Exam (elaborations)
AC MISC MIDTERM EXAM 2024/2025 UPDATE ALL CORRECT
- Course
- NURSMISC
- Institution
- Holy Cross College
AC MISC MIDTERM EXAM 2024/2025 UPDATE ALL CORRECT
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Page |1AC AC MISC MIDTERM EXAM 2024/2025 UPDATE ALL CORRECT
NAME: Date:
Professor: Section: Score:
ACCOUNTING FOR SPECIAL TRANSACTIONS
FIRST GRADING EXAMINATION
1. AAA and BBB are partners with capital of P60,000 and P20,000, respectively.
Profits and losses are divided in the ratio of 60:40. AAA and BBB decided to form a
new partnership with CCC, who invested land valued at P15,000 for a 20% capital
interest in the new partnership. CCC’s cost of the land was P12,000 the
partnership elected to use the bonus method to record the admission of CCC into
the relationship. CCC’s capital account should be credited for
a. P12,000 c. P16,000
b. P15,000 d. P19,000
60+20+15= 95 x 20%=19
2. AAA and BBB formed partnership in 2009. The partnership agreement provides for
annual salary allowances of P55,000 for AAA and P45,000 for BBB. The partners
share profits equally and losses in a 60:40 ratio. The partnership had earnings of
P80,000 for 2009 before any allowance to partners. What amount of these earnings
should be credited to each partner’s capital account?
AAA BBB AAA BBB
a. P40,000 P40,000 c. P 44,000 P
36,000
b. 43,000 37,000 d. 45,000
35,000
B
3. The partnership agreement of AAA and BBB provides that interest at 10% per year
is to be credited to each partner on the basis of weighted-average capital balances.
A summary of BBB’s capital account for the year ended December 31, 2009, is as
follows:
Balance, January 1 P 140,000
Additional investment, July 1 40,000
Withdrawal, August 1 15,000
What amount of interest should be credited to BBB’s capital account for 2009?
a. P15,250 c. P16,500
b. P15,375 d. P17,250
4. AAA and BBB are partners who share profits and losses on the ratio of 6:4,
respectively. On May 1, 2009, their respective capital accounts were as follows:
AAA P 60,000
BBB 50,000
On the date, CCC was admitted as a partner with one-third interest in capital and
profits for an investment of P40,000. The new partnership began with total capital
of P150,000. Immediately after CCC’s admission, AAA’s capital should be
a. P50,000 c. P56,667
b. P54,000 d. P60,000
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5. AA and BB formed a partnership in 20x1 and made the following investments and
capital withdrawals during the year:
AA BB
Investments Draws Investments Draws
March 1………………P30, 000 P 20, 000
June 1………………………… P10, 000
P10,000
August 1 ....................... 20, 000
2,000
December 1……………………. 5, 000
The partnership’s profit and loss agreement provides for salary of which P30,000 was
paid to each partner for 20x1. AA is to receive a bonus of 10% on net income after
salaries and bonus. The partners are also to receive interest of 8% on average annual
capital balances affected by both investments and drawings. Any remaining profits are
to be allocated equally among the partners.
Assuming the net income of P60, 000 before salaries and bonus, determine how the
income would be allocated among the partners.
a. AA, P31, 138; BB, P28, 862 c. AA, P30, 633; BB, P29, 376
b. AA, P33, 537; BB, P26, 463 d. AA, P30, 684; BB, P29, 316
D
Use the following information to answer the next two questions
The following condensed balance sheet is presented for the partnership of AAA and
BBB, who share profits and losses in the ratio of 60:40, respectively:
Cash P 45,000 Accounts payable P 120,000
Other assets 625,000 AAA, capital 348,000
BBB, loan 30,000 BBB, capital 232,000
Total P 700,000 Total P 700,000
The assets and liabilities are fairly valued on the balance sheet. AAA and BBB decide
to admit CCC as a new partner with 20% interest.
6. What amount should CCC contribute in cash or other assets?
a. P110,000 c. P140,000
b. P116,000 d. P145,000
D 348,000 + 232,000 = 580 ÷ 80% x 20% = 145,000
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7. Instead of admitting a new partner, AAA and BBB decide to liquidate the
partnership. If other assets are sold for P500,000, what amount of the available
cash should be distributed to AAA?
a. P255,000 c. P327,000
b. P273,000 d. P348,000
B
8. The following condensed balance sheet is presented for the partnership of BBB and
AAA, who share profits and losses on the ratio of 60:40, respectively:
Other assets P 450,000
BBB loan 20,000
P 470,000
Accounts payable P 120,000
BBB, capital 195,000
AAA, capital 155,000
Total P 470,000
The partners have decided to liquidate the partnership. If the other assets are sold
P385,000, what amount of the available cash should be distributed to BBB?
a. P136,000 c. P159,000
b. P156,000 d. P195,000
A
9. On December 31, 1998, the partners of MNP Partnership decided to liquidate their
business. Immediately before liquidation, the following condensed balance sheet
was prepared:
Cash P 50,000 Liabilities P 375,000
Noncash assets 900,000 Nieva, loan 80,000
Perez, loan 25,000
Munoz, capital (50%) 312,500
Nieva, capital (30%) 107,500
Perez, capital (20%) 50,000
Total P 950,000 Total P 950,000
The noncash assets were sold for P400,000. Assuming Perez is the only solvent
partner, what amount of additional cash will be invested by Perez? (rounded to the
nearest peso)
a. P 37,143
b. 25,000
c. 5,250
d. 0
B
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