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Quiz 101

The document contains a quiz with multiple choice and short answer questions about partnerships: 1) Lady had a 30% share in partnership profits/losses. Her capital account decreased by $120k but she withdrew $260k and contributed $50k of property. The question asks for the partnership's 2011 profit. 2) A partner invested a building valued at $400k which was assumed by the partnership along with a $125k mortgage. The question asks what the partner's capital account will be credited. 3) The question provides profit/loss sharing ratios and capital balances for three partners, and asks to allocate $250k of partnership income and prepare a journal entry to distribute it. 4)

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Mohammad Lomondot Ampaso
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405 views

Quiz 101

The document contains a quiz with multiple choice and short answer questions about partnerships: 1) Lady had a 30% share in partnership profits/losses. Her capital account decreased by $120k but she withdrew $260k and contributed $50k of property. The question asks for the partnership's 2011 profit. 2) A partner invested a building valued at $400k which was assumed by the partnership along with a $125k mortgage. The question asks what the partner's capital account will be credited. 3) The question provides profit/loss sharing ratios and capital balances for three partners, and asks to allocate $250k of partnership income and prepare a journal entry to distribute it. 4)

Uploaded by

Mohammad Lomondot Ampaso
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Quiz101

Name: Score:

1. Lady, a partner in the Lady, Gaga & Co., has a 30% participation in partnership
profits and losses. Lady’s capital account has a net decrease of P120, 000 during the
calendar year 2011. During 2011, Lady withdrew P260, 000 (charged against his capital
account) and contributed property valued at P50, 000 to the partnership. What was
the profit of the Lady, Gaga & Co. for year 2011? (10points)

2. A partner invested into a partnership a building with P250, 000 carrying value and
P400, 000 fair market value. The related mortgage payable of P125, 000 was assumed
by the partnership. As a result of the investment, the partner’s capital account will be
credited for? (5points)
3. Norrudin, Norsal, and Nasheb operate a partnership with a complex profit and loss
sharing agreement. The average capital balance for each partner on December 31,
2006 is $300,000 for Norrudin, $250,000 for Norsal, and $325,000 for Nasheb. An 8%
interest allocation is provided to each partner. Norrudin and Norsal receive salary
allocations of $10,000 and $15,000, respectively. All residual income is allocated in
the ratios of 2:3:5 to Norrudin, Norsal, and Nasheb, respectively.
Required:

 Prepare a schedule to allocate income to the partners assuming that


partnership net income is $250,000. (15points)
 Prepare a journal entry to distribute the partnership's income to the partners.
(5points)
4. What is the dissolution of a partnership? (5points)
Quiz101
Name: Score:

1. Lady, a partner in the Lady, Gaga & Co., has a 30% participation in partnership
profits and losses. Lady’s capital account has a net decrease of P120, 000 during the
calendar year 2011. During 2011, Lady withdrew P260, 000 (charged against his capital
account) and contributed property valued at P50, 000 to the partnership. What was
the profit of the Lady, Gaga & Co. for year 2011? (10points)

2. A partner invested into a partnership a building with P250, 000 carrying value and
P400, 000 fair market value. The related mortgage payable of P125, 000 was assumed
by the partnership. As a result of the investment, the partner’s capital account will be
credited for? (5points)
3. Norrudin, Norsal, and Nasheb operate a partnership with a complex profit and loss
sharing agreement. The average capital balance for each partner on December 31,
2006 is $300,000 for Norrudin, $250,000 for Norsal, and $325,000 for Nasheb. An 8%
interest allocation is provided to each partner. Norrudin and Norsal receive salary
allocations of $10,000 and $15,000, respectively. All residual income is allocated in
the ratios of 2:3:5 to Norrudin, Norsal, and Nasheb, respectively.
Required:

 Prepare a schedule to allocate income to the partners assuming that


partnership net income is $250,000. (15 points)
 Prepare a journal entry to distribute the partnership's income to the partners.
(5points)
4. What is the dissolution of a partnership? (5points)

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