Dissolution

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__ _ _ _-bal ce sheet - is prese~ted f o ~

Problem _- 41: The follo~g condensed fit an_ d losses in the _ratio of 6:4
partners~ip of A and B, who share pro 1 s an '
. respectively: 135,000 Acc0unts payable 360,000
Cash A, capital 1,044,000
Non-cash assets · -1,875,000 ~, ·c apital 696,000 -
B; loan 90,000 2,100,000
2,100,000
- -_ - · _. _al d A and 13 decided to ~dmit C as a new
All assets and liabilities are fairly v ue ' aluation is recorded. What amount
partner ·with __2_0% in~erest. /i:~?boQu_s or rev • - . - -
should~ contributes m the . c. 420,000 .- . - ,
a. 330,000 . d 435 000
b. 348,000 . - '
P
- roblem · 42: The following capital accounts p~rtain to A B:
- - - - ·· - Capital - P&L ratio
A 200,000 40%
B - 240,000 -_ 60% _ _
c -is .admitted ·by -purchase of ½ interest ~f J:?oth A and B, for P240,000, the
P240 1000 is_divided between A arid B, respectively:
- 9 6 000· 144 000 - C. 109,090; 130,910
- -·108,000; 132,000 - , d. 120,000; 120,000 -
r -
Problem 43~The balance sheet of th~ p~riership on Jarjuary

1, 202'.0 is .
presented-below:
Cash c, _-
600,000 Due to B -120:000
Non-Cash Assets 2,500,000 Due to C " 250-,000
Due from A 220,000 ' Liabilities 100,000
A, .c apital (25%) 750,000
B? c~pital (35%) _ 900,000_
- - - - ~ C, capital (40%) _ 1,200,000
Total - _ 3,320,000 Total· 3,320,000
On August 1, 2020, ABC ,P~~rship · ·admitted D .as anew paI'tJ!er jn the
partnership by purchasing 20%,inferest, with a profit and loss share of 15% and
paid PSSO;OO(>:. The,·net income-of the partner.ship prior to admission amounted to _
P200,000._How much is th~ ·c apital interest'ofA after admission? ·
a. P600,000 - _c: P640,,000_-
b. -P464,000 -~ - d. P776,000
/ -
· What is the amount received by partner C from-the PSS0,000 paid by new partner
D? . - , - - - - - -- -
a '. P270,000 c. P232,000
b. P220,000 d. Pl 73,000
Assuming the p~ers a~ee t? revalue its equipment before ~dmitting new .
partner D, what is th e capital interest of partner B after admission of new partner
D? -
a. · P748,000 c. _P746,000
b. P692,000 d. P802,000
Problem 44: A and B are partners who shares profit and loss in the ratio of 3 :2,
respectively with the capital balances c;>f:
250,000
300,000
I
C was admitted into the partnership for 20% interest in capital and 25% interest in
. profit or loss of ~e partnersh!J>. The capital of A after admission of new partner C
amounted to P250,000. The net income before admission amounted to P50,000.
Req. 1-: What is the amount of cash investment of partner C?

a. P150,000 c. P137,500
b. P133,333 d. P87 ,500
Req. ~: Using the same data but new partner·c invested cash amounting to
- P120,000, what is the amount of bonus giveh by partner B? .
a. P24,000.. · ·c. P30,000 ·
b. P9,600 d. P7 ,000
Problem 45: The balance of ABC partnership on January 1, 2020 is presented

below: · :·
Cash 300,000 Due to A 20,000
Non-Cash Assets 1,200,000 Due to C 30,_0 00
Due from B . 100,000 Liabilities 100,000
A, capital (50%) 620,000
B, capital (30%) 500~000
C, ~apital
l .
(20%)•
. 330,000
Total 1,600,000 Total . 1,600,000
- .
'fh;e net income of the partnership in _year.2020 amounted to.P2S0,000. October 1,
2020, the partners agreed to admit _D as a new partner in the firm for 25% interest
. iµ capital and 20% in profit or loss for a contribution of ~412,500. What is the -
capital interest of partner B on December 3_l, 2020?
a. P540,312.50 · - - · c. P54:1,250.00
b . . P444,062.50 . .d. P445,000.0Q ..-
~blem 46: When admitting ·a new parine~ into an exispng_ partnership, any
allocation of r~valuation of assets to the old partner.ls based on
a. The profit and loss ratio · · ' .
b. An equal distribution ·among pa.rtpers ·
-c. The fair values of the assets each partner has contributed. to the business
_d. · The relative capital balances of the partners .
~blem 47: When a partner- retires from .the partne~ship and the . settle . of his
lllterest exceeded his capital interest. Us~g bonus method, the ex~ess shall
. a. Recorded as expense_ . res; of the remaining partners
b. Had no-effect in ~e capital int; the remaining partners
c. Decrease the ca~ital balance the remaining _partners.
d. Increase the capital balance 0
art is admitted by his direct investment in th
Problem 48: -~en a n_~ tpd c~;ftal,is less than his agreed capital, there is a e
business and if his contn u e c No bonus to all partners
a. Bonus to old partner's d. All of the above
b. Bonus to new partner ·
Problem 49 : The following condition will result to partnership dissolution, except:
a. Admission of a new partner
b. Death or incapacity .of a partner f ,t·
· c. Sharing in the loss of ordi~ary sale o asse s
d. Retirement of any partner ·
Problem 50: A retiring partner. withdraws his interest at book v~ue receives
assets:
a. Above his capital interest c. Equal to his capital interest
b. Below his capital interest d. None of the choices .
Problem 51: A retire from the firni, .the final settlement of his interest exceeds his
capital balance, under bonus me_thod, .the excess: · · ... •,,_ · ·
a . . Had no ~ffect in_the capital balances· of the remaining partners
· b. Was recorded as an expense _ - _ - .
C. R~quced:the capital of the remaining partners .
d. Increase the capital of the remaining partners
. . .
._Problem. 52: The following ·transactions will affect the balance of the total
partnership.capital except:
a. Permanent-withdrawals of the partners
b. _Partnership net loss · .
c. . Re~f~ent of a partner by settlement mort to his interest.
d. -Adnussion of new partn«?r by purchase. - .
Proble~ 53: -~e bonus toold partners is allocated .usiri

~: ,_ Capital ratio of the r<:maining partners _. g
Profit and loss ratio of the remaining ·part
c. Capital contribution . ners
d. None of the above
.Problem 54: Up.o n dissolution th · - · ·

liabilities _. of the partnership . Thee ki~e~s -may a~ee to adjust the assets
capital account using _ · e ec such adJ1:1stment will be charge
:iod
a. Beginning capital balances

b. Ending capital balances c. Profit and loss ratio
d. ~verage capital ratio
PrOblem 55: The withdrawal of a partner of his interest at less than book value
. results_~ a - · ·
a. Bonus f:com remaining partners c. Loss to remaining partners
b. Bonus to remaining partners d. Gain to remaining partners
Problem 56: Which of the following.will not dissolve the partnership?

a. . Admission of new partner
b. Assignment of_partners' interest .
c. Investment of a new partner in the partnership
d. Insanity of a partner )
Problem 57: Which of the ·following procedures is not necessary steps affecting a ·
dissolution of partnership? ·
a. . Revaluing partnership assets .
b. Recognizing undistributed profit or loss share of partner at dissolution date
c. _C losing of partnership books
d. Revising partners' equity
. ,·
Problem 58: One -of .the partners decided to buy the interest of other partner,
which of the following is incorrect?
·a. Total partnership assets will remain the ·same
b. There.is no need to revise .the.partnership equity
c. . The partners _equity will not change
d. . Partnership profit & loss ratio will change
· Problem 59: Admission by investment using bonus methoq. is recorded by

. a. Debiting the bonus account i:h the partnership books
b. · b Crediting the bonus account in the partnership books
c. · Debiting the capital account of the new partner·if he receives the bonus. .
d. Crediting the capital account of the old partners if the new partner transfer his
· interest. · · ·
Problem 60: The follo~ing statem~nts are correct, except .

a. Admission of ne_w 'partner by purchase has no effect in total capital. of the firm
b. Admission of new partner by investment. increases the: total capital of the firm
c. Admission of new partner by investment using revaluation method affects the
new.partner capital · · · ·· ·· · · ·
d. Assignment of.interest does Qot dissolve the business.

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__ _ _ _-bal ce sheet - is prese~ted f o ~

Problem 43~The balance sheet of th~ p~riership on Jarjuary

Req. 1-: What is the amount of cash investment of partner C?

Problem 45: The balance of ABC partnership on January 1, 2020 is presented

Proble~ 53: -~e bonus toold partners is allocated .usiri

.Problem 54: Up.o n dissolution th · - · ·

a. Beginning capital balances

Problem 56: Which of the following.will not dissolve the partnership?

· Problem 59: Admission by investment using bonus methoq. is recorded by

Problem 60: The follo~ing statem~nts are correct, except .

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