/ Hart IL Problem Sulsjng 4 ' - $A j On December VC Partch ternett bie fi 5e have capital | £500,000, PJUG,000 and PZU0,00 wath prulit ut bons Fate : ces i ys wu MeO) At the wane of ( January 1, 2021, C reured from the partnership ant received 7350.08 At the ow 1 retment, an asset of the pasthership is undervalued What is the capital balance of A after the retirement of CT a 462,500 b $37,500. © 562,500 4 $25,000 On December 31, 2020, ABC Partnership's Statement of Financial Position shows that A. Band « have capital balances of P400,000, P300,000 and P100,000 with profit of Joss ratio of 145 O00 January 1, 2021, C retired from the partnership and received P80,000 At the time of C > retirement, the assets and liabilities of the partnership are properly valued What is the capital balance of B after the retirement of C? a. 284,000 b 308,000 316,000 d. 320,000 On December 31, 2020, the unadjusted Statement of Financial Position of UPC Partnership shows the following data with profit or loss sharing agreement of 2 3.5 Total Assets P100,000,000 Total Liabilities 40,000,000 U, Capital 10,000,000 F, Capital 20,000,000 ©, Capital 30,000,000 On December 31, 2020, U decided to retire from the partnership. However, before the distribution of cash to U, the following data errors were discovered during the pre-retirement audit © During 2020, the property, plant and equipment has not be subject to revaluation surplus by P15,000,000 © The 2020 net income is overstated by P5,000,000 After the adjustment, U received retirement pay of 15,000,000 for his capital interest. What is the capital balance of F after the retirement of U? a. 23,000,000 b. 21,000,000 cc. 18,875,000 d. 21,875,000 S, A and T are partners with capital balances of P784,000, P2,730,000 and P1,190,000 respectively, sharing profits and losses in the ratio of 3:2:1. D is admitted as a new partner bringing with him expertise and is to invest cash for a 25% interest in the partnership which includes a credit of P735,000 for bonus upon his admission How much cash should D contribute? Ce wel eta Sie b. 2,100,000 « " c. 1,575,000 , “ 4. "s88.o00 8603Page 4 8. E and M are partners with capital balances of P30,000 and P70,000 stespectively. E has a 30% interest in profits and losses. At this time, the partnership has decided to admit R and L as new Partners. R contributes cash of P53,000 for a 20% interest in capital and a 30% interest in profits and losses. L contributes cash of P10,000 and an equipment for a 25% interest in capital and 35% interest in profits and losses. {fGonus amounting to P18,250 is given to the old partners, what is the value of the equipment contributed by L? ; ‘ a , 31,750 Hep HAD = BONE HOE pare 43,750 1 _ 50,000. : 50,138 ; s aeoe 9. Juliet and Kilo have capital balances of P200,000 and P220,000 respectively before admission of Lima. Their profit and loss agreement was 35:65. Lima was to be admitted for 40% interest in the Partnership and 20% in the profits and losses by contributing a used machine which had a cost of P205,000 and an appraised value of P180,000. After admission of Lima, Juliet and Kilo agreed to share profits and losses equally. At the end of the year the new partnership generated net income of 130,000. 1. How much is the capital balance of Kilo after admission of Lima? a. 174,500 b. 259,000 ce. 181,900 d. 240,000 2. How much is the capital balance of Juliet at the end of the year? a. 231,000 b. 221,000 c. 224.500 a. 247.000 3. Assuming there is an implied undervaluation or overvaluation of an asset, how much is the undervaluatioa or (overvaiuation) of the asset? a. 300,000 b. (150,009) ©. (300,000) d. 150,000 * Assuming there is an implied uadervaluation ov overyaluation of an asset, how much is the capital balauce of Kile at the end of the year? a. 467,000 b. 77,000 ©. 369,500 d. 174,500 8603Page 2 rt I: Problem Solvi 1. On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the following data: Cash 1,000,006 Other Liabilities 2,000,000 Receivable from A 500,000 Payable to B 1,000,000 Other noneash asses. 2,000,000 Payable to C 100,000 A, Capital 700,000 B, Capital (650,000) C, Capital 350,000 On January 1, 2021. the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other noncash assets were sold for P1,S00,000. Liquidation expenses amounting to P100,000 were incurred. liquidation? 1. How much cash was received by B at the end of partnershi a. 250,000 b. 150,000 ec. 290,000 270,000 a6 2. How much cash was received by C at the end of partnership liquidation? a. 270,000 b. 150,000 ©. 350,000 d. 220,000 2. D, E and F are partners in DEY Partnership with profit or loss sharing ratio of 6:1:3. Due to disagreement, the partners decided to liquidate their business with pre-liquidation statement of ented below financial position pre Cash PaM Liabilities P10M Noneash assets 17™M D, Capital IM £, Capital 4M F, Capital 3M The following additional nnes are provided. Alll partners are legally declared to be personally insolvent. . © Allnoncash assets are sold during the liquidation process # Liquidation expenses amounting to P2M were paid e Ereceives a total of P2.500,000 at the end of liquidation. 4. What is the amount received by F at the end of liquidation? a. 500,000 b. 2,500,000 ©. 0 d. 3,500,000 2, Using the same data, what is the net proceeds from the sale of all noneash assets? a. 14,000,000 b. 10,000,000 c. 12,000,000 d. 8,000,900 enn