ADMISSION

Problem 1.

RB and MP are partners with profit and loss ratio of 75:

Assuming that no asset revaluation is to be made, the capital balances of RB and MP, respectively, after
admission of GB are:
A. P28,000 and P14,000 C. P39,200 and P13,300
B. P42,000 and P21,000 D. P35,000 and P17,500

Assuming that equipment of the partnership is undervalued, the capital balances of RB, MP and GB,
respectively, after the admission are:
A. P35,000; P17,500; P21,000 C. P28,000; P14,000; P10,500
B. P67,375; P27,125; P10,500 D. P59,500; P24,500; P21,000

Problem 1

Cont. Agreed Transfer

75% RB 35,000.00 28,000.00 (7,000.00)
25% MP 17,500.00 14,000.00 (3,500.00)
20% GB - 10,500.00 10,500.00
TOTAL 52,500.00 52,500.00 -

75% 25%
RB MP TOTAL
BEFORE REV 35,000.00 17,500.00 52,500.00
REVAL. 39,375.00 13,125.00 52,500.00
AFTER REVAL. 74,375.00 30,625.00 105,000.00

Cont. Agreed Transfer

75% RB 74,375.00 59,500.00 (14,875.00)
25% MP 30,625.00 24,500.00 (6,125.00)
20% GB - 21,000.00 21,000.00
TOTAL 105,000.00 105,000.00 -

Problem 2.

PJ; SR and MT are partners sharing profits and losses of 5:3:2

The amount of asset revaluation is:
A. P15,750 C. P23,100
B. P 7,350 D. P38,850

The amount of bonus in the admission of AV would be:

A. P23,100 C. P12,600
B. P11,550 D. P 6,930

Problem 2
50% 30% 20%
PJ SR MT AV TOTAL
CAPITAL 99,750.00 84,000.00 63,000.00 - 246,750.00
AV Inv 84,000.00 84,000.00
Purch. Of SR - (12,600.00) - 12,600.00 -
Balances 99,750.00 71,400.00 63,000.00 96,600.00 330,750.00
Revaluation 7,875.00 4,725.00 3,150.00 - 15,750.00 A
Total 107,625.00 76,125.00 66,150.00 96,600.00 346,500.00
Bonus to Old Part. 11,550.00 6,930.00 4,620.00 (23,100.00) -
Agreed Balances 119,175.00 83,055.00 70,770.00 73,500.00 346,500.00
Problem 3.

TM and SJ, having capital balances of P980,000 and P525,000 respectively

How much was invested by GD?
A. P848,750 C. P588,000
B. P1,174,250 D. P847,000
Problem 3

Cont. Agreed Transfer

75% TM 980,000.00 1,174,250.00 194,250.00
25% SJ 525,000.00 589,750.00 64,750.00

25% GD 847,000.00 588,000.00 (259,000.00) (=64750/.25)

TOTAL 2,352,000.00 2,352,000.00 -

(1,174,250 + 589,750) = 1,764,000 / 75% = 2,352,000

Problem 4.
LF, EZ and GT are
Upon admission of SG, which of the following statements is false?
A. The capital account of GT will be credited in the amount of P2,250
B. The total agreed capital of the old partners is P18,000 greater than there contributed capital
C. The capital balance of EZ amount to P119,250
D. Cash will be debited in the amount of P40,800

Problem 4

Cont. Agreed Transfer

2/8 LF 67,200.00 71,700.00 4,500.00
5/8 EZ 108,000.00 119,250.00 11,250.00
1/8 GT 38,000.00 40,250.00 2,250.00 A
SG 58,800.00 40,800.00 (18,000.00)
TOTAL 272,000.00 272,000.00 -

(71,700 + 119,250 + 40,250) = 231,200 / 85% = 272,000

RETIREMENT

Problem 1.
On December 30, 2013, the Statement of Financial Position of DTS Co
What is the total capital of MR after retirement of VM?
A. P36,500 C. P36,875
B. P38,375 D. P38,000
Problem 1
25% 25% 50%
VM MR LP
CAP 51,875.00 48,125.00 112,500.00
LOAN 12,500.00 - -
TOTAL INT. 64,375.00 48,125.00 112,500.00 225,000.00
FV adj. 7,500.00 7,500.00 15,000.00 30,000.00
Total FV 71,875.00 55,625.00 127,500.00 255,000.00
Net loss (18,750.00) (18,750.00) (37,500.00) (75,000.00)
Adj'd Int 53,125.00 36,875.00 90,000.00 180,000.00
Bonus from 1,125.00 (375.00) (750.00) 1,125.00
Payment (54,250.00) - - (1,125.00)
Net Capital - 36,500.00 89,250.00 180,000.00
A
Problem 2.

The total of the partners’ capital accounts was P770,000

The total asset revaluation of the firm agreed upon was:
A. P280,000 C. P140,000
B. P196,000 D. P 56,000
Problem 2

Total capital at book value 770,000.00

Less: Remaining cap after
With. 630,000.00
Book value of with. Partner 140,000.00

Fair value of cap. 196,000.00

Less: Book Value 140,000.00
Revaluation of with. Partner 56,000.00
Divide by 20%
Total revaluation 280,000.00 A

Problem 3.

CJ decided to withdraw from his partnership with TF and LX

how much is the remaining partnership net assets after his withdrawal?
A. P1,125,600 C. P1,279,600
B. P 915,600 D. P1,384,600

Problem 3
20% 40% 40%
CJ TF LX
CAP 406,000.00 448,000.00 539,000.00 1,393,000.00
FV adj. (21,000.00) (42,000.00) (42,000.00) (105,000.00)
Total FV 385,000.00 406,000.00 497,000.00 1,288,000.00
Payment (372,400.00) (372,400.00)
BONUS TO (12,600.00) 6,300.00 6,300.00 -
Net Capital - 412,300.00 503,300.00 915,600.00 B

Problem 4. FC, DG and GY are

Which of the following statements is false?
A. The capital account of FC has a net increase of P26,922 from beginning to end of 2013.
B. Upon retirement of GY, the capital account of DG will have a net increase of P2,583 as a result of
the transfer of capital.
C. Upon retirement of GY, the balance of the capital account of FC amount to P76,622.
D. At the end of 2013, the balance of the capital account of DG is P53,361 higher than the capital
account balance of FC.

Problem 4
2 3 1
FC DG GY
12/31/2012 74,900.00 114,800.00 67,900.00 257,600.00
NI 10,500.00 15,750.00 5,250.00 31,500.00
TOTAL 85,400.00 130,550.00 73,150.00 289,100.00
Bonus from (8,778.00) (13,167.00) 21,945.00 21,945.00
Payment - - (95,095.00) (95,095.00)
Net Capital 76,622.00 117,383.00 - 215,950.00
NI 25,200.00 37,800.00 - 63,000.00
12/31/2013 101,822.00 155,183.00 278,950.00
Net income 4 months (94,500 / 12 x 4) = 31,500
Net Income 8 months (94,500 / 12 x 8) = 63,000

A: 101,822 – 74,900 = 26,922

B: Transfer is a decrease of 13,167
C: Capital is 76,622
D: 155,183 – 101,822 = 53,361