a " 2 PA REVIEW SCHOOL OF THE PHILIPPINES MANILA | ADVANCED FINANCL \ " AL, ‘ First Preboara Exons ACCOUNTING ANDREBORTING Sunday, February 11, 2018 | 3:30 pam to 6:30 p.m. Numbers 1 and 2 AB ‘ . pea cond oem ABC Partnership. It was agréed that A will contribute an equipment with P1200000 0 ,000 with historical cost of P1,600,000 and accumulated depreciation of 4 lay after the partnership formation, the equipment was sold for P 600,000. i i pam Contribute a fand and building with carying amount of P2,400,000 and fair value of P3,000,000 « land and building are subject to a mortgage payable dmounting to P600,000 to be assumed by the Partnership. The partners agreed that B will have 60% capital interest in the partnership. The partners also agreed that C vll contribute sufficient cash tothe payership. 1. What is the total agreed capitalization of the ABC Partnership? A. 3,000,000 1 B. 4,000,000 ©. 5,000,000 D. 6,060,000 A. 1,090,000 B. 1,200,000 C. 1,400,000 | 2. What isthe cash to be contributed by C in the ABC Pestneship? | \ D, 1,600,000 | i Numbers 3, 4, and 5 On January 1. 2018, A, B and C formed ABC Partnérship with original capital contribution’ of 600,000, P1,000,000 and PAU0,009. As appoinced as managing pare During 2018, A, B and C made additional investmenfs of P1,000,000, P400,000 and P600,000, respectively, At the end of 2018, A, B and C made die ings of P400,000, P200,000 and P800,000, respectively. At the end of 2018 the capital tulacee of @ is reported t P640,000. The profit or loss agreement of the partners is as follows: | 10% interest on original capital contribution of the partners. Quarterly salary of P80,000 snd P20,000 for A and B, respectively. Bonus to A equivalent to 20% of Net Income after interest and salary to all partners Remainder is to be distributed equally among the partners. 3. What is the partnership profit for the year ended December 31, 20187 A. 1,809,000 B. 2,049,000 C. 2,100,000 D. 000 4. What is A’s share in partnership profit for 2018? A. 380,090 B. 680,000 €. 1,080,006 D. 400,900 ‘What is B's share in partnersnip profit for 20°87 ‘A, 400,000 B. 580,000 C. 100,000 D. 180,000Page 2 Number 6 On December 31, 2018, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 1:6:3: Current Assets 2,000,000 Total Liabilities 1,200,000 Noncurrent Assets 4,000,000 A, Capital 1,800,000 B, Capital 1,600,000 C, Capital 1,400,000 ‘On January 1, 2019, D is admitted to the partnership by purchasing 40% of the capital interest of B at a price of P1,000,000 ‘What is the capital balance of B after the admission of D on January 1, 2019? A. 1,080,000 B. 960,000 C. 840,000 D. 600,000 Number 7 On December 31, 2018, ABC Partnership's Statement of Financial Position shows that A, B and C have capital balances of P800.000, P600,000 and P200,000 with profit or loss ratio of 1:4:5. On January 1, 2019, C retired from the partnership and received P160,000. At the time of C’s retirement, the assets and liabilities of the partnership are properly valued. What is the capital balance of B after the retirement of C? A. 568,000 B. 616,000 C. 632,000 D. 640,000 Number 8 On December 31, 2018, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 1:6:3: Current Assets 2,600,000 Total Liabilities 600,000 Noncurrent Assets 4,000,000 A, Capital 2,800,000 B, Capital 1,400,000 C, Capital \ 1,800,000 ‘On January 1, 2019, D is admitted to the partnership by investing P2,009,000 to the partnership for 20% capital interest. ing partnership are p:operly valued, what is the capital balance of C after If the all the assets of the e the admission of D? A. 1,920,000 B. 1,800,000 C. 1,680,000 D. 2,400,000 Number 9 dissolution of a general partnership? Which of the following will not result to automatic A. Assignment of partner’s interest 10 third person : B. Death of a partner C. Insolvency of the partnership S._D. Civil interdiction of a partnerNumb er 10 Page 3 How shall the net is 7 * profit or net or industrial? loss of the partnership be divided among the partners, whether capitalist A, In accor i Ih accordance th thei capital contbuton eto i i partnership, Just and equitable sharing taking into account the circumstances of the C. Equally D. 7 "i accordance withthe partnership agreement Number 1) When i interest of gant Is admitted to an existing, partnership through the purchase of a portion of existing of incumbent partner, which of the following is correct? A. The total capital of the old and new partnership will be the same. B. The partnership will recognize gain or loss on the difference between the amount paid and capital wansferred, @ + Goodwill may be recognized by virtue of the admission D. There will be increase in the total assets of the partnership equivalent to the amount paid by the newly admitted partner, Numbers 12, 13 and 14 Bacolod Company is experiencing financial problems which resulted to ultimate bankruptcy. The statement of financial position of the entity before liquidation is presented below: Casi 200,000 Incotne tax payable 400,000 Inventory 600,000 Salaries payable 600,000 Land 400,000 Note'payable 1,600,000 . Mortgage payable 200,000 Accounts payable 800,000 Contnbuted capital 1,000,000 Deficit (3,400,000) © The note payable is secured by the inventory with net realizable value of P500,000. © The mortgage payable is secured by the land with fair value of P240,000. 12. What is the amount received by the holder of the note payable at the end of corporate liquidation? A. 640,000 B. 600,000 ; . 500,000 D. 520,000 13. What is the amount received by the holder of the mortgage payable at the end of corporate liquidation? ‘A. 240,000 B. 400,000 C. 300,000 D. 200,000 14. What is the amount received by the employees at the end of corporate liquidation concerning their salaries? A. 200,000 B, 240,000 . C. 144,000 D. 600,000