PUNZALAN
-
Upload
angelique-kate-tanding-duguiang -
Category
Documents
-
view
216 -
download
0
Transcript of PUNZALAN
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 1/16
Red and White formed a partnership in 2010. The partnership agreement provides
for annual salary allowances of P55,000 for Red and P5,000 for White. The partners
share pro!ts e"ually and losses in a #0$0 ratio. The partnership had earnings of
P%0,000 for 200# &efore any allowance to partners. What amount of these earnings
should &e credited to each partner's capital account(
Red white
0,000))0,000
***+,000)+,000
,000))+#,000
5,000))+5,000
-o, /reg and owe are partners wit average capital &alances during 2010 of
P120,000, P#0,000 and P0,000, respectively. Partners receive 10 interest on their
average capital &alances . after deducting salaries of P+0,000 to -o and P20,000 to
ow's , the residual pro!t or loss is divided e"ually. n 2010, the partnership
sustained a P++,000 loss &efore interest and salaries to partners. 3y what amount
should -o capital account change(
***,000 increase
11,000 decrease
+5,000 decrease
2,000 increase
The partnership agreement of 4onna, ddy, and -arr provides for annual distri&ution
of pro!t and loss in the following se"uence6
)4onna ,the managing partner receives a &onus of 10 pro!t
)ach partner receives # interest on average capital investment
)Residual pro!t or loss is divided e"ually
)7verage capital investment for 2010 were6
4onna %0,000
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 2/16
ddy 50,000
-arr +0,000
What portion should &e allocated to 888(
4onna 1,#00
ddy 29,%00
-arr 2%,#00
+5,1++
++,++++
The 7rticles of Partnership of 7dam and ve the following provisions werestipulated6
)annual salary of P#0,000 each
)3onus to 7dam of 20 of the net income after partnes' salaries , the &onus &eing
treated as an epense.
)&alance to &e divided e"ually
The partnership reported a net income of P+#0,000 after partners' salaries &ut
&efore &onus. ow much is the share of 888 in the pro!t(
7dam 20,000
ve 210,000
#0,000
90,000
150,000
Partners 77 and 33 have pro!t and loss agreement with the following provisions 6
salaries of P+0,000 and P5,000 for 77 and 33, respectively: a &onus to 77 of 10
of the net income after salaries and &onus : and interest of 10 on average capital
&alances of P20,000 for 77 and P+5,000 for 33. ;ne<third of any remaining pro!ts
will &e allocated to 77 and the &alance to 33. f the partnership had net income of
P102,500, how much should &e allocated to Partner 77(
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 3/16
77 1,000 =,250)),500))1,1#>
33 #1,500
7 partnership has the following accounting amounts6
?ales 00,000
@ost of goods sold 00,000
;perating epense 100,000
?alary allocations to partners 1+0,000
nterest paid to &anAs 20,000
Partners' drawings %0,000
What is the partnership net income =loss>(
200,000
**1%0,000
50,000
=+0,000>
BitC, Barc and Bart are partners sharing pro!ts in the ratio of 56+62, respectively. 7s
of 4ecem&er +1, 2009, their capital &alances were P95,000 for BitC, P%0,000 forBarc , and P#0,000 for Bart. ;n Danuary 1, 2010, the partners admitted Eince as a
new partner and according to their agreement, Eince will contri&ute P%0,000 in cash
to the partnership and also pay P10,000 for 15 of Barc's share. Eince will &e given
a 20 share in pro!ts, while the original partners' share will &e proportionately the
same as &efore. 7fter the admission of Eince, the total capital will &e P++0,000 and
Eince's capital will &e P0,000.
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 4/16
)The total amount of goodwill to the old partners , upon the admission of Eince
would &e 6
,000
*15,000
22,000
+,000
)The &alance of Barc's capital,after the admission of Eince would &e6
2,#00
,#00
*9,100
%1,100
The following condensed &alance sheet is presented for the partnership of 7lfa and
Eeda, who share pro!ts and losses in the ratio of #060, respectively6
@ash..................5,000
;ther assets...#25,000
Eeda, loan.........+0,000
T;T7F<<<<<<<<<<<<00,000
accounts paya&le ........120,000
7lfa, capital...................+%,000
Eeda, capital.................2+2,000
T;T7F<<<<<<<<<<<<<<<<<<<<<<<<<00,000
)The assets and lia&ilities are fairly valued on the &alance sheet. 7lfa and 3eds
decide to admit @app as a new partner with a 20 interest. Go goodwill or &onus is
to &e recorded. What amount should @all contri&ute in cash or other assets(
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 5/16
110,000
11#,000
10,000
**15,000
)nstead of admitting a new partner, 7lfa and Eeda decide to li"uidate the
partnership. f the other assets are sold for P500,000, what amount of the availa&le
@7's should &e distri&uted to 7lfa(
255,000
**2+,000
+2,000
+%,000
G, H and I are partners sharing pro!ts and losses in the ratio 6+6+, respectively.
The condensed &alance sheet of GHI Partnership as of 4ecem&er +1, 200# is6
@ash....................50,000
;ther assets.....1+0,000
T;T7F<<<<<<<<<<<<<<1%0,000
Fia&ilities............0,000
G capital.............#0,000
H capital.............0,000
I capital.............0,000
T;T7F<<<<<<<<<<<<<1%0,000
)7ll the partners agree to admit J as a 1$5 partner in the partnership without any
goodwill or &onus. J shall contri&ute assets amounting to
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 6/16
2%,000
10,000
*+5,000
#0,000
)The GHI Partnership is dissolved and li"uidated &y installments. The !rst
realiCation of P0,000 cash is on the sale of other assets with &ooA value of
P%0,000. 7fter payment of the lia&ilities, the cash availa&le is distri&uted to G, H and
I respectively as follows6
+#,000))2,000))2,000
,000))2%,000))2%,000
1#,000))12,000))12,000
**2,000))1+,000))1+,000
The following condensed &alance sheet is presented for the partnership of ?mith
and Dones, who share pro!ts and losses in the ratio of #060, respectively.
;ther assets...............50,000
?mith loan....................20,000
T;T7F<<<<<<<<<<<<<<<<<<<<<<<0,000
accounts paya&le..... 120,000
?mith capital............. 195,000
Dones capital............ 155,000
T;T7F<<<<<<<<<<<<<<<<<<<<< 0,000
The partners decided to li"uidate the partnership. f the other assets are sold for
P+%5,000.
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 7/16
)What amount of the availa&le cash should &e distri&uted to 888(
?mith 1+#,000
Dones 129,000
15#,000
159,000
195,000
Partner Borgan is personally insolvent, owing P#00,00. Personal assets will only
&ring P200,000 when li"uidated. 7t the same time, Borgan has a credit capital
&alance in the partnership of P120,000. The capital amounts of the other partners
total a credit &alance of P250,000. Knder the doctrine of marshalling of assets, how
much the personal creditors of Borgan can collect(
120,000
200,000
*+20,000
50,000
7s of 4ecem&er +1, the &ooAs of 7B partnership showed a capital &alances of6 7<
P0,000: B<P25,000 and <5,000. The partner's pro!t and loss ratio was +6261,
respectively. The partners decided to dissolve and li"uidate. They sold all the
noncash assets for P+,000 cash. 7fter settlement of all lia&ilities amounting to
P12,000, they still have P2%,000 cash left for distri&ution.
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 8/16
)The loss on the realiCation of the noncash assets was
0,000
*2,000
,000
5,000
)7ssuming that any partner's capital &alance is uncollecti&le, the share of 7 in the
P2%,000 cash for distri&ution would &e
19,000
1%,000
*1,%00
0,000
n Bay 2010, melda, a partner of an accounting !rm, decided to withdraw when the
partners' capital &alances were6 BiAee, P#00,000: Raul, P#00,000: and meldaP00,000. t was agreed that melda is to taAe the partnership's fully depreciated
computer with a second hand value of P2,000 that cost the partnership P+#,000. f
pro!ts ad losses are shared e"ually, what would &e the capital &alance of 888 after
the retirement of melda(
BiAe*#0%,000))592,000))#00,000))#12,000
Raul*#0%,000))same
Bac and Dolly, in a Loint venture , contri&uted P150,000 each in order to purchase
canned goods which are sold &y lots at a Mclosing<outM sale. They agreed to divide
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 9/16
their pro!ts e"ually and each shall record his purchases, sales, and epenses in his
own &ooAs. 7fter selling almost all of the canned goods: they wind up their venture.
The following data relate to the venture transactions6
<<Doint venture credit &alance of Bac was P120,000 and Dolly was P105,000
<< penses paid from the Loint venture cash was P15,000 &y Bac and P19,500 &y
Dolly
<< @ost of unsold canned goods, which Bac and Dolly agreed to assume were P,500
and P,000, respectively.
) What was the total sales of the Loint venture(
*559,500
5+#,500
525,000
++,500
) What was the Loint venture gain or loss(
202,000
21+,500
22,000
*2+#,500
)n the !nal settlement, what was the total amount due to Barc including his
investment(
25#,500
25%,000
2#+,50
*2#%,250
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 10/16
t is the contractually agreed sharing of control over an economic activity, and
eists only when the strategic !nancial and operating decisions relating to the
activity re"uire the unanimous consent of the parties sharing control.
@ontrol
* Doint control
?igni!cant nNuence
@ontrolling interest
t is a party to a Loint venture and does not have Loint control over that Loint venture
Eenturer
* nvestor in a Loint venture
nvestor with a power to govern the !nancial and operating policies
Gone of these
;n ;cto&er 1, 2010, 7, 3 and @ entered into a Loint venture &usiness. They were to
marAet a special alarm device. The venture pro!ts and losses were to &e shared into
56+62 ratio, respectively. ;n 4ecem&er +1, 2010 while the Loint venture is still
uncompleted, the three participants decided to recogniCe the pro!ts or losses for
three months period. The inventory is listed at 25 a&ove cost at P50,000. The Loint
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 11/16
venture account has a de&it &alance of P2,000. Go separate &ooAs are maintained
for the Loint venture.
)What was the Loint venture pro!ts =losses> for the three months period(
*1#,000
2#,000
=2,000>
1+,5000
)What were the shares of 7, 3, and @ in the pro!ts =losses>(
7.,..3...@
=12,000> )=200>)=,%00>
**%,000),%00)+,200
1+,000),%00)5,200
#,50),050)2,00
The following were found in your eamination of the interplant accounts &etween
the ome ;Oce and the 3utuan 3ranch6
1. Transfer of !ed assets from ome ;Oce amounting to P5+,9#0 was not &ooAed
&y the &ranch
2. P10,000 covering marAeting epense of another &ranch was charged &y ome
;Oce to 3utuan.
+. 3utuan recorded a de&it note on inventory transfers from ome ;Oce of P5,000
twice.
. ome ;Oce recorded cash transfer of P#5,00 from 3utuan 3ranch as coming
from 4avao 3ranch
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 12/16
5. 3utuan reversed a previous de&it memo from @agayan de ;ro 3ranch amounting
to P10,500. ome ;Oce decided that this charge is appropriately 4avao 3ranch's
cost.
#. 3utuan recorded a de&it memo from ome ;Oce of P,#50 as P5#0
) The net adLustment in the home oOce &ooAs related to the 3utuan 3ranch @urrent
account is6
*5,00
#5,00
%#,200
9,%20
)The net adLustment in 3utuan's &ooAs related to the ome ;Oce account is6
++,++5
+1,50
*20,950
10,50
)3efore the a&ove discrepancies were given eect,the &alance in the home oOce
&ooAs of its 3utuan 3ranch @urrent account was de&it &alance of P1#5,920. The
unadLusted &alance in the 3utuan 3ranch &ooAs of its ome ;Oce @urrent accounts
must &e6
92,++#
9%,2+0
10,500
*111,10
)The adLusted &alance of the reciprocal accounts is6
%,%0
*90,220
99,200
109,120
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 13/16
7t the end of 200%, the &ranch reported an inventory of P15,#25. The home oOce
&ills this &ranch at 125 of cost. 4uring 2009, goods costing P+00,000 were
shipped to the &ranch. The account Mallowance for overvaluation of &ranch
inventoryM after adLustment, shows a &alance of P1#,250 at the end of the year.
)What was the amount of inventory at Danuary 1, 2009 at cost(
*12,500
15,#25
19,5+1
2%,125
)What was the amount of ending inventory at &illed price(
+09,+5
2,500
*%1,250
#5,000
)What was the amount of allowance for overvaluation &efore adLustments(
#1,%5
***%,125
20,+12
20,000
)What was the amount of ending inventory at cost(
*#5,000
%1,250
#1,%5
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 14/16
15,#25
Gew ra @orp. &ills its newly esta&lished &ranch for merchandise at 10 of cost. 7t
the end of its !rst month, the &ranch reported, among other things, the following6
Berchandise from ome ;Oce =at &illed price>...................................2%,000
Berchandise purchased locally &y &ranch...........................10,000
nventory, ?eptem&er +0, of which P2,000 are of local purchases...9,000
Get sales for month.................................+,500
)The &ranch inventory at cost should &e recorded at
+%,000
*,000
9,000
Gone of the a&ove
)The gross pro!t of the &ranch in so far as the ome ;Oce is concerned was
22,500
1,500
22,90
*20,500
t is the entity that has the controlling !nancial interests
nvestor
*parent
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 15/16
7ssociate
7Oliate
Poe, nc. ac"uired 100 of ?haw @o. in a &usiness com&ination on ?eptem&er +0,
2009. 4uring 2009, Poet declared "uarterly dividends of P25,000 and ?haw declared
"uarterly dividends of P10,000. Knder the purchase method of accounting for the
&usiness com&ination, what amount should &e reported as dividends declared in the
4ecem&er +1, 2009 consolidated statement of retained earnings(
*100,000
105,000
1+0,000
10,000
Red @orp. has a 90 interest in White @o.: while the latter has an %0 interest in
?ol @orp. -or the year ended 4ecem&er +1, 2009, the net income from own
operations of these three companies were6 Red P1,000,000 : White P500,000 : and
?ol P250,000. What is the amount of minority interest =Goncontrolling interest> in
net income for 2009(
120,000
100,000
*0,000
50,000
7/23/2019 PUNZALAN
http://slidepdf.com/reader/full/punzalan 16/16