Exercise 5-1
1.a. Bonus method
Dee, Capital 20,000
Dantes, Capital (P5,000 x 3/5) 3,000
Dungca, Capital (P5,000 x 2/5) 2,000
Cash 25,000
Dantes will prefer the asset revaluation method. The gain is P3,000 under the asset
revaluation method compared with the bonus method.
Exercise 5-2
1. Diesta, Capital 80,000
Dayrit, Capital (P10,000 x3/4) 7,500
Dayag, Capital (P10,000 x 1/4) 2,500
Cash 96,000
Exercise 5-3
Daria, capital, January 1 P25,000
Drawing ( 4,000)
Share in net income (P20,000 x 40%) 8,000
Interest of Daria upon retirement P29,000
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Ditas, Capital (P10,000 x 30%) 3,000
Dulce, Capital (P10,000 x 30%) 3,000
Exercise 5-4
1. Dolor, Capital 40,000
Damian, Capital 20,000
Damaso, Capital 20,000
Exercise 5-5
1. Domingo, Capital 70,000
Dizon, Capital 70,000
Exercise 5-6
1. Dimla, Capital 1,440
Distor, Capital 960
Daza, Capital 12,000
Cash 14,400
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PROBLEMS
Problem 5-1
1. Delfin, Capital 200,000
Cash 200,000
Problem 5-2
1. Merchandise Inventory 7,000
Capital Adjustment Account 7,000
Problem 5-3
1 Damo Dayan Datu
Capital, January 1, 2015 P120,000 P 70,000 P 80,000
Net loss ( 12,000) ( 8,000) ( 20,000)
Drawing ( 25,000) ( 25,000) ( 25,000)
Capital upon retirement of Dayan P 83,000 P 37,000 P 35,000
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Datu, Capital 17,500
Dayan, Capital 37,000
Cash 30,000
Inventory 35,000
P37,000 P30,000 = P7,000 20% =P35,000
Problem 5-4
1. Daet, Capital 12,000
Dais, Capital 8,000
Dancel, Capital 140,000
Cash 160,000
Problem 5-5
1. Books 72,000
Other Assets 48,000
Dizon, Capital 240,000
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Cash 288,000
David, Capital 36,000
Duque, Capital 36,000
Problem 5-6
Danao, Diaz, Dolor and Dungca Partnership
Statement of Partners' Equity
For the Year Ended December 31, 2014
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Income Summary 9,998.44
Danao, Capital 4,705.15
Diaz, Capital 3,528.86
Diaz Costa, Capital 1,764.43
MULTIPLE CHOICE
1. C
2. A
3. C
4. A
5. A
6. C Amount paid by the partnership P 71,000
Capital of Dayrit
Total capital before withdrawal of Dayrit P210,000
Total capital after withdrawal of Dayrit 160,000 50,000
Asset Revaluation to Dayrit P 21,000
Profit share of Dayrit 30%
Total asset revaluation P 70,000
7. B Capital of Dino before purchasing interest from Dolor P 35,000
Interest of Dolor transferred to Dino 25,000
Capital of Dino P 60,000
8. D Doctor's capital before the withdrawal of Dolor P 45,000
Share in the bonus given to Dolor
(P33,000 - P25,000) x 3/6 4,000
Doctor's capital after the withdrawal of Dolor P 41,000
9. A The same as the capital before the withdrawal of Dolor, P35,000
10. C Dinos capital before the withdrawal of Dolor P 35,000
Share of Dino in the revaluation of assets
Excess payment to Dolor P8,000
Profit share of Dolor 40%
Increase in asset per revaluation P20,000
Share of Dino in the asset revaluation x 30% 6,000
Dinos capital after the withdrawal of Dolor P 41,000
11. C
12. B Dizon Dionisio Divino
Loan and capital balances P206,000 P154,000 P360,000
Revaluation of assets 24,000 24,000 48,000
Bonus to Dizon 12,000 ( 4,000) ( 8,000)
P242,000 P174,000 P400,000
13. B P180,000 + P10,000 P220,000 = (P30,000)/40% = (P75,000)
14. D P60,000 + (20,000 x 20%) - P15,000 - P80,000 = P31,000
15. D P31,000/20% = P155,000 x 40% = P62,000
TEST MATERIALS
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2. T 6. T 10. F 14. T 18. T
3. T 7. F 11. T 15. F 19. F
4. F 8. T 12. F 16. T 20. F
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