Ast Bsma4-1

LYCEUM OF THE PHILIPPINES – LAGUNA
Km. 54 National Highway, Makiling, Calamba Laguna
COLLEGE OF BUSINESS AND ACCOUNTANCY
1. Prior to partnership liquidation, a schedule of possible losses is frequently prepared to determine the
amount of cash that may be safely distributed to the partners. The schedule of possible losses
a. Indicates the distribution of successive amounts of available cash to each partner.
b. Consists of each partner’s capital account plus loan balance, divided by that partner’s profit-and-
loss sharing ratio.
c. Assumes contribution of personal assets by partners unless there is a substantial presumption of
personal insolvency by the partners.
d. Shows the successive losses necessary to eliminate the capital accounts of partners (assuming no
contribution of personal assets by partners).
2. Which of the following statements is true?
I. A partnership may be dissolved at any time by action of the partners or by operation of law
II. The assets contributed by the partners are always recorded at fair market values
III. The capital share of each partner is the percentage of equity that each of them will have in
the net assets of the newly formed partnership
a.I,II and III c. I and III

b.I only d.I and II
3. All of the following will result to partnership dissolution except:

a. Admission of a new partner
b. Retirement of a partner
c. Assignment of partner’s interest to the third party
d. Incapacity of a partner
4. What is the right order of priority for the claims against the partnership assets?
1. Partnership creditors other than partners

2. Partner’s claims other than capital and profits, such as loans payable and accrued interest payable
3.Partner’s claim to capital and profits, to the extent of credit balances in their capital accounts
a.1,2,3 c. 3,2,1
b. 1,3,2 d.2,3,1
5.In a partnership liquidation, the final cash distribution to the partners should be made in accordance
with the
a.partner profit and loss sharing ratios

b. balances of partners' capital accounts
c.ratio of the capital contributions by partners
d. safe payment computations
6.Which of the following best describes the attributes of a partnership?

a.Limited life of the business and limited liability of partners
b.Limited life of the business and unlimited liability of partners
c. Unlimited life of the business and limited liability of partners
d.Unlimited life of the business and unlimited liability of partners
7. If the total contributed capital exceeds the agreed capital with the new partner’s investment is the
same as his capital credit, then the admission of the new partner involved a
a. positive asset revaluation
b.negative asset revaluation
c. bonus to the old partners
d. bonus to the new partners
8. If a new partner purchases his interest from an old partner, the only entry on the partnership books is
a credit to the purchaser’s capital account with a debit to the
a. Bonus account
b. cash account
c. Capital account of the selling partner
d. Capital accounts of the other partners
9. If A is the total capital of a partnership before the admission of a new partner, B is the total capital of
the partnership after the investment of new partner, C is the amount of the new partner’s investment,
and D is the amount of capital credit to the new partner, there is
a. neither bonus nor asset revaluation if B=A + C and D > C
b. a bonus to the old partners if B > ( A + C) and D < C
c. a bonus top the new partner if B = A + C and D < C
d. an asset revaluation to the old partners if B > ( A + C ) and D = C
Aldo, Bert, and Chris formed a partnership on Aril 30, with the following assets, measured at their fair
values, contributed by each partner:
Aldo Bert Chris

Cash P 10,000 P 12,000 P 30,000
Delivery trucks 150,000 28,000 -
Computers 8,500 5,100 -
Office furniture ________ 3,500 2,500
Totals P 168,500 P 48,600 P 32,500
10.Although Chris has contributed the most cash to the partnership, he did not have the full amount of P
30,000 available and was forced to borrow P20,000. The delivery truck contributed by Aldo has a
mortgage of P 90,000 and the partnership is to assume responsibility for the loan. The partners agreed to
equalize their interest. Cash settlement among the partners are to be made outside the partnership.
Using the Bonus Method, who pays and who receives?
a. Bert and Chris should pay Aldo, P 4,600 and 20,700 respectively.
b. Aldo should pay Bert and Chris, P 25,300.
c. Bert should pay Aldo, P 25,300 and Chris, P 20,700.
d. Chris should pay Aldo, P 25,300 and Bert, P 4,600.
11.A, B and C are partners in the accounting firm. Their capital account balances at year-end were: A, P
90,000; B, P 110,000; C, P 50,000. They share profits and losses in a 4:4:2 ratio, after the following special
terms:
(1) Partner C is to receive a bonus of 10% of the net income after bonus.
(2) Interest of 10% shall be aid on that portion of a partner's capital in excess of
P 100,000.
(3) Salaries of P 10,000 and P 12,000 shall be paid to partners A and C, respectively.
Assuming a net income of P 44,000 for the year, What is the total profit share of partners C would
be?
a. P 7,800 c. P 19,400
b. P 16,800 d. P 19,800
12. Bart and Mart are partners who share profits and losses in a 2:3 ratio. The partnership will be
liquidated in installments. Some non-cash assets have been sold, but other assets with a book value of
P126,000 remained. Liabilities are now P16,000 and liquidation expenses are expected to be P7,200. The
capital balances are P92,000 for Bart and P68,000 for Mart.Assuming cash available is distributed, how
much is the share of Bart?
a. P42,800
b. P26,800
c. P32,000
d. P8,000
13.Julian, Kiamco, and Lapid are partners sharing profits in the ratio of 5:3:2 respectively. As of December
31,2010, their capital balances were P95,000 for Julian, P80,000 for kiamco, P60,000 for Lapid
On January 1,2012, the partners admitted Manalo as a new partner and according to their agreement,
Manalo will contribute P80,000 in cash to the partnership and also pay P10,000 for 15% of Kiamco’s share.
Manalo will be given a 20% share in profits, while the original partner’s share will be proportionately the
same as before. After the admission of Manalo, the total capital will be P330,000 and Manalo’s capital will
be P70,000. The amount of asset revaluation is
a.P 7,000 c.P22,000
b.P15,000 d.P37,000
14.The bonus in the admission of Manalo would be

a.P6,600 c.P12,000
c.P11,000 d.P22,000
15.The balance of Kiamco’s capital, after the admission of Manalo would be

a.P72,600 c.P79,100
c.P74,600 d.P81,100

Ast Bsma4-1

Uploaded by

Copyright:

Available Formats

Ast Bsma4-1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ast Bsma4-1

Uploaded by

Copyright:

Available Formats

LYCEUM OF THE PHILIPPINES – LAGUNA

Km. 54 National Highway, Makiling, Calamba Laguna

COLLEGE OF BUSINESS AND ACCOUNTANCY

2. Which of the following statements is true?

a.I,II and III c. I and III

3. All of the following will result to partnership dissolution except:

1. Partnership creditors other than partners

a.partner profit and loss sharing ratios

6.Which of the following best describes the attributes of a partnership?

Aldo Bert Chris

14.The bonus in the admission of Manalo would be

15.The balance of Kiamco’s capital, after the admission of Manalo would be

You might also like