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Under the principle of mutual agency, a partner has the right to bind the partnership to contracts.Select one:TrueAll of the following are correct about partnership, exceptb. Death of a partner does not dissolve the partnership.On July 1, 20x8, Happy and Mill formed a partnership and agreed to share profits and losses in theratio of 4:6, respectively. Happy contributed a parcel of land that cost P30,000 but according toHappy has a fair market value of P45,000. Mill contributed P50,000 cash. The land was sold forP60,000 on July 1, immediately after formation of the partnership. At what amount should Happy'scapital account be recorded on the formation of the partnership?On April 1, 20x8, Ben and Ten decided to combine their businesses and form a partnership. Theirbalance sheets on April 1, before adjustments, showed the following:BenTenCashP 17,000P 18,000Accounts receivable17,50033,000Inventories40,00029,000Furniture and fixtures (net)30,00025,000Office equipment (net)80,0007,500TotalP184,500P112,500Accounts payableP 67,500P 53,800Capital117,00058,700TotalP184,500P112,500They have agreed the following items to be recorded in their books:1.Provide 3% allowance for doubtful accounts.2.Ben’s furniture and fixtures should be P22,000, while Ten’s office equipment is under-depreciated by P500.3.Rent expense incurred previously by Ben was not yet recorded amounting to P3,000, whilesalary expense incurred by Ten was not also recorded amounting to P4,000.4.The fair market value of inventory amounted to:oBen, P35,000oTen, P40,000The net (debit) credit adjustment for Ben and Ten should be:
When the partners invest assets other than cash in a partnership, their capital accounts should becredited with the current fair market values of the assets.A partnership has a juridical personality separate and distinct from that of each of the partners.Compute the total assets after formation.:Which of the following is not a characteristic of a partnership?Mega and Star formed a partnership each contributing assets to the business. Mega contributedequipment with a current market value in excess of its cost. Star contributed land with a mortgagepayable attached on it, to be assumed by the partnership. At what should the partnership recordeach of the following assets?