Partnership (Problem)

B and R are partners who share profits and losses in the ratio of 6:4, respectively. On May 1, 2003, their respective capital accounts were as follows: B - P60,000, R - P50,000. On that date, L was admitted as a partner with 1/3 interest capital and profits for an investment of P40,000. The new partnership began with total capital of P150,000. L's capital account was credited equal to her proportionate share in the partnership new assets. Immediately after L's admission, B's capital should be:

• 50,000

• 54,000

• 56,000

• 60,000

K and P are partners with capital balances of P60,000 and P20,000, respectively. Profits and losses are divided in a ratio of 60:40. K and P decided to form a new partnership with G, who invested land valued at P15,000 for a 20% capital interest in the new partnership. G's cost of the land was P12,000. The partnership elected to use the bonus method to record the admission of G into the partnership. G's capital account should be created for:

• 12,000

• 15,000

• 16,000

• 19,000

On June 30, 2003, the condensed balance sheet for the partnership of E, F, and G, together with their respective profit and loss sharing percentages were as follows:

Assets, net of liabilities 320,000

E, Capital (50%) 160,000

F, Capital (30%) 96,000

G, Capital (20%) 64,000

TOTAL 320,000

E decided to retire from the partnership and by mutual agreement is to be paid P180,000 out of partnership funds for his interest. No goodwill is to be recorded. After E's retirement, what are the capital balances of the other partners?

• F - 84,000

  G - 56,000

• F - 102,000

  G - 68,000

• F - 108,000

  G - 72,000

• F - 120,000

  G - 80,000

On June 30, 2003, the condensed balance sheet for the partnership of E, F, and G, together with their respective profit and loss sharing percentages were as follows:

Assets, net of liabilities 320,000

E, Capital (50%) 160,000

F, Capital (30%) 96,000

G, Capital (20%) 64,000

TOTAL 320,000

Assume instead that E remains in the partnership and that H is admitted as a new partner with a 25% interest in the capital of the new partnership for a cash payment of P140,000. The bonus method shall be used to record the admission of H. Immediately after admission of H, E's capital account balance should be:

• 280,000

• 172,500

• 160,000

• 140,000

The following condensed balance sheet is presented for the partnership of A and B, who share profits and losses in the ratio of 60:40, respectively:

Cash 45,000

Other Assets 625,000

B, Loan 30,000

Total 700,000

Accounts Payable 120,000

A, Capital 348,000

B, Capital 232,000

Total 700,000

The assets and liabilities are fairly valued on the balance sheet. A and B decided to admit C as a new partner with a 20% interest. No goodwill or bonus is to be recorded. What amount should C contribute in cash or other assets?

• 110,000

• 116,000

• 140,000

• 145,000

The following condensed balance sheet is presented for the partnership of A and B, who share profits and losses in the ratio of 60:40, respectively:

Cash 45,000

Other Assets 625,000

B, Loan 30,000

Total 700,000

Accounts Payable 120,000

A, Capital 348,000

B, Capital 232,000

Total 700,000

Instead of admitting a new partner, A and B decided to liquidate the partnership. If the other assets are sold for P500,000, what amount of the available cash should be distributed to A?

• 255,000

• 273,000

• 327,000

• 348,000

The statement of financial position of the partnership of A, B, and C shows the following information:

Cash 22,400

Other Assets 212,000

Total 234,400

Liabilities 38,400

A, Capital (50%) 76,000

B, Capital (25%) 64,000

C, Capital (25%) 56,000

Total 234,400

The partners realized P56,000 from the first installment sale of non-cash assets with a total carrying amount of P120,000. How much did B receive from the partial liquidation?

• 25,000

• 24,000

• 16,000

• 0

The statement of financial position of the partnership of A, B, and C shows the following information:

Cash 40,000

Other Assets 720,000

Total 760,000

Liabilities 300,000

B, Loan 64,000

C, Loan 20,000

A, Capital (50%) 250,000

B, Capital (25%) 86,000

C, Capital (25%) 40,000

Total 760,000

The non-cash assets are sold for P320,000. Partner C is the only solvent partner. In the settlement of the partners' claims, how much additional contribution is required of Partner C?

• 50,000

• 30,000

• 20,000

• None

The equity section of the statement of financial position of the partnership of A, B, and C shows the following information:

A, Capital (40%) 64,000

B, Capital (40%) 104,000

C, Capital (20%) 76,800

Total 244,800

Non-cash assets are sold in installments. Cash distributions are made to the partners as cash becomes available. In the second sale of non-cash assets, the partners received the same amount of cash in the distribution. In the third sale of non-cash assets, the amount of cash available for distribution is P100,000. The carrying amount of the remaining non-cash asset is P260,000. Under the cash priority program, how much cash is distributed to B in the third installment payment?

• 40,000

• 38,400

• 28,200

• 0

The partners' capital accounts in AB Partnership before the admission of a new partner are as follows:

A, Capital 200,000 60%

B, Capital 120,000 40%

320,000

C purchases 20% interest in the partnership from A for P120,000. How much is the capital balance of A after the admission of C?

• 133,333

• 24,000

• 96,000

• 148,000