RIZAL TECHNOLOGICAL UNIVERSITY

Boni Avenue, Mandaluyong City

Junior Philippine Institute of Accountants

SET B

ANSWER KEY 1ST SEM._SCHOOL YEAR 2017-2018

MOCK COMPREHENSIVE EXAMINATION ADVANCED ACCOUNTING 1

1. B 13. A 25. B 37. A 49. B 38. Sales P46,500

2. B 14. C 26. A 38. C 50. A .70
3. D 15. A 27. C 39. C 51. C Cost of Sales P32,550
4. B 16. D 28. D 40. C 52. D Freight 1,100
5. A 17. B 29. D 41. A 53. C Cost of sales with Freight P33,650
6. D 18. C 30. C 42. D 54. B
7. C 19. D 31. A 43. D 55. B 39. Purchases P300,000
8. D 20. A 32. C 44. C 56. D Expenses 34,500
9. C 21. D 33. A 45. D 57. A Bal. End 225,000
10. B 22. A 34. D 46. A 58. C Sales P559,500
11. B 23. D 35. A 47. A 59. C
40. Installment Accounts Receivable, 12/31/08 P 840,000
12. C 24. C 36. A 48. D 60. B
Multiplied by: Gross profit rate:
(339,750/755,000) 45%
31. Under the cost recovery method, no profit is recognized
Deferred gross profit, December 31, 2016 P 378,000
until the cumulative receipts exceed the cost of the asset
sold. This means that the entire gross profit 41.
(P5,000,000-P4,000,000 = P1,000,000) and the 2016 CAPITAL ERICKA
CASH Php. 1,200,000.00
interest revenue (P132,000) will be deferred until cash EQUIPMENT 1,250,000.00
collections exceed P 4,000,000. Therefore, no income is BUILDING 2,750,000.00
SUPPLIES 100,000.00
recognized in 2016.
Total asset invested Php. 5,300,000.00
32. 15% (P115,000 – B) = P 15,000 Less: Mortgage loan 1,300,000.00
Capital balance Php. 4,000,000.00
33.
T O N 42. Bal. End P225,000
Bal. before liquidation P40,000 P25,000 P5,000 Unsold Merch. 11,500
Loss on realization Total P236,500
(P28,000-P70,000) 3:2:1 (21,000) (14,000) (7,000)
Share equally 50%
Balances P19,000 P11,000 P(2,000)
Share in Joint Venture P118,250
Loss on possible insolvency of N:
3:2 (1,200) (800) 2,000 43. 215 @ 500 = P107,500 – 2100 = P 105,400
Cash received P17,800 P10,200 0
44. Reduction in capital:
34.
F&F at carrying value Php.115,000.00
35. Unrealized gross profit/gross profit rate = Less: F&F at second-hand value 100,000.00
192,000/(66 2/3/166 2/3) P 480,000 (FV)
Add: Collections 360,000 Decrease in F&F Php. 15,000.00
Installment sales P 840,000 Multiply by: P&L 1/3
Reduction in capital Php. 5,000.00
36. Credit Bal. in the Joint Venture Account P90,000
Unsold Merch. 25,000 45. Notes payable to Legarda:
Net profit before bonus P115,000 Unadjusted capital of Legarda Php. 700,000.00
Bonus (15,000) Less: Share in the decrease of 5,000.00
F&F
Net profit after bonus P100,000
Adjusted capital of Legarda Php. 695,000.00
37. Total Billed P843,750 Less: F&F received at second- 100,000.00
AR Balance (300,000) hand value
Total Collections P543,750 Value of notes payable Php. 595,000.00
Amt. Deposited (500,000)
Amt. not yet deposited P 43,750

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Incidentally, the journal entry would be: Balogbog
Legarda, capital Php. 700,000.00 January P120,000 x 5 (Jan.-May.) P600,000
June P 105,000 x 5 (June-Oct.) 525,000
Armuela, capital 5,000.00
Nov. P155,000 x 2 (Nov.-Dec.) 312,000
Lunes, capital 5,000.00 P1,435,000
F&F, carrying value Php. 115,000.00
Divided by 12 months
Notes payable 595,000.00
Weighted Average Capital P 119,583
46. Sales P46,500  Drawings are ignored as stated in the problem.
Sales Discount (36,690 / .98) – 39690 810
P45,690
Cost of Sales 33,650 51. Home Office – Current P17,500
Gross Profit P12,040 Net Profit 8,680
Expenses: Branch Current P26,180
Selling P2,820
52. P20,000,000 x 3,000,000 / 15,000,000 = P4,000,000
Administrative 2325
Samples 1900 (7045) 53.
Net Income P4,995 Total capital P174,000
(P50,000+P60,000+P20,000+44,000)
47. Sales P74,000 Total Liabilities 90,000
Cost of Sales Total Assets P264,000
Less: Cash 40,000
Shipments P67,680
Non-cash assets P224,000
Ending Inventory (9,180) 58,500
Less: Loss on realization:
Gross Profit P15,500 (P52,200-P67,600*) / 40% 31,000
Expenses (6,820) Proceeds from sale P193,000
Net Profit P8,680 *(P50,000 + (P44,000 x 40%)

48. Contract Price P10,500,000 54. 186 @ 80 = P 6880

Total Estimated Cost 129 @ 140 = 18060
Cost to Date P 3,150,000 Total P 29,940
Estimated Cost to Complete 6,300,000 (9,450,000)
Total Estimated Income P1,050,000 55. In the formation of a partnership, one or more of the
Percentage of Completion partner will contribute noncash assets to the business
(3,150,000/9,450,000) 33 1/3 such as inventory, land, or equipment, etc.. Retaining
Income P350,000 the recorded cost for such asset would be inequitable to
any partners investing appreciated property. Therefore,
49. Contract Price P15,000,000 the contribution of noncash assets to a partnership
Total Estimated Cost should be recorded based on fair values. In this case, the
(4,650,000 + 10,850,000) (15,500,000) fair value of the land would be measured by its sales
Loss P 500,000 price on the date of sale, Php. 100,000.00.
56.
50. The weighted average capital would be:
CENG FENG TOTAL
Feola Interest on Average
January P100,000 x 6 (Jan.-Jun.) P600,000 Capital:
July P 88,000 x 1 (July) 88,000 Ceng : 60% x 45,000 P27,000 P27,000
August P128,000 x 5 (Aug.-Dec.) 640,000 Feng: 60% x 36,250 P21,750 21,750
P1,328,000 Balance 5,625 5,625 11,250
Divided by 12 months P32,625 P27,375 P60,000
Weighted Average Capital P 110,667
Average Capitals:
 It should be noted that the number of months in the
 Ceng
computation includes the current month (before the
1/1-4/1-----------50,000 x 3 P150,000
date of investment or date of withdrawal) since the
4/1-8/1-----------35,000 x 4 140,000
counting should start at the beginning of the month 8/1-10/1---------45,000 x 2 90,000
(let’s say June 3, therefore the month of June 10/1-12/1-------50,000 x 2 100,000
should be included in the counting to compute the 12/1-12/31------60,000 x 1 60,000
average capital for the P100,000). Divided by: 544,000/12
Weighted-Average Capital P 45,000

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  Feng
1/1-8/1-----------35,000 x 7 P245,000
8/1-9/1----------55,000 x 1 55,000
9/1-10/1---------40,000 x 1 40,000
10/1-12/1--------30,000 x 2 60,000 Prepared by:
12/1-12/31------35,000 x1 35,000
Divided by: 435,000/12
Weighted-Average Capital P 36,250 Diego Melo Buenconsejo
President, RTU-JPIA
57. 7 x 12 x 2000 = P168,000
Commission .15
Net P142,800 Cedric Legaspi Tagala
Expenses (3,000) VP for Information and Publicity, RTU-JPIA
Remittance P139,800 Checked by:
58. Sales P168,000
Cost – 50% (84,000) Prof. Macrina Violeta Vicente-Mutuc, CPA
Expenses (3,000) Faculty, Accountancy/ Adviser,RTU-JPIA
Freight (210)
Commission (25,200) Recommending Approval:
Consignment Profit P 55,590

59. Prof. Elizabeth E. Salvador, CPA

Department Head, Accountancy
Total agreed capital of the new partnership
(P310,000+P200,000+P190,000/80%) P875,000
Approved by:
Less: Contribution of old partners 700,000
Cash Investment of Danielle P175,000
Or, alternatively: Prof. Amelia M. Arganda, CPA
Total agreed capital of the new partnership P875,000 CBET, Dean
Multiplied by: capital interest of Danielle 20%
P175,000

60. Whether there is a profit or a loss, A will have a

greater advantage. When there is a profit, A will obtain
a 20% bonus on profit before the bonus, and also take
40% of the profit after the bonus. B on the other hand,
will receive only 60% of the profit after the bonus. The
following example illustrates this:
A B Profit
P & L ratio 40% 60%
20 % bonus 200 0 200
Share in profit 320 480 800
Total distribution 520 480 1000

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