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

75%
25%

RB
MP

Cont.
35,000.00
17,500.00

20%

GB
TOTAL

52,500.00

10,500.00
52,500.00

10,500.00
-

BEFORE REV
REVAL.
AFTER REVAL.

75%
RB
35,000.00
39,375.00
74,375.00

25%
MP
17,500.00
13,125.00
30,625.00

TOTAL
52,500.00
52,500.00
105,000.00

Cont.
74,375.00
30,625.00
105,000.00

Agreed
59,500.00
24,500.00
21,000.00
105,000.00

Transfer
(14,875.00)
(6,125.00)
21,000.00
-

75%
25%
20%

RB
MP
GB
TOTAL

Agreed
28,000.00
14,000.00

Transfer
(7,000.00)
(3,500.00)

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
B. P11,550

C. P12,600
D. P 6,930

Problem 2

CAPITAL
AV Inv
Purch. Of SR
Balances
Revaluation
Total

50%
PJ
99,750.00

30%
SR
84,000.00

20%
MT
63,000.00

99,750.00
7,875.00
107,625.00

(12,600.00)
71,400.00
4,725.00
76,125.00

63,000.00
3,150.00
66,150.00

84,000.00
12,600.00
96,600.00
96,600.00

Bonus to Old Part.

Agreed Balances

11,550.00
119,175.00

6,930.00
83,055.00

4,620.00
70,770.00

(23,100.00)
73,500.00

AV

TOTAL
246,750.00
84,000.00
330,750.00
15,750.00 A
346,500.00
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

75%
25%

TM
SJ

Cont.
980,000.00
525,000.00

25%

GD
TOTAL

847,000.00
2,352,000.00

Agreed
1,174,250.00
589,750.00
588,000.00
2,352,000.00

Transfer
194,250.00
64,750.00
(259,000.00) (=64750/.25)
-

(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

2/8
5/8
1/8

LF
EZ
GT
SG
TOTAL

Cont.
67,200.00
108,000.00
38,000.00
58,800.00
272,000.00

Agreed
71,700.00
119,250.00
40,250.00
40,800.00
272,000.00

Transfer
4,500.00
11,250.00
2,250.00
(18,000.00)
-

(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

CAP
LOAN
TOTAL INT.

25%
VM
51,875.00
12,500.00
64,375.00

25%
MR
48,125.00
48,125.00

50%
LP
112,500.00
112,500.00

225,000.00

FV adj.
Total FV
Net loss
Adj'd Int
Bonus from
Payment
Net Capital

7,500.00
71,875.00
(18,750.00)
53,125.00
1,125.00
(54,250.00)
-

7,500.00
55,625.00
(18,750.00)
36,875.00
(375.00)
36,500.00
A

15,000.00
127,500.00
(37,500.00)
90,000.00
(750.00)
89,250.00

30,000.00
255,000.00
(75,000.00)
180,000.00
1,125.00
(1,125.00)
180,000.00

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
Less: Remaining cap after
With.
Book value of with. Partner

770,000.00
630,000.00
140,000.00

Fair value of cap.

Less: Book Value
Revaluation of with. Partner
Divide by
Total revaluation

196,000.00
140,000.00
56,000.00
20%
280,000.00

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

CAP
FV adj.
Total FV
Payment
BONUS TO
Net Capital

20%
CJ
406,000.00
(21,000.00)
385,000.00
(372,400.00)
(12,600.00)
-

40%
TF
448,000.00
(42,000.00)
406,000.00

40%
LX
539,000.00
(42,000.00)
497,000.00

6,300.00
412,300.00

6,300.00
503,300.00

1,393,000.00
(105,000.00)
1,288,000.00
(372,400.00)
915,600.00

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

12/31/2012
NI
TOTAL
Bonus from
Payment
Net Capital

2
FC
74,900.00
10,500.00
85,400.00
(8,778.00)
76,622.00

3
DG
114,800.00
15,750.00
130,550.00
(13,167.00)
117,383.00

NI
12/31/2013

25,200.00
101,822.00

37,800.00
155,183.00

1
GY
67,900.00
5,250.00
73,150.00
21,945.00
(95,095.00)
-

257,600.00
31,500.00
289,100.00
21,945.00
(95,095.00)
215,950.00
63,000.00
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