Scribd
Upload
71 views2 pages

Number 9 Accounting

On December 31, 2018, ABC Partnership's financial statements show capital balances for partners A, B, and C. On January 1, 2019, partner C retired from the partnership and received a payment. An asset was undervalued at the time of C's retirement. The question asks for A's capital balance after C's retirement.

Uploaded by

elsana philip
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
71 views2 pages

Number 9 Accounting

On December 31, 2018, ABC Partnership's financial statements show capital balances for partners A, B, and C. On January 1, 2019, partner C retired from the partnership and received a payment. An asset was undervalued at the time of C's retirement. The question asks for A's capital balance after C's retirement.

Uploaded by

elsana philip
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
You are on page 1/ 2

Number 9 (Retirement of partner)

On December 31, 2018, ABC Partnership’s Statement of Financial Positions shows that A, B and
C have capital balances of P500,000, P300,000 and P200,000 with profit or loss ratio of 1:3:6.
On January 1, 2019, C retired from the partnership and received P350,000. At the time of C’s
retirement, an asset of the partnership is undervalued.

What is the capital balance of A after the retirement of C?


A. 462,500
B. 537,500
C. 562,500
D. 525,000

Number 10 (Retirement of partners)

On December 31, 2018, ABC Partnership’s Statement of Financial Position shows that A, B and
C have capital balances of P400,000, P300,000 and P100,000 with profit or loss ratio of 1:4:5.
On January 1, 2019, C retired from the partnership and received P80,000. At the time of C’s
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
C. 316,000
D. 320,000

Page 4
Number 11 (Partnership Dissolution – Admission of New Partner by Investment)

On December 31, 2018, the Statement of Financial Position of ABC Partnership provided the
following data with profit or loss ratio of 1:6:3:
Current Assets 1,300,000 Total Liabilities 300,000
Noncurrent Assets 2,000,000 A, Capital 1,400,000
B, Capital 700,000
C, Capital 900,000
On January 1, 2019, D is admitted to the partnership by investing P1,000,000 to the partnership
for 20% capital interest.
If the all the assets of the existing partnership are properly valued, what is the capital balance of
C after the admission of D?
A. 960,000
B. 900,000
C. 840,000
D. 1,200,000

Numbers 12 and 13 (Admission of new partner by investment)

On December 31, 2018, the Statement of Financial Position of ABC Partnership provided the
following data with profit or loss ratio of 5:1:4:
Current Assets 1,500,000 Total Liabilities 500,000
Noncurrent Assets 2,000,000 A, Capital 1,100,000
B, Capital 1,200,000
C, Capital 700,000
On January 1, 2019, D is admitted to the partnership by investing P500,000 to the partnership for
10% capital interest. The total agreed capitalization of the new partnership is P3,000,000.

12. What is the capital balance of D after his admission to the partnership?
A. 500,000
B. 300,000
C. 350,000
D. 400,000

13. What is the capital balance of C after the admission of D to the partnership?
A. 580,000
B. 820,000
C. 500,000
D. 780,000

You might also like