Book 6
Book 6
Book 6
a 1 On January 1, 2017, Angel, Bea and Colleen formed ABC & Co., a general professional partnership for the
exercise of their common profession. Angel contributed a building with cost of P5M and accumulated
depreciation of P4M. Based on the city assessor's records, the building has an assessed value of P 2M
The building has an annotated mortgage payable amount to P 500,000 to be assumed by the partnership.
On the other hand, Bea contributed 10,000 shares of stocks with par value of P200/per share and
prevailing quoted price of P 300/share. On January 2, 2017, the building contributed by Angel was sold
for P5.5M.
If Colleen wants to have 20% capital interest in the newly formed partnership, how much shall be
contributed by her?
a P 875,000 b. P 1,125,000 c P 2,125,000
Computation:
100% 50% 30%
Total Angel Bea
Contributuons ### 5,000,000 3,000,000
a 2 On July 1, 2016, Anne, Bianca, and Carla formed a business partnership to be operated as an advertising
agency. Anne contributed P10M cash while Bianca shall have a capital credit of P6M upon receipt of
bonus of P1M from Anne based on the provision in Articles of Co-Partnership. The terms of the agreement
provides that Anne and Bianca shall have a combined40% capital inters in the newly formed partnership
Computation:
100% 40%
Total Anne Bianca
Contributuons ### 9,000,000 6,000,000
b 3 On January 1, 2016, Regina, Jessica and Nataly formed a partnership with profit and loss sharing agreement
of 2:3:5;
Regina contributed a land with assessed value from city assessor in the amount of P 1,000,000. The land is
subject to a real estate mortgage which is annotated to the title of the land in the amount of P 800,000 and
will be assumed by the partnership. The appraised value of the land is P 2,400,000. Jessica contributed a
building with a cost of P 2,000,000 and accumulated depreciation of P 1,500,000. The fair value of the
building is P 800,000. Nataly contributed investment in trading securities with historical cost of
P 6,000,000. The trading securities have a quoted price in active market of P 3,000,000.
The partners decided to bring their capital balances in accordance with their profit or loss sharing
agreement. The total agreed capitalization of the new partnership is P 10,000,000.
Which of the following statements is correct?
a The agreed capital of Nataly is P 500,000
b Regina should contribute additional capital in the amount of P 1,800,000
c Jessica should contribute additional capital in the amount of P 2,200,000
d Nataly is entitled to withdraw in the amount of P 1,000,000
c 4 On January 1, 2017, Len, May and Nancy decided to form a business partnership to operate supermarkets.
Len and May both owned a grocery business with the Statements of Financial Position as of December 31,
2016
LEN
Cash P 10M P
Accounts receivable 20
Inventories 70
Property, Plant and Equipment 50
Accounts payable 40
Notes payable 10%, 5%, respectively 30
Capital 80M
Computation:
100% 80%
Total Len
Contributuons ### 65,500,000
onal partnership for the
5M and accumulated
essed value of P 2M
med by the partnership.
ow much shall be
d. P 2,000,000
ated as an advertising
6M upon receipt of
e terms of the agreement
wly formed partnership
d. P 32,000,000
t or loss sharing
o operate supermarkets.
tion as of December 31,
MAY
20M
30
40
10
20
50
30M
rmed partnership;
the accounts receivable of
d. P 18,475,000
80% 20%
May Nancy
65,500,000 ###