Junior Philippine Institute of Accountants

Baliwag Polytechnic College

Baliwag, Bulacan
Mock Exam Part 1
Name : Section:

Partnership Formation
Read and analyze the questions carefully. Strictly no erasure. Encircle your answer. You are given 1.5 hour to finish the
exam. 1 point each answer. (25 points)

1. On April 30, 2012, Aye, Bee and Cee formed a partnership by combining their separate business proprietorships.
Aye contributed cash of 75,000. Bee contributed property with a 54,000 carrying amount, a 60,000 original cost
and 120,000 fair value.the partnership accepted responsibility for the mortgage payable of 52,500 attached to
the property. Cee contributed equipment with a carrying amount of 45,000, 112,500 cost and 82,500 fair value.
Their profit and losses are to be shared equally but silent regarding capital contributions. Which partner has the
largest capital balance April 30, 2012?
A. Aye C. Cee
B. Bee D. All capital account balances are equal

2. On December 1, 2012 , Malou and Matt formed a partnership, agreeing to share for profits and losses in the
ratio 2:3 respectively. Malou invested a parcel of land that cost him 25,000. Matt invested 30,000 cash. The land
was sold for 50,000 on the same date three hours after formation of the partnership. How much should be the
capital balance of malou right after the formation?
A. 25,000 C. 60,000
B. 30,000 D. 50,000
3. On march 1, 2012 Katniss and Lucas formed a partnership with each contributing the following assets:
Katniss Lucas
Cash 300,000 700,000
Machinery 250,000 750,000
Building - 2250,000
F and F 100,000 -

The building is subject o a mortgage loan of 800,000 which is to be assumed by the partnership. Their P & L ratio
is 30% and 70%. On march 1, 2012 the balance in Lucas’s capital account should be?

A. 3700,000 C. 3050,000
B. 3140,000 D.2900,000

4. On March 1, 2012, Chesca and Gabee decide to combine their businesses and form a partnership. Their balance
sheets on march 1, before adjustments, showed the following:
Chesca Gabee

Cash 9,000 3,750

AR 18,500 13,500
Inventories 30,000 19,500
F and F, net 30,000 9,000
Office equip’t, net 11,500 2,750
Prepaid expenses 6,375 3,000
Total 105,375 51,500

Accounts payable 45,750 18,000

Capital 59,625 33,500
Total 105,375 51,500
 They agreed to have the ff. items recorded in their books:

1. Provide 2% allowance for doubtful accounts.

2. Chesca’s F and f should be 31,000 , while Gabee’s Office Equip’t is under depreciated by 250.
3. Rent expense incurred previously by Chesca was not yet recorded amounting to 1,000 while salary
expense incurred by Gabee was not also recorded amounting to 800.
4. The fair market value of inventory amounted to:
Chesca 29,500
Gabee 21,000

Compute the net (debit) credit adjustment for Chesca and Gabee:
A. 61,950 C. 65,550
B. 63,750 D. 63,950

5. The same info in no. 4 , compute the total liabilities after formation:
A. 157,985 C. 160,765
B.156,875 D.152,985

**Chicken ba? Well, let’s try it without choices.

6. On December 1, 2013, Carla and Clara joined a partnership. Carla contributed cash while Clara contributed
merchandise worth 25,000 and a second hand delivery truck currently valued at 50,000, but encumbered by one year
chattel mortgage note for 15,000. If initial capital balances are to conform to the profit sharing ratio 2:3, the amount of
cash contributed by Carla was
Required:

a. The capital balance of Clara on December 1, 2013.

b. The amount of cash contributed by Carla.
c. The total partnership assets on December 1, 2013.

7. Marie admits Nella as a partner in business. Just before the partnership’s formation, Marie’s books showed
the ff:
Cash 2,600
AR 12,000
M. inventory 18,000
Accounts payable 6,200
Marie, Capital 26,400
It was agreed that, for purposes of establishing Marie’s investment in the firm, the ff adjustments shall be
reflected:
 Allowance for bad debts of 2% should set up.
 M. inventory should be valued 20,200
 Prepaid expenses of 350 and accrued expenses of 400 should be recognized.
Required:
a. The adjusted capital of Marie.
b. Investment of Nella to secure 1/3 interest in the partnership.
c. Total liabilities of the partnership.

8. Taylor and Gaga formed a partnership. Taylor contributed 50,000 cash. Gaga contributed land and building he
purchased for 50,000 some time ago. His tax basis in the property is now 30,000 although it was recently appraised for
70,000. There is a mortgage payable attached to the building that the partnership will assume. What is the amount of
Gaga’s capital account after his contribution?
 9. Georgina and Solenn formed a partnership with each contributing the ff assets:
Georgina Solenn
Cash 30,000 70,000
Machine 25,000 75,000
Building ---- 225,000
F and F 10,000 ----

The building is subject to mortgage payable of 80,000 which will not assumed by the partnership.
Their P and L ratio is 50:50. The balance on Solenn capital account should be?

10. the same info in no. 9 if the partnership assumed the mortgage payable the balance of Georgina’s capital
account should be?

Partnership Operations
1. Pabebe and Pabaebae are partners who share profits and losses in the ratio of 60%; 40%. Pabebe salary is
60,000 and 30,000 for Pabaebae. The partners are also paid on their average capital balances of 30,000 and
12,000. The profit and loss allocation is determined after deductions for the salary and interest payments. If
Pabaebae share in the residual income (income after salaries and interest) was 60,000 in 2012, what was the
partnership income?
a. 192,000
b. 345,000
c. 282,000
d. 387,000
2. The partnership has the ff accounting amounts:

Sales = 70,000
Cogs= 40,000
Operating Exp= 10,000
Salary allocations to partners=13 ,000
Interest paid to banks = 2,000
Partner’s withdrawal= 8,000

The partnership net income (loss) is:

a. 20,000
b. 18,000
c. 5000
d. (3000)
3. The partnership agreement of X,Y, and Z provides for the year-end allocation of net income in the following
order:
 First, X is to receive 10% of net income up to 200,000 and 20% over 200,000.
 Y and Z each are to receive 5% of the remaining income over 300,000.
 The balance of income is to be allocated equally mong the three partners.

The partnership’s 2011 net income was 500,000 before allocations to partners. What amount should be
allocated to X?

a. 202,000
b. 216,000
c. 206,000
d. 220,000
 4. Ba, Be and Bi are partners with average capital balances during 2012 of 360,000, 180,000 and 120,000. Partners
receive 10% interest on their average capital balances. After deducting salaries of 90,000 to Ba, and 60,000 to Bi
the residual P&L is divided equally. In 2012 the partnership sustained a 99,000 loss before interest and salaries
to partners. By what amount should Ba’s capital accounts change?
a. 21,000 increase
b. 33,000 decrease
c. 105,000 decrease
d. 126,000 increase
5. On January 1, 2012 , D and E decided to form a partnership. At the end of the year, the partnership made a net
income of 120,000. The capital accounts of the partnership show the transactions.
D, capital E, capital

Jan.1 40,000 25,000

April1 (5,000) ---
June 1 --- 10,000
Aug1. 10,000 ---
Sept1 --- (3000)
Oct1 5,000 (1,000)
Dec1 4,000 5,000

Assuming that an interest of 20% per annum is given on average capital and the balance of the profits is
allocated equally, the allocation of profits should be:

a. D 60,000; E 59,400
b. D 61,200; E 58,800
c. D 67200; E 52,800
d. D 68,800 ; E 51,200
6. Kat, Ri, Na are partners with average capital balances during 2007 of 945,000 , 477,300 and 324,700. The
partners receive 10% interest on their average balances, salaries of 266,000to Ri and 199,800 to Kat, any
residual profit is divided in the raio of 10:30:40 Ri, Kat & Na.

If the partnership had a net loss of 269,000, the share of Na and Kat in the profit is?

7. If the partnership had a profit of 102,000, the share of Ri and Kat is?

8. Fernan,Bernard, Ramil & Wenzcarlo are partners. Their capital accounts during the year 2012 were s follows:

Capital, Fernan Capital, Ramil

9/1 120,000 1/7 800,000 3/3 180,000 1/7 1200,000

4/14 160,000 7/3 140,000
11/1 60,000 9/28 100,000

Capital, Wenzcarlo Capital, Bernard

11/2 75,000 1/7 600,000 5/16 200,000 1/7 1500,000
` 12/5 108,000 6/12 210,000 12/12 550,000 2/21 60,000
12/20 340,000 7/31 140,000
Assumption 1. Interest at 9% is to be allowed on the beginning capital of each partner. Salaries of 145,000;
110,000;170,000;165,000 to fernan, wenzcarlo,Bernard and ramil. Residual income is to be divided in the ratio if 2:3:1:4
to Bernard, wenzcarlo, fernan, ramil. Profit for the year is 1140,000.
Total share of wenzcarlo in the profit is?

9. Total share of Bernard and Ramil in the profit are? ____________________________________

10. Ending balance of Bernard? _________________________________________________

11. Share of Fernan in the remaining income? ___________________________________________

12. Total capital of Wenzcarlo and fernan after allocation of profit? __________________________

Assumption 2. Interest at 12% is to be allowed on the beginning capital of each partner. Salaries of 115,000 and 200,000
to fernan and wenzcarlo respectively. Bonus of 15% and 20% after interest and salaries to Ramil and Bernard. Residual
income(loss) is to be divided equally among the partners. Net loss for the year is 1450,000.

13. Bonus receive by Ramil is? ______________________________________________

14. Total share of Bernard in the loss? ________________________________________

15. Total capital balance of Fernan and Ramil after allocation? ____________________

** You cannot cross the ocean unless you’re not afraid to lose sight of the shore.**

Prepared by:
Aizelle Chesca Timbang - VPNA 
 Junior Philippine Institute of Accountants
Baliwag Polytechnic College
Baliwag, Bulacan
Basic Accounting Refresher Part 1
Name: Section:

Read carefully and answer by heart. Write the correct answer in the space provided.

T-1 Identify the accounting term that is best described by the following sentences.

1. The business is regarded as having a separate and distinct personality from its owner.

2. Resources or things owned by a business.

3. Accountants generally choose a method or procedure that will yield a lower amount of
income and asset value.

4. This principle states that the acquired asset should be recorded at their actual or
historical value.

5. The concept requiring that at least two accounts are affected by each business
transaction.
6. The standard basic accounting equation.

7. Financial reporting is concerned only with information that is significant enough to

affect valuations and decisions.
8. Under this concept, money is used as the unit of measure in preparing the various
financial reports of the company.
9. A debt that is secured by a collateral in the form of business property such as land,
buildings and equipment.
10. The report that shows the worth of a business in terms of assets, debts and the
investment of the owner.

T-2 TRUE OR FALSE.

1. Accounting is often described as the “language of business” because it is the medium of

communication between a business firm and other parties.
2. Friar Luca Pacioli was the author of the first known book of double entry bookkeeping,
3. Accounting deals primarily with the step by step accomplishments of the accounting
cycle.
4. Internal financial statement users are those who are directly involved in the business
organization.
5. Accounting provides a vital source in supplying information to decision makers who will
make decisions for the conduct of business and its various economic activities.
6. A manufacturing business is engaged in the processing of products that are intended for
sale.
7. The FRSC is the body that formulates the accounting standards in the Philippines.
 8. The three elements that report the financial status of an entity are assets, liabilities and
income.
9. The relationship among assets, liabilities and equity is expressed by the accounting
equation: assets= liabilities + equity
10. Any two elements of the basic accounting equation may be rearranged
algebraically to determine the peso amount of the missing element.

T-3 Arrange the following steps in the accounting cycle.

STEP #

_______Trial balance preparation.

_______Preparation of 10 column worksheet.

_______Posting journal entries to the ledger.

_______Journalizing and posting adjusting entries.

_______Preparing financial statements.

_______Balancing the accounts and preparing a post closing trial balance,

_______Analyzing the source documents.

_______Journalizing and posting reversing entries.

_______Journalizing and posting closing entries.

_______Journalizing transactions.

** Every accomplishment starts with a decision to try. **

Prepared by:
Aizelle Chesca Timbang - VPNA 
Operations- Answer key 14. (384,250)
15. 1386,500
1. C.
2. B. Formation – Answer Key
3. B. 1. C.
4. A. 2. D.
5. B. 3. D.
6. (422,280); (46,762.50) 4. C.
7. 246,417.50; 92,362.50 5. A.
8. 218,300 6. A. 60,000 B. 40,000 C. 115,000
9. 686,600 7. A. 28,310 B. 14,155 C. 6,600
10. 1291,200 8. 55,000
11. 18,100 9. 370,000
12. 2320,400 10. 65,000
13. 0

Basic Accounting Theories

Answers: T-2 Answers: T-3

Answers: T-1 1. T 4

1. Business entity 2.T 5

2. Assets 3.T 3
3. Conservatism 4.T 7
4. Cost principle
5. Double entry 5.T 6
bookkeeping
6. A=L+OE 6.T 9
7. Materiality 7.F 1
8. Monetary unit
9. Mortgage payable 8.F 10
10. Balance sheet
9.T 8

10.T 2
 Junior Philippine Institute of Accountants
Baliwag Polytechnic College
Baliwag, Bulacan
AQE Reviewer No. 1

I. Multiple Choice - Theories (Encircle the correct answer)

1. The legal characteristic of a partnership whereby each partner is an agent of the partnership and is able to bind the partnership to contracts within the
normal scope of the partnership business is known as:

a. unlimited liability c. co-ownership

b. mutual contribution d. mutual agency
2. The dissolution of a business partnership by 1) selling noncash assets for cash and allocating the gain or loss according to partners' income-and-loss ratio 2)
paying liabilities 3) distributing remaining cash to partners based on capital balances is called partnership __________.

a. Realization c. Formation
b. Liquidation d. Incorporation
3. Which of the following statements is correct?

a. Salaries to partners and interest on partners' capital are expenses of the partnership.
b. Salaries to partners are expenses of the partnership but interest on partners' capital is not.
c. Interest on partners' capital is an expense of the partnership but salaries are not.
d. Neither salaries to partners nor interest on partners' capital are expenses of the partnership.

4. The admission of a partner by purchase of an existing partner's interest in the firm:

a. increases total partnership assets.

b. increases total partnership capital.
c. is a personal transaction between an existing partner and the new partner
d. can result in a bonus to the other partners.

5. The admission of a partner by an investment of assets in a partnership:

a. will not affect the net assets of the partnership.

b. increases total partnership capital.
c. is a personal transaction between an existing partner and the new partner.
d. does not require an entry in the partnership records.

6. When a new partner's capital credit is less than his/her investment in the firm, the difference is allocated to the old partners:

a. equally. c. on the basis of their original investments.

b. on the basis of their income ratios. d. in proportion to their capital balances
.

7. The bonus that results when a new partner's capital credit is greater than his/her investment in the firm is recorded by debiting:

a. bonus expense.
b. the existing partners' capital accounts.
c. the existing partners' drawing accounts.
d. the new partner's capital account.

8. The first step in the liquidation of a partnership is to:

a. allocate gain/loss on realization to the partners.

b. distribute remaining cash to partners.
c. pay partnership liabilities.
d. sell noncash assets and recognize a gain or loss on realization.
9. When a partnership is liquidated, the remaining cash should be distributed to partners:

a. equally..
b. on the basis of their income-sharing ratios.
c. on the basis of their capital balances
d. on the basis of their original investments.

10. If a partner with a capital deficiency is unable to pay the amount owed to the partnership, the deficiency is allocated to the partners with credit balances:

a. equally.
b. on the basis of their income ratios.
c. on the basis of their capital balances
d. on the basis of their original investments.

II. Identification (Write your answers on the space provided) (10 pts)

______________1. One who does not take active part in the business of the partnership though may be known as a partner.
______________2. It is the amount of capital or equity transferred by one partner to another partner.
______________3. It is the total capital of the partnership after considering the capital credits given to each of the partners.
______________4. It represents the portion of a partner’s interest which should remain available to absorb possible future losses.
______________5. This program is prepared at the start of the liquidation process which will help the partners to project when they can expect to be included in the
cash distribution.
______________6. The conversion of non-cash assets into cash.
______________7. The excess of a partner’s share in losses over the partner’s capital credit balance.
______________8. One who does not take active part in the business of the partnership and is not known as a partner.
______________9. One who is actually not a partner but who represents himself as one.
______________10. A partnership that has complied with all the legal requirements for its establishment.

II. Straight Problem – Show your solution in a separate worksheet (10 pts)
The condensed balance sheet of RCA Partnership just before the liquidation is shown below:
Pokemon Partnership
Statement of Financial Position
December 31, 2013
Assets Liabilities and Capital

Cash P 84,000 Accounts payable P 74,000

Other Assets 266,000 Meow, Loan 6,000

Victini, Loan 10,000

Pikachu, Capital 120,000

Meow, Capital 50,000

Victini, Capital 90,000

Total Assets P 350,000 Total Liabilities and Capital P 350,000

The partners shared profit and loss in the ratio of 4:4:2, respectively. The other assets were sold for P 110,000. The partner with capital deficiency is insolvent.

Required:

1. Prepare a statement of liquidation.

2. Prepare journal entries to record the liquidation process.
IV. Multiple Choice - Problems (Encircle the correct answer- show your solution in a separate worksheet)

1. On March 1, 2013, PP and QQ decide to combine their business and form a partnership. Their balance sheets on March 1, before adjustments,
showed the following:
PP QQ
Cash 9,000 3,750
Accounts Receivable 18,500 13,500
Inventories 30,000 19,500
Furnitures and fixtures (net) 30,000 9,000
Office Equipment (net) 11,500 2,750
Prepaid Expenses 6,375 3,000
Total 105,375 51,500
Accounts Payable 45,750 18,000
Capital 59,625 33,500
Total 105,375 51,500

They agreed to have the following items recorded in their books:

1. Provide 2% allowance for doubtful accounts.

2. PP’s furniture and fixtures should be P31,000, while QQ’s office equipment is under-depreciated by P250.
3. Rent Expense incurred previously by PP was not yet recorded amounting to P1,000, while salary expense incurred by QQ was not also
recorded amounting to P800.
4. The fair market value of inventory amounted to:
For PP…………………………………………………..P29,500
For QQ………………………………………………….P21,000

Compute for the net (debit) credit adjustment for PP and QQ:
PP QQ
a) 2,870 2,820
b) (2,870) (2,820)
c) (870) 180
d) 870 (180)

2. The same information in number 1, compute the total liabilities after formation.

a) 61,950
b) 63,750
c) 65,550
d) 63,950

3. The same information in number 1, compute for the total assets after formation.

a) 157,985
b) 156,875
c) 160,765
d) 152,985

4. Yaya Dub and Alden are considering forming a partnership whereby profits will be allocated through the use of salaries and bonuses. Bonuses will
be 10 % of net income after total salaries and bonuses. Yaya Dub will receive a salary of P30,000 and a bonus. Alden has the option of receiving a
salary of P40,000 and a 10% bonus or simply receiving salary of P52,000. Both partners will receive the same amount of bonus.

Determine the level of net income that would be necessary so that Alden would be indifferent to the profit sharing option selected.

a) 240,000 c) 94,000
b) 300,000 d) 334,000

5. The partnership agreement of Anne and Vhong provides that interest at 10% per year is to be credited to each partner on the basis of weighted-
average capital balances. A summary of Vhong capital for the year ended December 31, 2013 is as follows:
Balance, January 1…………………………………………P 420,000
Additional investment, July 1……………………………… 120,000
Withdrawal, August 1………………………………………. (45,000)
Balance, December 31…………………………………….. 495,000
What amount of interest should be credited to Vhong’s capital account for 2013?

a) 45,740
b) 49,500
c) 46,125
d) 51,750
 6. Nidora, Tidora and Isadora are partners with average capital balances during 2013of P472,500, P238,650 and P162,350, respectively. The partners
receive 10% interest on their average capital balances; after deducting salaries of P122,325 to Nidora and P82,625 to Isadora, the residual profits
or loss is divided equally. In 2013, the partnership had a net loss of P125,624 before the interest and salaries to partners.

By what amount should Nidora’s and Isadora’s capital account change – increase /(decrease)?
AA CC
a) 30,267 (40,448)
b) 29,476 17,536
c) (40,844) 31,235
d) 28,358 32,458

7. The same information in number 6, except the partnership had a loss of P125,624 after the interest and salaries to partners, by what amount should
Tidora’s capital account change – increase / (decrease)?.

a) (115,443)
b) 23,865
c) (41,875)
d) (18,010)

8. On June 30, 2013,the balance sheet of Fairy Tail Marketing, a partnership, is summarized as follows:
Sundry Assets…………….P 150,000
Natsu, Capital……………… 90,000
Lucy, Capital……………… 60,000
Natsu and Lucy share profit and losses at a 60:40 ratio, respectively. They agreed to take in Gray as a new partner, who purchases 1/8 interest of
Natsu and Lucy for P25,000. What is the amount of Gray’s capital to be taken up in the partnership books if book value method is used?

a) 12,500
b) 18,750
c) 25,000
d) 31,250

9. Daimler contributed P 24,000 and Robin contributed P48,000 to form partnership, and they agreed to share profits in the ratio of their original
capital contributions. During the first year of operations, they made a profit of P 16,290; Daimler withdrew P5,050 and Robin P8,000. At the start
of the following year, they agreed to admit Michael into the partnership. He was to receive a one-fourth interest in the capital and profits upon
payment of P30,000 to Daimler and Robin, whose capital accounts were to be reduced by transfers to Michael’s capital account.
How much gain was realized by Daimler and Robin?

a.) 11,190
b.) 12,190
c.) 10,190
d.) 0

10. The December 31,2013, balance sheet of BB, CC, and DD partnership is summarized as follows:
Cash 100,000 CC, Loan 100,000
Other Assets, at cost 500,000 BB, Capital 100,000
CC, Capital 200,000
DD, Capital 200,000
600,000 600,000
The partner’s share profits and losses as follows : BB, 20%; CC, 30%; DD, 50%, CC is retiring from the partnership and the partners have agreed that
“other assets” should be adjusted to their fair values of P600,000 at December 31,2013, they further agree that CC will receive P244,000 cash for his
partnership interest exclusive of the loan, which is to be paid in full, and that no goodwill implied by CC’s payment will be recorded.
How much bonus did CC received?

a.) 0
b.) 12,000
c.) 14,000
d.) 16,000

11. After CC’s retirement , the capital balances of BB and DD, respectively, will be:

a.) 116,000 and 240,000

b.) 101,714 and 254,286
c.) 100,000 and 200,000
d.) 73,143 and 182,857

12. Duterte, Miriam and Mar, partners to a firm , have capital balances of P11,200, P13,000, and P5,800, respectively, and share profits in the ratio of
4:2:1. Prepare a schedule showing how available cash will be given to the partners as it becomes available. Who among the partners shall be paid
first with an available cash of P1,400?

a.) Miriam c.) Mar

b.) No one d.) Duterte
 13. As of December 31, 2008, the books of Night Raid Assassin Partnership showed Capital balances of: Tatsumi P40,000; Akame, P25,000; Mine,
P5,000. The partners’ profit and loss ratio was 3:2:1, respectively. The partners decided to liquidate and they sold all non-cash assets for P37,000.
After settlement of all liabilities amounting to P12,000, they still have cash of P28,000 left for distribution. Assuming that any capital deficiency is
uncollectible, the share of Tatsumi in the distribution of the P28,000 cash would be:

a.) 17,800
b.) 18,000
c.) 19,000
d.) 17,000

14. The balance sheet of the partnership of Precious, Janet and Michelle who share profit and losses in the respective ratio of 5:3:2, follows:
Cash 30,000 Lialbilities 50,000
Other Assets, at cost 320,000 Precious, Capital 80,000
Janet, Capital 115,000
Michelle, Capital 105,000
350,000 350,000
The partners agreed to liquidate the partnership by installments. Immediately, there was a realization of P100,000 cash from selling other assets
with books value of P150,000. Of the cash available, the priority is the payment of the liabilities and the balance is to be distributed to the partners.
How should the remaining cash be distributed to Precious, Janet and Michelle, respectively?

a.) P50,000; 30,000 and 20,000

b.) P40,000; 24,000 and 16,000
c.) P-0-; 31,000 and 49,000
d.) P-0-; 48,000 and 32,000

15. Using the same information in number 14, how much cash should Michelle receive assuming the remaining assets were sold for P140,000?

a.) 0
b.) 50,000
c.) 60,000
d.) 40,000

__________________________________________________________________________________________________
Good luck sa battery test niyo. Some problems are really long and complicated so when you encounter things like
that, take this a piece of advice. You should skip it first then proceed to simpler problems. Remind yourself that
whether it’s easy or difficult, it only counts as one point on your exam or battery test except for the domino
problems. Don’t waste time. Learn to maximize it.

P.S. Scan first the whole test paper before you proceed answering problems. Malay niyo nasa dulo yung mga
madadaling problems di ba. Huwag malungkot kung sakali mang walang lumabas sa mga reviewer na naprovide
namin. At least napaghandaan at nasanay yung analytical skills nyo sa iba’t ibang problems. Kaya niyo yan.
Magpray lagi. God bless you BSA 2A. I’ll try to provide more reviewers sa mga susunod na araw. Kapit lang. Wag
susuko.

----VP FOR ACADS (VPA)

 Key Answer For AQE Reviewer No. 1
I. Multiple Choice - Theories 6 b
1 d 7 b
2 b 8 d
3 d 9 c
4 c 10 b
5 b
II. Identification
1 Silent Partner 6 realization
2 Bonus 7 capital deficiency
3 Agreed Capital/Total Agreed Capital 8 Dormant partner
4 Restricted Interest 9 Nominal partner / partner by estoppel
5 Cash Priority Program 10 de jure partnership
III.Straight Problems
Pokemon Partnership
Statement of Liquidation
December 31, 2013

Other Accounts Meow, Victini, Pikachu, Meow, Victini,

Cash
Assets Payable Loan Loan Capital Capital Capital

Balances before realization 84,000 266,000 74,000 6,000 10,000 120,000 50,000 90,000

Sales of Assets and distribution of losses 110,000 (266,000) (62,400) (62,400) (31,200)

Balances 194,000 - 74,000 6,000 10,000 57,600 (12,400) 58,800

Payment of Liabilities (74,000) (74,000)

Balances 120,000 6,000 10,000 57,600 (12,400) 58,800

Offset of Meow, loan (6,000) 6,000

Balances 120,000 - 10,000 57,600 (6,400) 58,800

Addt'l loss for Pikachu & Victini (4,267) 6,400 (2,133)

Balances 120,000 10,000 53,333 - 56,667

Cash distribution (120,000) (10,000) (53,333) (56,667)

Balances - - - - - - - -

a. Cash 110,000 d. Pikachu, Capital 4,267

Pikachu, Capital 62,400 Victini, Capital 2,133

Meow, Capital 62,400 Meow, Capital 6,400

Victini, Capital 31,200

Victini,
e. Loan 10,000

b. Accounts Payable 74,000 Pikachu, Capital 53,333

Cash 74,000 Victini, Capital 56,667

Cash 120,000
Meow,
c. Loan 6,000

Meow, Capital 6,000

Key Answer For AQE Reviewer No. 1 (Continuation)
I. Multiple Choice - Problems
1 c
2 c
3 a
4 d
5 c
6 a
7 d
8 b
9 a
10 c
11 a
12 a
13 a
14 c
15 d