Worksheetsfar
Total questions: 29
Worksheet time: 17mins
POWER has a beginning inventory of ₱340,000. During the period POWER purchased inventories costing ₱990,000. Freight paid on the purchase totaled ₱40,000. The ending inventory was ₱360,000. If the net sales were ₱1,200,000, how much is the gross profit?
What is the total capital of the partnership after the admission of NN?
P 590,000.00
P 420,000.00
P 510,000.00
P 410,000.00
What is the total capital of the partnership after the admission of NN?
P 590,000.00
P 420,000.00
P 450,000.00
P 410,000.00
Statement I: Under the periodic inventory system, increases and decreases in inventory are recorded through the purchases, freight-in, purchase returns, and purchase discounts accounts. Statement II: Under the perpetual inventory system, cost of goods sold is debited when inventory is sold and credited when there is a sales return.
Only Statement I is true.
Only Statement II is true.
Both Statements are true.
Both Statements are false.
Statement I: If there is no agreed value on noncash assets contributed by the partners, these should be recorded in partnership books at their fair market values in the absence of agreed values. Statement II: When industry is contributed into the partnership, a memorandum entry is prepared.
Only Statement I is true.
Only Statement II is true.
Both Statements are true.
Both Statements are false.
When property other than cash is invested in a partnership, at what amount should the noncash property be credited to the contributing partner's capital account?
Fair value by the time of purchase
Contributing partner's original cost
Assessed valuation for property tax purposes
Fair value at the date of contribution
Which of the following statements is correct with respect to a limited partnership?
A limited partner may not be an unsecured creditor of the limited partnership.
A general partner may not also be limited partner at the same time.
A general partner may be a secured creditor of the limited partnership.
A limited partnership can be formed with limited liability for all partners.
Statement I: One advantage of a partnership over a corporate form of organization is the unlimited liability of partners. Statement II: A proprietorship has a limited life whereas a partnership may have an unlimited life.
Only Statement I is true.
Only Statement II is true.
Both Statements are true.
Both Statements are false.
Statement I: Partners' drawing accounts have normal credit balances. Statement II: The partner's capital account is debited for additional investments and credited for his share in profit.
Only Statement I is true.
Only Statement II is true.
Both Statements are true.
Both Statements are false.
Which of the following is not a component of the formula used to distribute income?
Salary allocation to those partners working.
After all other allocation, the remainder divided according to the profit and loss sharing ratio.
Interest on the average capital investments.
Interest on notes to partners.
Statement I: No entry is made to recognize cost of goods sold when inventory is sold under periodic inventory system. Statement II: Beginning inventory less Net purchases less Ending inventory equals Cost of goods sold.
Only Statement I is true.
Only Statement II is true.
Both Statements are true.
Both Statements are false.
Partners Dindo and Don share profits and losses equally after each has been credited in all circumstances with annual salary allowances of P30,000 and P24,000, respectively. Based on this agreement, in which of the following circumstances will Dindo benefit by P6,000 more than Don?
Only if the partnership has net income of P54,000 or more for the year.
Only if the partnership does not incur a loss for the year.
In all earnings or loss situation.
Only if the partnership has earnings of at least P6,000 for the year.
What is the total partnership capital after the retirement of the partner.
P 40,000.00
P 150,000.00
P 122,000.00
P 90,000.00
How much is to be credited to Dente, assuming Miranda is paid 20,000 in full settlement of his partnership interest?
P 9,000.00
P 4,500.00
P 1,600.00
P 3,000.00
Statement I: Each partner has a capital account and a drawing account. Statement II: A secret partner is one who does not take active part in the partnership business and is not known as a partner.
Only Statement I is true.
Only Statement II is true.
Both Statements are true.
Both Statements are false.
Which of the following results in dissolution of a partnership?
The contribution of additional assets to the partnership by an existing partner.
The receipt of a draw by an existing partner.
The winding up of the partnership and the distribution of remaining assets to the partners.
The withdrawal of a partner from a partnership.
Which of the following entry is correct?
Debit: Accounts Receivable, ₱120,000
Debit: Sales, ₱400,000
Credit: Merchandising Inventory, ₱120,000
Debit: Cost of Goods Sold, ₱400,000
The fact that salaries paid to partners are not a component of partnership income is indicative of
A departure from generally accepted accounting principles.
Being characteristic of the entity theory.
Being characteristic of the proprietary theory.
Why partnerships are characterized by unlimited liability.
If the partnership earned a net income of P269,000, what is the total share of Partner Z?
76,383.30
74,383.30
77,650
71,383.30
The Articles of Partnership of Genesis and Paul the following provisions were stipulated: I. Annual salary of P60,000 each. II. Bonus to Adam of 20% of the net income after partners' salaries, the bonus being treated as an expense. III. Balance to be divided equally. The partnership reported a net income of P360,000 after partners' salaries but before bonus. How much is the share of Eve in the profit?
60,000
90,000
150,000
210,000
DELL has a beginning inventory of ₱280,000. During the period DELL purchased inventories costing ₱890,000. Freight paid on the purchase totaled ₱30,000. If the ending inventory is ₱220,000, how much is the cost of goods sold?
P1,360,000
P980,000
P950,000
P920,000
The total partners' capital accounts was 110,000.00 before the recognition of partnership asset revaluation in preparation for the withdrawal of a partner whose profit and loss sharing ratio is 2/10. He was paid 28,000.00 by the firm in final settlement for his interest. The remaining partners' capital accounts, excluding their share of the asset revaluation, total 90,000.00 after his withdrawal. The total asset revaluation of the firm agreed upon was
P 8,000.00
P 20,000.00
P 28,000.00
P 40,000.00
Statement I: The partner's interest in the partnership assets is always proportionate to his share in the partnership's profit and losses. Statement II: When a partner invests assets in a partnership, the assets are recorded at the partner's book value.
Only Statement I is true.
Only Statement II is true.
Both Statements are true.
Both Statements are false.
Statement I: Ending inventory is added to Total Goods Available for Sale when computing for Cost of Goods Sold. Statement II: Under the perpetual inventory system, the business does not maintain records that show the running balances of inventory on hand and cost of goods sold as at any given point of time.
Only Statement I is true.
Only Statement II is true.
Both Statements are true.
Both Statements are false.
XYZ Partnership provided for the following in their distribution of profits and losses: First: X to reeive 10% of net income up to P100,000 and 20% of the amount in excess thereof. Then: Y and Z are each to receive 5% of the remaining income in excess of P150,000 after X's share. Finally: The balance is to be distributed equally to the three partners. If the partnership earned a net income of P250,000, what is the total share of Partner X?
100,000
108,000
110,000
130,000
Statement I: Entity A’s total goods available for sale during the period was ₱110. If the ending inventory is ₱20, cost of goods sold must be ₱130. Statement II: One day, you decided to become a businessman. You bought 10 bananas from Mrs. Monkey for ₱1 apiece. You marked-up the bananas to sell for ₱5 apiece. At the end of the day, you have two bananas left. Your gross profit must be ₱32.
Only Statement I is true.
Only Statement II is true.
Both Statements are true.
Both Statements are false.
Nuqui, Dente, and Miranda share partnership profits in the ratio of 2:3:5. On September 30, Miranda opted to retire from the partnership. The capital balances on this date follow: Nuqui, Capital25,000.00 Dente, Capital40,000.00 Miranda, Capital35,000.00 How much is to be debited from Nuqui, assuming Miranda is paid 39,000 in full settlement of his partnership interest?
P 4,000.00
P 800.00
P 1,600.00
P 3,000.00
A partnership has the following accounting amounts: Sales700,000.00 Cost of goods sold400,000.00 Operating expenses100,000.00 Salary allocations to partners130,000.00 Interest paid to banks20,000.00 Partners' drawings80,000.00 What is the partnership net income (loss)?
200,000
180,000
50,000
(30,000)
Jorlyn is trying to decide whether to accept a salary of P40,000 or salary of P25,000 plus a bonus of 10% of net income after salaries and bonus as a means of allocating profit among partners. Salaries traceable to the other partners are estimated to be P100,000. What amount of income would be necessary so that Jorlyn would consider choices to be equal?
165,000
290,000
265,000
305,000
