FOR ITEMS NO. 1-8: Kobe and Black Are Partners in A Business Selling

PARTNERSHIP AND CORPORATION 9-10.
If it is Ariba who is willing to sell her capital to Ababo, how

CHAPTER 4 – PARTNERSHIP: CHANGES IN PARTNERS’ EQUITY - much will be the capital for the new partner?
DISSOLUTION
a. P186,400 c. P190,640
Name: b. P279.760 d. Neither a, b nor c
Yr. & Sec.:
Date: 11-12. In the new capital ratio of the partnership after admitting
Ababo, what is the interest % that Arabo holds?
Multiple choice: Choose the best answer.
a. 59% c. 35%
FOR ITEMS NO. 1-8: Kobe and Black are partners in a business selling b. 40% d. 65%
sports wear and equipment which they organized in 2016. Profits
are shared in the ratio of 1:1 respectively. Their capital balances as 13-14. If it is Arabo who is willing to sell her capital to Ababo, how
of December 31, 2018 were P240,000 and P260,000 respectively. much will be the total capital of the partnership after Ababo paid
Drawing accounts are always closed yearly to the capital accounts. P200,000 for his purchase?
They agreed to admit Mamba upon payment of P150,000 for a 45% a. P1,185,360 c. P1,385,360
interest from Kobe on July 1, 2019. Before admission they agreed to b. P1,176,000 d. Neither a, b nor c
update their capital accounts for the following:
15-16. All of the following scenarios tends to be a reason for a
1.) Net income of P275,000 for the first half of 2019. partnership to be dissolve, which one is not?
2.) Monthly salary drawings of P10,000 and P20,000 were made by
Kobe and Black a. Aye, one of the partners in ABC Ltd. was struct by lightning, still
3.) Revalue equipment acquired at a cost of P200,000, book value of alive, realize that he needs to rest, so he sell his whole capital to
P180,000 and a fair market value equal to 75% of its cost. Dee.
b. After losing in gambling, Pawn, of Chess Partnership withdraw his
1-2. Upon the execution of the partners agreement, the agreed entire capital.
capital credited to Mamba is? c. Bombet of Bombay Corp. died due to helicopter crashed incident
a. P150,000 c. P136,125 along with Bryant.
b. P145,000 d. Neither a, b nor c d. Neither a, b nor c
3-4. Upon the execution of the partners agreement, the agreed 17-18. In admission of a new partner by purchase of interest from an
capital credited to Black is? existing partner, what causes increased in partnership’s equity?
a. P150,000 c. P136,125 a. When the incoming partner pays more than the capital amount
b. P145,000 d. Neither a, b nor c that he/she will receive.
b. When the old partner transfer capital less than the capital amount
5-6. After transferring a portion of his capital to Mamba, how much paid by the incoming partner.
capital retains to Kobe? c. Asset Revaluation
d. Neither a, b nor c
a. P152,500 c. P126,375
b. P166,375 d. P262,500 FOR ITEMS NO. 19-24: HELLO and LOVE’s capital is P600,000 and
P480,000 respectively. Profit or loss share ratio is 7:3. GOODBYE
7-8. As the partners execute the agreement, what is the new capital directly purchased a 1/3 interest by paying HELLO P195,000 and
ratio of the partnership? LOVE P225,000. The land was increased by P180,000 before
a. 27.5%, 27.5%, 45% for Kobe, Black, Mamba respectively accepting GOODBYE.
b. 29%, 46%, 24% for Kobe, Black, Mamba respectively 19-20. How much is the capital of HELLO after the admission of
c. 25%, 50%, 25% for Kobe, Black, Mamba respectively GOODBYE?
d. Neither a, b nor c
a. P300,000 c. P420,000
FOR ITEMS NO. 9-14: Ariba and Arabo have capital balances of b. P356,000 d. P484,000
P450,000 and P650,000 as of December 31, 2019. Ariba and Arabo
share 35% and 65% in profit or losses. The partners believe that the 21-22. How much is the capital of LOVE after the admission of
following assets should be adjusted: GOODBYE?
Book Value Market Value a. P300,000 c. P420,000

Accounts Receivable P102,000 P120,000 b. P356,000 d. P484,000
Inventory 200,000 258,000
23-24. How much is the capital of GOODBYE after being admitted to
Ababo is interested in buying a 40% interest from anyone of the the partnership?
partners.
a. P300,000 c. P420,000
b. P356,000 d. P484,000
1 PARCOR QUIZ 1: SET D

FOR ITEMS NO. 25-30: LUCIO, JOHN and HENRY are partners sharing 31-32. How much will be the capital balance of Chin after
profit or losses for 40%, 40% and 20% respectively. The December interpreting the agreement of the partners?
31, 2019 financial position of the partnership before any profit
allocation was summarized as follows: a. P118,000 c. P72,000
b. P60,000 d. Neither a, b nor c
ASSETS LIABILITIES & CAPITAL
Cash P90,000 Accounts Payable P7,500 33-34. How much will be the capital balance of Chan after
Inventories 60,000 Loan Payable to JOHN 5,000 interpreting the agreement of the partners?
Equipment 75,000 LUCIO, Capital 100,000
Trademark 22,500 HENRY, Capital 90,000 a. P62,0000 c. P72,000
JOHN, Capital 45,000 b. P60,000 d. P118,000
Total Assets P247,500 Total Liab. & Cap. P247,500 35-37. How much will be the capital balance of Tzu after interpreting
The Income/Expense Summary Account has a credit balance of the agreement of the partners?
P25,000 for the year 2019. On January 1, 2020, a partner has a. P62,0000 c. P72,000
decided to retire from the partnership and by mutual agreement b. P60,000 d. Neither a, b nor c
among partners, the following are the adjustments to be made:
38-40. What is the new capital ratio/percentages of the partners?
 Inventories amounting to P10,000 is considered obsolete
and must be written off. a. 42%, 33%, 25% for Chin, Chan and Tzu respectively.
 Equipment should be adjusted to their fair value of b. 33%, 35%, 32% for Chin, Chan and Tzu respectively.
P50,000 c. 35%, 20%, 45% for Chin, Chan and Tzu respectively.
 Trademarks are to be written-off immediately before the d. 45%, 30%, 25% for Chin, Chan and Tzu respectively.
retirement.
+++ NOTHING FOLLOWS +++
It was agreed that the partnership will pay the retiring partner for
his interest in the partnership (inclusive of drawing and loan account
if there’s any).
25-26. If JOHN retired and received P38,500 as retirement or

settlement amount, how much will be the bonus to or (from)
HENRY?
a. (P1,000) c. P500
b. P1,000 d. (P500)
27-28. If JOHN retired and received P38,500 as retirement or

settlement amount, how much will be the agreed capital of LUCIO
under Bonus Method?
a. P100,000 c. P86,000
b. P87,000 d. P76,000
29-30. If JOHN retired and received P43,500, how much will be the
adjusted capital of LUCIO under asset revaluation?
a. P77,000 c. P87,250
b. P86,250 d. P93,500
FOR ITEMS NO. 31-40: Chin and Chan are partners of ChinChan
Partnership having these respective capital balances: P60,000 and
P40,000. The partners agreed to apportion whatever to be divided
using their capital balances. Tzu wants to be admitted as the new
partner through investing P80,000 to have the 25% in the
partnership’s equity.
They agreed that the total equity of the partnership after admitting
Tzu is P240,000.
2 PARCOR QUIZ 1: SET D

FOR ITEMS NO. 1-8: Kobe and Black Are Partners in A Business Selling

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PARTNERSHIP AND CORPORATION 9-10.

If it is Ariba who is willing to sell her capital to Ababo, how

Book Value Market Value a. P300,000 c. P420,000

1 PARCOR QUIZ 1: SET D

25-26. If JOHN retired and received P38,500 as retirement or

27-28. If JOHN retired and received P38,500 as retirement or

2 PARCOR QUIZ 1: SET D

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