28689048-Practical-Accounting-Problems-2-First-Preboard-Examination-Sunday-February-15-2009

28689048-Practical-Accounting-Problems-2-First-Preboard-Examination-Sunday-February-15-2009

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CPA REVIEW SCHOOL OF THE PHILIPPINES M a n i l a PRACTICAL ACCOUNTING PROBLEMS 11 Sunday, February 15, 2009 First Preboard Examination 3:00 p.m. to 5:00 p.m. MULTIPLE CHOICE - MARK FULLY with Pencil No. 2 the letter of your choice on the answer sheet provided. Make the mark DARK but do not use too much pressure. ERASURES ARE STRICTLY NOT ALLOWED. 1. Aba, Baba and Caca decided to dissolve their partnership on May 31, 2009. On this date, their capital balances and profit-sharing percent were as follows Aba P50,000 40% Baba 60,000 30% Caca 20,000 30% The net income from January 1 to May 31, 2009 was P44,000. Also, on May 31, 2009, the partnership’s cash and liabilities, respectively, were P40,000 and P90,000. For Aba to receive P55,200 in full settlement of his interest in the partnership, how much must be realized from the sale of the partnership’s non-cash assets? a. P 63,000 c. 81,000 b. 211,000 d. 193,000 Solution: 43 3 1 0 Cash Non-cash = Liabilities a b c Balance 40 180 = 90 50 60 20 Adj Assets 44 = 18 13 13 Adj Liabilities = NI/NL = Sale of Assets 193 (224) = (12) (9) (9) Liq. Expenses = Pay Creditors Bal B4 Sett'nt 55 2. On May 1, 2009, the business assets of Oliver and Twist were as follows: Oliver Twist Cash P11,000 P22,354 Accounts Receivable 234,536 567,890 Inventories 120,035 260,102 Land 603,000 - Building - 428,267 Furniture and fixtures 50,345 34,789 Other assets 2,000 3,600 ______________________________________________________________________ Total P1,020,916 P1,317,002 Accounts payable P178,940 P243,650 Notes payable 200,000 345,000 Oliver, Capital 641,976 - Twist, Capital - 728,352 _____________________________________________________________________ Total P1,020,916 P1,317,002 Oliver and Twist agreed to form a partnership contributing their respective assets and equities subject to the following adjustments: a. Accounts receivable of P20,000 in Oliver’s books and P35,000 in Twist’s books are uncollectible b. Inventories of P5,500 and P6,700 are worthless in Oliver’s and Twist’s books respectively.
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c. Other assets of P2,000 and P3,600 in the respective books of Oliver and Twist are to be written off Peter offered to join for a 20% interest in the firm. How much cash should be contributed a. P330,870 c. P344,237 b. P337,487 d. P324,382 Solution: ICC Ad'L Inv/With FCC Bonus GW AC 1,297,528 - 1,297,528 - - 1,297,528 20% P - - 324,382 - - 324,382 Total 1,297,528 - 1,621,910 - - 1,621,910 3. Tom, a partner in TJ Partnership, has a 30% share in the partnership’s profit and loss. His capital account had a net decrease of P60,000 in year 2. In year 2, he withdrew P130,000 from the partnership against his capital and invested property, valued at P25,000, in the partnership. The net income of the partnership in year 2 is a. P150,000 c. P350,000 b. P233,333 d. P550,000 Solution: Share of Tom 45,000 Beg, assumed 60,000 30% investment 25,000 130,000 Withdrawal Total NI 150,000 30% of Net Income (Squeeze) 45,000 End, should be zero
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28689048-Practical-Accounting-Problems-2-First-Preboard-Examination-Sunday-February-15-2009

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