Reference no: EM133051610

Questions -

Q1. On January 5, 2021, Alma, Brenda and Cathy formed a partnership with these initial investments: Alma - cash of P75,000; Brenda - furniture and fixtures with original cost of P100,000, book value of P70,000 and fair value of P 80,000; Cathy - equipment with cost of P180,000, carrying value of P90,000 and sound value of P125,000. The partnership accepted responsibility for P40,000 mortgage attached to the property contributed by Cathy. The partnership agreement specifies that profits and losses are to be shared equally but is silent regarding capital contributions. How much is the total net assets immediately after partnership formation?

A) P280,000

B) P240,000

C) P235,000

D) P195,000

Q2. On January 3, 2021, Marie and Marko formed MARIMAR Partnership with the following profit and loss agreement: Marko to receive a bonus of 10% of profit after bonus and after which the profit shall be divided 5:7 to Marko and Marie respectively. If the partnership has profits of P275,000 before bonus during 2021, how much will be the share of Marko?

A) P145,833

B) P130,625

C) P129,167

D) None of the above

Q3. Assume that Swann Company uses a periodic inventory system and has these account balances: Purchases P630,000; Purchase Returns and Allowances P25,000; Purchase Discounts P11,000; and Freight-In P19,000; beginning inventory of P45,000; ending inventory of P55,000; and net sales of P750,000. Determine the Gross Profit.