabilities P40,000,000 U, Capital 10,000,000 F, ICapital 20,000,000 C, Capital 30,000,000 On December 31, 20x20, U decided to retire from the partnership. However, before the distribution of cash to U, the following data errors were discovered during the ore-retirement audit: During 20x20, the property, plant and equipment has not be subject to revaluation surplus by P15,000,000. The 20x20 net income is overstated by P5,000,000. After the adjustment, U received retirement pay of P15,000.000 for his capital interest. What is the capital balance of F after the retirement of U? A. P23,000,000 B. P21,000,000 c. P18,875,000 D. P21,B?5,000 S, A and T are partners with capital balances of P?84,000, P2330300 and P1,190,000 respectively, sharing prots and losses in the ratio of 3:2:1. D Is admitted as a new partner bringing with him expertise and is to invest cash for a 25% interest in the partnership which Includes a credit of P735,000 for bonus upon his admission. How much cash should D contribute? A. P1,323,000 e. P2,100,000 C. P1,575,000 D. P588,000 E and M are partners with capital balances of P30,000 and P70,000, respectively. B has a 30% interest in profits and losses. At this time, the partnership has decided to admit R and L as new partners. R contributes cash of P55,000 for a 20% interest in capital and a 30% interest in prots and losses. L contributes cash of P10,000 and an equipment for a 25% interest In capital and 35% Interest in prots and losses. If bonus amounting to P18,250 Is given to the old partners, what is the value of the equipment contributed by L? A. P31,750 B. P43,750 C. P50,000 D. P50,138 10. 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 prots 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 prot 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? A. P39,600 B. P37,500 C. P36,000 D. P26,400