Ar partner a who is the chef gets a salary of p25000

·
Ar-
Partner
A, who Is the
chef, gets a salary
of P25,000 a ·
/ year;
Partne_r-
B, ·who is still teaming, gets a ,
illary of ,
P10~000.
.
B. Interest
Is Imputed
on the average capi
tal
balances at
150/o.
C. Any remaining profits
or
losses are
to be
shared
equally.
The average
capital balances
dur
ing the year .were P20,000
and PS0,000
for Pa
ner A and Partner B, respectively, .
48.
lf the partn
Ip net
Income for
the year Is
Pl 7,500,
calcul
at e amount
by
which the
net Income was
ocated. ·
, ~
PO
~28,
_000
b. P20,800
d. P20,080
.49 . The net
Income
was
distributed
to . the partners as
~ows:
• ·
. I..!)
Partner A, PS,000; Partner
B,
P9,500
b. Partner A, PB,750; Partner B,
pB ,750
c.
Partner
A, P12,SOO;
Partner B PS,000
J!i;::::!'artner A, P14,000·; Partner
B, P
3,500
SO. The Journal entry
corded for the dlstrib~
~~
on of prof!_t
lnd~ded
·
A debit
Interest expense
of
Pl0,500
X
A It
to A, capital of
PB,000 ,
..._
Prepaid
expenses
Accounts
payable
Ac:avecl
expenses •
Net
asset
(124,000)
P
◄ 2s,00J
(124,000,,.
·~--,
(8,000)
P474,200
debit
to Salary expense
of
PJS,000
,>--
A debit
to Income Summary
of Pt 7,500
uch Is the total
agreed
capital upon formation?
OendO
P711,300 C,
P790,333
' ....
b , P730,933 ·
d. P713,100
·
r;;__~_
.'.:-!..:
1 J.!. :\ !!L ~
.! ~ h. - ? _
l"r> ::;_ • --
~- ~--
l
~'ii {,;
1t~ rd
, :>c.i 1H
)c •r.
11
h,
'x"l!n
l, D!i:..:,c;:o:m=-,=
0 :i:b:------'-----A=FA~R:-.~S~ff=--
..
-
--
~ ·
-- - -

l/l L?lLP
ll?
J
ni
p.
fr
Exce
_ l Professional
Services,
Inc.
Management
Firm of Professional
Review and Training
Center (PRTC)
(LUZON) Manila 73393
44 .,, San ti ago City,I
sa bela(0918)2B071 30
Ca l amba
City ,
Lagun a
-t
Da smariiias
City ,
Cavite • Lipa , Batangas [phone]
(VISA Y
AS) Bacolod Ci t- , (034 )
4346214 • Cebu C it y (032)
2537900 lo c. 218
(MINDANAO) Cagayan De
Oro City [phone]
"' Davao City (082)
2250049
Sin ce 1977
AFAR
Final Preboard.
SET B
CPA
REVIEW
M
DE LEON
MAY
2019
The following
data are from
the records of ABC
Partnership,
ABC Partnership
Ba lance Sheet
December 31, ·2018
Assets
Cash
Oths!r
noncash
assets
Liabilities & Net Worth
P 2,000
Liabilities
P 5,000
28,000 A, Loan
2,500
Total
A, Capital
. B,
Capital
C, Capital
~.Q.Q.Q.Q Total
12, 500
7,000
3.000
eJ.Q,.00.0
The partnership liquidates on January 1, 2019. The
other
noncash assets were realized as follows:
Date
Cash Received
Book Value
Jan., 2018 P
6,000 P 9,000 - ~•
" "'
Feb., 2018
· 3,500
7,700 1
1
,,
~
Mar., 2018
12,5 00 11,
300-
-
.
Cash is distributed
as assets are realized. The partners
share profits and losses
~.
1.
Cash receiyed by A in January is
a.
P3,00o c. P 500
b. Pl,000
d.
P 0
The following information pertains
to quest ions 32 through
34 inclusively.
PILIPINAS
ENTERPRISES , whose functional currency is
the
Philippine peso, has a single wholly-owned subsidiary in
Duterteland, whose local curr!!ncy is Rod. The subsidiary,
DU30 Company, was acquired
on January 1, 2019. DU30
submitted its financial
statements for 2019 to PILIPINAS.
Selected exchange rates
in effect throughout
2019 are
shown below:
January 1, 2019
December 31, 2019
Average for
2019
Date of purchase
of inventory on
hand
Rl
Rl
Rl
Rl
P0.8150
P0.81
75 - ,
P0 .8250 --
P0.8300
Date dividends were declared and
PPE
was pur chased
Rl
P0.8125
DU30 financial results
for 2C19 were
as follows:
. INCOME
STATEMENT RETAINED
EARNING
(IN Rods)
S TATEMENT
(IN Rods)
Sales RS
,000,000 January 1,
Gast of sales
Depreciation
expense
Bond Interest
expense
3,500,000
150,000
2019
Net income
Dividends
Other ex pen se
Net income
100,000
750,000
R 500,000 Dec . 31,
2019
STATEMENT OF FINANCIAL
POISIT. IO N
Cash
Rl,200,000 Current
' ltabllities
Accounts
receivable
Inventory
Plant
Bonds
1,900,000
payable
700,000
Share capital
Retained .