Advanced Accounting April 25, 2012 1.

Peter, Pan and Paul are partners who had average capital balances, respectively, of P240,000, P120,000, and P80,000 during 2011. Partners received 10% interest on their average capital balances. After deducting salaries of P60,000 for Peter and P40,000 for Paul the residual profit or loss is divided equally. In 2011, by what amount would the capital account of Peter change (how much is the increase or decrease of Peters capital)? 2. Jack and Jill are partners with capitals of P200,000 and P100,000, respectively, and sharing profits 3:1, respectively. They agreed to admit a new partner, Jason. Jason invests P125,000 for a 25% interest in the firm and the parties agreed that the total firm capital after Jasons Admission is to be P425,000. After Jasons admission, each partners capital balances would be? 3. Partners Xian, Yan and Zen divide profits and losses equally and have capital balances of P 40,000, P90,000 and P30,000 respectively immediately prior to liquidation. Total remaining assets have a book value of P 160,000, the liabilities having been paid. Among these remaining assets is a machine with a fair value of P 35,000 in lieu of cash. The other partners have no designs on specific assets, only cash in liquidation. How much cash, in addition to the machine, would be first distributed to Yan, before any other partners receive anything? 4. The partnership of Tito, Vic and Joey was formed on January 1, 2010. The original investments were as follows: Tito, P120,000; Vic P 180,000; Joey, P270,000. According to the partnership agreement, net income or loss will be divided among the respective partners as follows: (1) salaries of P40,000 for Tito, P35,000 for Vic, and P24,000 for Joey. (2) Interest of 8% on the original capital balance for each partner, (3) remainder is divided equally. For Tito to receive P40,350 as his share in the profit of the partnership, how much is the net income that must be generated by the partnership? 5. The capital accounts of the Partnership of Zeus, Poseidon and Hades on June 1, 2011 are presented along with their respective profit and loss ratios: Zeus (1/2) P174, 000 Poseidon (1/3) 261, 000 Hades (1/6) 120, 000 On June 1, 2011, Kronos was admitted to the partnership when he purchased, for P165,000, a proportionate interest, from Zeus and Poseidon in the net assets and profits of the partnership. As a result of this transaction, Kronos acquired a one-fifth interest in the net assets and profits of the firm. P55,500 of the transferred interest was purchased from Zeus, and the balance from Poseidon. The amount to be received by Poseidon from the sale of a portion of his interest to Kronos is?

Advanced Accounting April 25, 2012 1. Peter, Pan and Paul are partners who had average capital balances, respectively, of P240,000, P120,000, and P80,000 during 2011. Partners received 10% interest on their average capital balances. After deducting salaries of P60,000 for Peter and P40,000 for Paul the residual profit or loss is divided equally. In 2011, by what amount would the capital account of Peter change (how much is the increase or decrease of Peters capital)? 2. Jack and Jill are partners with capitals of P200,000 and P100,000, respectively, and sharing profits 3:1, respectively. They agreed to admit a new partner, Jason. Jason invests P125,000 for a 25% interest in the firm and the parties agreed that the total firm capital after Jasons Admission is to be P425,000. After Jasons admission, each partners capital balances would be? 3. Partners Xian, Yan and Zen divide profits and losses equally and have capital balances of P 40,000, P90,000 and P30,000 respectively immediately prior to liquidation. Total remaining assets have a book value of P 160,000, the liabilities having been paid. Among these remaining assets is a machine with a fair value of P 35,000 in lieu of cash. The other partners have no designs on specific assets, only cash in liquidation. How much cash, in addition to the machine, would be first distributed to Yan, before any other partners receive anything? 4. The partnership of Tito, Vic and Joey was formed on January 1, 2010. The original investments were as follows: Tito, P120,000; Vic P 180,000; Joey, P270,000. According to the partnership agreement, net income or loss will be divided among the respective partners as follows: (1) salaries of P40,000 for Tito, P35,000 for Vic, and P24,000 for Joey. (2) Interest of 8% on the original capital balance for each partner, (3) remainder is divided equally. For Tito to receive P40,350 as his share in the profit of the partnership, how much is the net income that must be generated by the partnership? 5. The capital accounts of the Partnership of Zeus, Poseidon and Hades on June 1, 2011 are presented along with their respective profit and loss ratios: Zeus (1/2) P174, 000 Poseidon (1/3) 261, 000

Hades (1/6) 120, 000 On June 1, 2011, Kronos was admitted to the partnership when he purchased, for P165,000, a proportionate interest, from Zeus and Poseidon in the net assets and profits of the partnership. As a result of this transaction, Kronos acquired a one-fifth interest in the net assets and profits of the firm. P55,500 of the transferred interest was purchased from Zeus, and the balance from Poseidon. The amount to be received by Poseidon from the sale of a portion of his interest to Kronos is?