Reference no: EM133036379

Questions -

Q1. Moose, Booze and Goose are partners with capital balances of P 320,000, P 450,000 and P 520,000 respectively with profit and loss sharing ratio of 2:3:5 respectively. The firm owes Booze P 20,000. Upon liquidation, P 390,000 is available for distribution to the partners. What amount of cash will Moose receive?

Q2. Partners John and Paul divide profits and losses 6:4 with capital balances of P 540,000 and P670,000 respectively. They agreed to admit Peter by his purchase of one-fourth of John's interest for P300,000. They agreed to write off Accounts Receivable worth P 10,600. Fixed assets were under-depreciated by P 30,000. Payments of accounts payable in the amount of P 8,600 was not posted to the payable account. What amount shall be debited to John's interest?

Q3. The partners of Triple A Partnership are Adah, Ana and Ara. During the current year, their average capital balances are as follows: Adah - P 180,000; Ana - P160,000; Ara - P 150,000. The articles of partnership provided the following terms: 1. Annual interest of 8% on their average capital balances. 2. Salary allowances as follows: Adah - P 50,000 and Ana - P 80,000. 3. Ana shall receive bonus of 15% of income in excess of P40,000 after partner's interest and salary allowances. 4. Residual profits shall be divided in the ratio of 2:2:6 to Adah, Ana and Ara. What amount will Ana receive if the net income earned is P 470,000?

Q4. Moira admits Joni as a partner in the business. Balance sheet accounts of Moira just before the admission of July shows: Cash, P43,000, Accounts Receivable, P150,000, Merchandise Inventory, P170,000, and Accounts Payable, P52,000. It was agreed that for purposes of establishing Moira's interest, the following adjustments should be made: 1) an allowance for doubtful accounts of 3% of accounts receivable is to be established; 2) merchandise inventory is to be increased by P25,000; and 3) prepaid expenses of P7,600 and accrued liabilities of P4,800 are to be recognized. If Joni is to invest sufficient cash to obtain 2/5 interest in the partnership, what amount should she contribute to the new business?

Q5. John and Paul are partners who share profits and losses in the ratio of 3:2 respectively. John's salary is P180,000 and Paul's is P140,000. The partners are paid interest on their average capital balances where John received interest of P 30,000 and Paul, P 15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If John received P280,000 from partnership income, what was the total partnership income?