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WorksheetsPARTNERSHIP - Basic Considerations and Formation
Total questions: 10
Worksheet time: 5mins
Two sole proprietors and an individual can form a partnership.
FALSE
TRUE
A stipulation that includes all partners in the profit sharing is null and void.
TRUE
FALSE
A characteristic of a partnership that is shown in this scenario:
Hofstadter purchased merchandise from supplier Kripke without the knowledge of partners Cooper, Koothrappali and Wolowitz. The merchandise bought would be part of the partnership's inventory and later on sold to customers.
(a)
A partnership's juridical personality commences from...
the first day of business of the partnership
the execution of the articles of partnership
the issuance of certificate of incorporation by the Securities and Exchange Commission
the time of agreement by the partners
Missy is to contribute a plot of land to the Cooper Partnership.
- Missy, and partners Georgie and Sheldon, agree that the land is to be valued at P180,000.
- A neighboring lot with similar dimensions is for sale at P210,000 (fair market value).
- The local assessor's office appraises the land at P200,000.
Q: At what amount will the land be recognized in the books of the partnership?
P180,000
P210,000
P200,000
None of the above.
Partner's investments may include which of the following?
Cash
Non-cash assets
Non-cash assets with liabilities to be assumed
All of the above
Only a and b
A partner invested into a partnership a building with a P250,000 carrying value and P400,000 fair market value. The related mortgage payable of P125,000 was assumed by the partnership. As a result of the investment, the partner's capital account will be credited for
P125,000
P275,000
P250,000
P400,000
The partner's capital account is credited in the following cases except when it involves the recording of the
additional investment
original investment
share in profit
debit balance of the drawing account at the end of the period
Jake Peralta, Amy Santiago and Ray Holt are to form partnership Brooklyn Nine-Nine. Peralta, Santiago and Holt will contribute P150,000, P120,000 and P200,000 cash respectively. Santiago will also be contributing a building with a carrying value of P220,000, a market value of P280,000, and an attached mortgage of P50,000, which will be assumed by the partnership. Upon partnership formation, which of the following entries are recorded in the books of the partnership? (You can choose more than one)
Cr. Santiago, Capital P350,000
Dr. CASH P470,000
Dr. BUILDING P280,000
Cr. MORTGAGE PAYABLE P50,000
Bonus THREE (3) points!
Select choice C. Again, simply select choice C to get three points. C, okaaayyy???
A
B
C
D
