CHAPTER 3.pdf - Partnership Dissolution Changes in...

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Partnership Dissolution Changes in Ownership 48 CHAPTER 3 MULTIPLE CHOICE ANSWERS AND SOLUTIONS 3-1: c Implied capital of the partnership (P90,000/20%) P450,000 Actual value of the partnership ( 420,000 ) Goodwill P 30,000 AQUINO LOCSIN DAVID HIZON Capital balances before Goodwill P252,000 P126,000 P42,000 Goodwill to old partners __18,000 ___9,000 __3,000 _____ Total P270,000 P135,000 P45,000 Purchase by Hizon (20%) ( 54,000 ) ( 27,000 ) ( 9,000 ) _90,000 Capital balances after admission P216,000 P108,000 P36,000 P 90,000 3-2: b AQUINO LOCSIN DAVID HIZON Capital balances before admission P252,000 P126,000 P42,000 Purchase by Hizon (20%) ( 50,400 ) ( 25,200 ) ( 8,400 ) _84,000 Capital balances after admission P201,600 P100,800 P33,600 P 84,000 3-3: d AQUINO LOCSIN DAVID TOTAL Capital transferred P 50,400 P 25,200 P 8,400 P 84,000 Excess divided using profit and loss ratio __3,600 __1,800 ___600 __6,000 Cash distribution P 54,000 P 27,000 P 9,000 P 90,000 3-4: b Selling price P132,000 Interest sold (444,000X1/5) ( 88,800 ) Combine gain P 43,200 3-5: b Implied value of the partnership (P40,000/1/4) P160,000 Actual value ( 140,000 ) Goodwill P 20,000 BERNAL CUEVAS DIAZ Cash balances P 80,000 P40,000 P 20,000 Goodwill, Profit and Loss ratio __12,000 __6,000 __2,000 Total P 92,000 P46,000 P 22,000 Capital Transfer (1/4) ( 23,000 ) ( 11,500 ) ( 5,500 ) Capital balances after admission P 69,000 P34,500 P 16,500
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49 Chapter 3 3-6: b BANZON CORTEZ TOTAL Capital Transfer (20%) P 16,000 P 4,000 P20,000 Excess, Profit and Loss ratio __6,000 __4,000 _10,000 Cash distribution P 22,000 P 8,000 P30,000 3-7: d PEREZ CADIZ TOTAL Capital balances beginning P 24,000 P 48,000 P 72,000 Net profit, 1:2 5,430 10,860 16,290 Drawings ( 5,050 ) ( 8,000 ) ( 13,050 ) Capital balances before admission P 24,380 P 50,860 P 75,240 Capital transfer (squeeze) ( 5,570 ) ( 13,240 ) (18,810 ) (1/4) Capital balances after admission 1:2 P 18,810 P 37,620 P 56,430 Capital transfer P 5,570 P 13,240 P18,810 Excess, 1:2 __3,730 __7,460 _11,190 Cash P 9,300 P 20,700 P30,000 3-8: a Total agreed capital (P150,000/5/6) P180,000 Diana's Interest 1/6 Cash distribution P 30,000 3-9: a Total agreed capital (P36,000/1/5) P180,000 Total contributed capital (80,000+40,000+36,000) ( 156,000 ) Unrecognized Goodwill P 24,000 3-10: b Contributed Agreed Increase Capital Capital (Dec.) Old partners P110,000 P100,000 (P 10,000) New partner __40,000 __50,000 _10,000 Total P150,000 P150,000 P Ben, capital balance before admission P 60,000 Bonus share to new partner (10,000X60%) ( 6,000 ) Ben, capital after admission P 54,000 3-11: c Total agreed capital (P40,000+20,000+17,000) P 77,000 Pete's interest 1/5 Pete's agreed capital balance P 15,400
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Partnership Dissolution Changes in Ownership 50 3-12: b Contributed Agreed Increase Capital Capital (Dec.) Old partner P 65,000 P60,000 (P 5,000) New partner 25,000 (1/3 ) 30,000 _5,000 Total P 90,000 P90,000 P FRED RAUL LORY Capital balances before admission P 35,000 P30,000 Investment by Lory 25,000 Bonus to Lory ( 3,500 ) ( 1,500 ) __5,000 Capital balances after admission P 31,500 P28,500 P 30,000 3-13: c Total agreed capital (90,000+60,000+70,000) P220,000 Augusts' interest _____1/4 Agreed capital P 55,000 Contributed capital __70,000 Bonus to June & July P 15,000 JUNE JULY Capital balances before admission P90,000 P 60,000 Bonus from August, equally __7,500 __7,500 Capital balances after admission P97,500 P 67,500 3-14: a Total agreed capital (52,000 + 88,000)/80%) P175,000 Total capital of Mira & Nina after admission ( 140,000 ) Cash paid by Elma P 35,000 3-15: a Total agreed capital (P41,600/2/3) P 62,400 Total contributed capital (P23,000+18,600+16,000) ( 57,600 ) Goodwill to new partner, Ang P 4,800 LIM ONG ANG Capital balances before admission P23,000 P 18,600 Investment by Ang 16,000 Goodwill to August _____ ______ __4,800 Capital balances after admission P23,000 P 18,600 P20,800
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