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The document contains 5 multiple choice questions regarding partnership accounting: 1. The first question asks to identify the capital balances of three partners on December 31, 2010 given contributions, drawings, and additional capital throughout the year. 2. The second question asks to calculate one partner's share of a partnership's distributive income given the profit sharing ratios. 3. The third question asks to calculate one partner's bonus which is a percentage of the partnership's net income after deducting the bonus. 4. The fourth question provides financial information for a partnership and asks to calculate one partner's bonus based on the information. 5. The fifth question asks to calculate each partner's share of partnership profits given

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216 views1 page

Rev 1

The document contains 5 multiple choice questions regarding partnership accounting: 1. The first question asks to identify the capital balances of three partners on December 31, 2010 given contributions, drawings, and additional capital throughout the year. 2. The second question asks to calculate one partner's share of a partnership's distributive income given the profit sharing ratios. 3. The third question asks to calculate one partner's bonus which is a percentage of the partnership's net income after deducting the bonus. 4. The fourth question provides financial information for a partnership and asks to calculate one partner's bonus based on the information. 5. The fifth question asks to calculate each partner's share of partnership profits given

Uploaded by

Jessa Beloy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1.

EMONG, NWONG and ERRO formed a partnership on January 1, 2010, and contributed P150,000,
P200,000 and P250,000, respectively. Their articles of co-partnership provide that the operating income
be shared among the partners as follows: as salary, P24,000 for EMONG, P18,000 for NWONG, and
P12,000 for ERRO; interest of 12% on the average capital during 2010 of the three partners; and the
remainder in the ratio of 4:2:4, respectively.

The operating income for the year-end December 31, 2010 amounted to P200,000. EMONG contributed
additional capital of P30,000 on July 1, and made a drawing of P10,000 on October 1; NWONG contributed
additional capital of P20,000 on July 1, and made drawing of P10,000 on October 1; and ERRO made a
drawing of P30,000 on October 1.The partners’ capital balances on December 31, 2010 are:
EMONG NWONG ERRO
a. P222,500 P257,400 P320,100
b. P241,980 P266,940 P351,080
c. P242,500 P267,400 P290,100
d. P252,500 P277,400 P320,100

2. HAN, BUYU and JILIO are partners who share in the partnership’s profit and losses in the ratio of 2:3:5.
During the year, the partnership’s distributive income is P1,500,000. What is the amount of BUYU’s
share from the partnership’s income?
a. P750,000 b. P625,000 c. P300,000 d. P450,000

3. Bikog, an active partner in the Bikog and Lusay partnership, receives an annual bonus of 25% of
partnership net income after deducting the bonus. For the year ended December 31, 2010, partnership
net income before the bonus amounted to P300,000. Bikog’s 2010 bonus should be:
a. 56, 250 b. 60,000 c. 62, 500 d. 75,000

4. On Jan. 2, 2010, Basilio and Quezada formed a partnership. Basilio contributed capital of P175,000 and
Quezada, P25,000. They agreed to share profits and losses in the ratio of 8:2, respectively. Quezada
is the general manager and works in the partnership full time. Quezada is given a salary of P5,000 a
month; an interest of 5% of the beginning capital (of both partners) and a bonus of 15% of profit
before salary, interest and bonus.

The statement of comprehensive income of the partnership for the year ended Dec. 31, 2010 follows:

Net sales P875,000


Cost of goods sold 700,000
Gross profit 175,000
Expenses ( including the salary,interest and the bonus) 143,000
Profit P32,000

The amount of bonusto Quezada in 2010 amounted to:


a. P13,304 c. P18,000
b. P16,456 d. P20,700

5. Ravelo and Febrero are partners agreeing to allow monthly salaries of P6,000and P5,000, respectively;
6% interest on the capital investment at the beginning of the year of P300,000 and P230,000,
respectively; and balance equally. The first year registered profit of P100,000. The partner’s share
should be
c. a. Ravelo, p50,000; Febrero, P50,000 c. Ravelo, P56,600; Febrero, P43, 500
d. b. Ravelo, P54,500; Febrero, P45,500 d. Ravelo, P58,100; Febrero, P41,900

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