ST QUIZ 1

The ABC Partnership reports net income of P60,000. If partners A, B and C have income ratio of 50%, 30% and 20%, respectively. What is the share of Partner C from the net income, if he was given a capital ratio of 25%? a. 30,000 b. 18,000 c. 12,000 d. 15,000

12,000

On January 1, 2021, A, B and C formed ABC Partnership with total agreed capitalization of P1,000.000. The capital interest ratio of the ABC Partnership is 3:2:5 while the profit or loss ratio is 5:1:4, respectively for A, B, and C. During 2021, A ,B and C made additional investments of P300,000, 200,000 and P500,000, respectively. At the end of 2021, B and C made drawings of P200,000 and P300.000. respectively. On December 31. 2021, the capital balance of C is reported at P400,000. What is the capital balance of A on December 31, 2021? a. 225,000 b. 480,000 c. 720,000 d. 975,000

225,000

A, B, and C are capitalist partners and D, an industrial partner. The partnership reported a net loss of P100,000. How much is the share of D in the reported net loss? a. 25,000 b. 0 c. 100,000 d. 10,000

0

During 2020, A and B maintained average capital balances in their partnership of P160,000 and P100,000, respectively. The Partners receive 10% interest on average capital balances, and residual profit and loss is divided equally. Partnership profit before interest was P4,000. By what amount should B's capital account change for the year? a. 1,000 decrease b. 12,000 increase c. 11,000 decrease d. 2.000 increase

1,000 decrease

ABC's partnership provided for the following distribution of profits and losses, (1) A is to receive 10% of the net income up to PP1,750,000 and 20% on the amount of expenses thereof, (2) B and C each are to receive 5% of the remaining revenue in excess of P2,625,000 after A's share as per above and the balance to be divided equally among the partners. For the year just ended, the partnership realized a net income of P4,375,000 before distribution to partners. The share of A is a. 1,890,000 b. 2,275,000 c. 1,925,000 d. 1,750,000

1,890,000

The partnership agreement of A, B & C provides for the year-end allocation of net income in the following order: First, A is to receive 10% of net income up to ₱100,000 and 20% over ₱100,000. Second, B and C each are to receive 5% of the remaining income over ₱150,000. The balance of income is to be allocated equally among the three partners. The partnership's 2020 net income was ₱250,000 before any allocations to partners. What amount should be allocated to A? a. 108,000 b. 101,000 c. 103,000 d. 110,000

108,000

A and B are currently changing their partnership profit and loss ratios from 55/45 to 75/25. They have created a list of assets that have market and book value differences. One of the assets is a building with a P400,000 market value and P200,000 book value. Two years after changing the profit and loss ratios, the building is sold for P480,000. How much of the profit is allocated to A? a. P154,000 b. P170,000 c. P60,000 d. P210,000

170,000

A, B, and C are partners when the partnership earned a profit of P30.000. Their agreement provides the following regarding the allocation of profits and losses: a. 8% interest on partners' ending capital in excess of P75.000. b. Salaries of P20.000 for A and P30,000 for B. c. Any balance is to be distributed 2:1:1 for A, B, and C, respectively. Assume ending capital balances of P60,000, P80.000. and P100,000 for partners A, B. and C, respectively. What is the amount of profit allocated for C, if each provision of the profit and loss agreement is satisfied to whatever extent possible using the priority order shown above? a. 2,000 b. (2,000) c. (3,600) d. 3,600

2000

Partners A and B have profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for A and B, respectively; a bonus to A of 10% of net income after salaries and bonus; and interest of 10% on average capital balances of P20,000 and P35,000 for A and B, respectively. One-third of any remaining profits will be allocated to A and the balance to B. If the partnership had net income of P102,500, how much should be allocated to Partner A? a. 47,500 b. 41,000 c. 41,167 d. 44,250

41,000

A, a partner in the ABC Partnership, has a 20% participation in partnership profits and losses. A's capital account had a net increase of P40,000 during the year 2020. During 2020, A withdrew P230,000 (charged against his capital account) and contributed property valued at P150,000 to the partnership. What was the net income/loss of ABC Partnership? a. (120,000) b. 120,000 c. (600,000) d. 600,000

600,000

A and B formed a partnership on March 1, 20x1. The partnership agreement stipulates the following: · Monthly salary allowances of ₱10,000 for A and ₱6,000 for B. Salary allowances are to be withdrawn by the partners throughout the period and are to be debited to their respective drawings accounts. · The partners share profits equally and losses on a 60:40 ratio. During the period the partnership earned profit of ₱200,000 before salary allowances. How much is the share of Partner B in the partnership profit? a. 76,000 b. 100,000 c. 120,000 d. 80,000

80,000

A and B formed a partnership. The partnership agreement stipulates the following: · Annual salary allowance of ₱40,000 for A. · Interest of 10% on the weighted average capital balance of B. · The partners share profits and losses in a 80:20 ratio. During the period the partnership earned profit of ₱100,000. The movements in B's capital account are as follows: B, Capital Aug 1 drawings 30,000 dr Beg capital 60k cr March 31 Additional Investment 20,000 cr October 1 Additional Investment 40,000 cr December 1 Additional Investment 10,000 cr The weighted average capital balance of B is 73,333. How much is the share of A in the partnership profit? a. 82,200 b. 78,667 c. 83,167 d. 82,134

82,134

A and B formed a partnership. The partnership agreement stipulates the following: · Annual salary allowances of ₱100,000 for A and ₱70,000 for B. · Bonus to A of 10% of profit after partner's salaries and bonus. · The partners share profits and losses on a 50:50 ratio. During the period the partnership incurred loss of ₱500,000. How much is the share of A in the partnership results of operations during the period? a. (235,000) b. (265,000) c. (220,000) d. (280,000)

(235,000)

capital balance of C is reported at P400,000. What is the net income or net loss of ABC Partnership for the year ended December 31. 2021? a. (750,000) b. 750,000 c. (400,000) d. 400,000

(750,000)

A and B are partners who are changing their profit and loss ratios from 70/30 to 60/40. At the date of the change, the partners choose to revalue assets with market value different from book value. One asset revalued is land with a book value of P50,000 and a market value of P120,000. Two years after the profit and loss ratio is changed, the land is sold for P200,000. What is the amount of change to A's capital account at the date the land is revalued? a. P49,000 b. P70,000 c. P42,000 d. P56,000

P49,000