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    Partnership

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    Nyra Beldoro
    1. Giana and Francine formed a partnership, with Giana contributing cash and assets worth $27,500 and Francine contributing cash, assets, and a building worth $157,000 and assuming a $40,000 mortgage on the building. 2. Bentot and Poker formed a partnership, with Bentot contributing assets of $750,000 and liabilities of $50,000, and Poker contributing assets of $1,130,000 and liabilities of $345,000. Adjustments were made to their contributions. 3. The NYY partnership contract stipulated that income would first go to a 20% bonus for Jeter, then 15% interest on capital accounts

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    Partnership

    Uploaded by

    Nyra Beldoro
    120 views1 page
    1. Giana and Francine formed a partnership, with Giana contributing cash and assets worth $27,500 and Francine contributing cash, assets, and a building worth $157,000 and assuming a $40,000 mortgage on the building. 2. Bentot and Poker formed a partnership, with Bentot contributing assets of $750,000 and liabilities of $50,000, and Poker contributing assets of $1,130,000 and liabilities of $345,000. Adjustments were made to their contributions. 3. The NYY partnership contract stipulated that income would first go to a 20% bonus for Jeter, then 15% interest on capital accounts

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    Partnership problems

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    partnership

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    1. Giana and Francine formed a partnership, with Giana contributing cash and assets worth $27,500 and Francine contributing cash, assets, and a building worth $157,000 and assuming a $40,000 mortgage on the building. 2. Bentot and Poker formed a partnership, with Bentot contributing assets of $750,000 and liabilities of $50,000, and Poker contributing assets of $1,130,000 and liabilities of $345,000. Adjustments were made to their contributions. 3. The NYY partnership contract stipulated that income would first go to a 20% bonus for Jeter, then 15% interest on capital accounts

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    120 views1 page

    Partnership

    Uploaded by

    Nyra Beldoro
    1. Giana and Francine formed a partnership, with Giana contributing cash and assets worth $27,500 and Francine contributing cash, assets, and a building worth $157,000 and assuming a $40,000 mortgage on the building. 2. Bentot and Poker formed a partnership, with Bentot contributing assets of $750,000 and liabilities of $50,000, and Poker contributing assets of $1,130,000 and liabilities of $345,000. Adjustments were made to their contributions. 3. The NYY partnership contract stipulated that income would first go to a 20% bonus for Jeter, then 15% interest on capital accounts

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    of 1

    ACCOUNTING REFRESHER COURSE 1

    ADVANCE FINANCIAL ACCOUNTING AND REPORTING

    PARTNERSHIP
    Partnership Formation
    1. On June 1, 2018, Giana and Francine formed a partnership with each contributing the following: Giana
    contributed cash of P15,000, equipment with a cost of P20,000 and a fair market value of P12,500,
    furniture with an acquisition cost of P4,500 and a fair market value of P5,000. Francine invested cash
    of P35,000, equipment with a book value of P32,000 and a realizable value of P37,500 and building
    with a realizable value of P112,500.
    The building contributed by Francine is subject to a mortgage loan of P40,000, which is to be assumed
    by the partnership. Profit and loss are shared in the ratio of 3:7, respectively.
    How much is the balance of Francine capital on June 1, 2018?
    a. P145,000 b. P152,000 c. P157,000 d. P185,000
    2. On March 1, 2017, Bentot and Poker pooled their assets to form a partnership, with the firm to take over
    their business assets and liabilities. Partner’s capitals are to be based on net assets transferred after the
    following adjustments while profits and losses are to be shared equally. Poker's inventory is to be
    increased by P40,000, and allowance for doubtful accounts of P10,000 and P15,000 are to be set up in
    the books of Bentot and Poker, respectively, and accounts payable of P40,000 is to be recognized in
    Bentot's books. The individual trial balances before adjustments, follow:
    BENTOT POKER
    Asset P750,000 P1,130,000
    Liabilities 50,000 345,000
    What is the balance of Bentot after the adjustments?
    a. P650,000 b. P687,500 c. P750,000 d. P760,000
    Partnership Operation
    1. The partnership contract of the NYY Partnership provided for the division of net income or losses in the
    following manner:
    a. Bonus of 20% of income before the bonus to Jeter
    b. Interest of 15% on average capital account balance to each partner.
    c. Remaining income or loss, equally to each partner.
    Net income of Jeter, Cano and Rivera for 2017 was P90,000, and the average account balances of the
    partner were: Jeter, P100,000; Cano, P200,000; and Rivera, P300,000. How much of the P90,000
    partnership profit for 2017 should be distributed to Jeter?
    a. P27,000 b. P6,000 c. P33,000 d. P39,000

    Partnership Liquidation
    1. Manny and Money are partners with capital & loan balances, & profit and loss ratios as follows:
    Capital Loan Profit & Loss
    Manny P24,500 P4,000 60%
    Money 15,500 3,500 40%
    The partners decide to liquidate the partnership. The firm's liabilities amounted to P36,000 including
    partners loan. After realization of assets, cash on hand amounts to P37,500. In the settlement to partners,
    how much will Money receive?
    a. P15,000 b. P1,000 c. P3,600 d. P19,000

    2. The following balance sheet summary, together with residual profit-sharing ratios, was developed on
    April 1, 2018, when the Dido, Kiko, and Pido partnership began its liquidation.

    ASSETS LIABILITIES & EQUITY


    Cash P140,000 Liabilities P60,000
    Accounts receivable 60,000 Loan from Kiko 20,000
    Inventories 85,000 Dido, Capital (20%) 75,000
    Plant assets-net 200,000 Kiko, Capital (40%) 200,000
    Loan to Dido 25,000 Pido, Capital (40%) 155,000
    Total Assets P510,000 Total Liab. & PE P510,000
    If available cash except for P5,000 contingency fund is distributed immediately, Dido, Kiko, and Pido,
    respectively, should receive:
    a. P-0- , P80,000, and P10,000 c. P-0-, P70,000, and P5,000
    b. P16,000, P32,000, and P32,000 d. P-0-, P72,500, and P7,500

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