Partnership Dissolution
ADMISSION
Problem 1. Rivera and Molina are partners with profit and loss ratio of 75:25 and capital
balances of P175,000 and P87,500 respectively. Gutierrez is to be admitted into the
partnership by purchasing a 20% interest in the capital, profits and losses for P105,000.
Assuming that no asset revaluation is to be made, the capital balances of Rivera and Molina,
respectively, after admission of Gutierrez are:
a. P140,000 and P70,000 c. P196,000 and P66,500
b. P210,000 and P105,000 d. P175,000 and P87,500
Assuming that equipment of the partnership is undervalued, the capital balances of Rivera,
Molina and Gutierrez, respectively, after the admission are:
a. P175,000; P87,500; P105,000 c. P140,000; P70,000; P52,500
b. P336,875; P135,625; P52,500 d. P297,500; P122,500; P105,000
Problem 2. Santiago, Aldaba and Tuazon are partners with capital balances of P392,000,
P1,365,000 and P595,000 respectively, sharing profits and losses in the ratio of 3:2:1. Diaz is
admitted as a new partner bringing with him expertise and is to invest cash for a 25%
interest in the partnership which includes a credit of P367,500 for bonus upon his admission.
How much cash should Diaz contribute?
a. P661,500 b. P294,000 c. P787,500 d. P1,050,000
Problem 3. Ponce; Salazar and Moran are partners sharing profits and losses of 5:3:2,
respectively. As of Dec 31, 2010, their capital balances were P498,750; P420,000; and
P315,000 respectively. On January 1, 2011, the partners admitted Adriano as a new partner
and according to their agreement Adriano will contribute P420,000 in cash to the partnership
and also pay P52,500 for 15% of Salazar’s share. Adriano will be given a 20% share in
profits, while the original partners’ share will be proportionately the same as before. After
admission of Adriano, the total capital will be P1,732,500 and Adriano’s capital will be
P367,500. The amount of asset revaluation is:
a. P78,750 b. 36,750 c. P115,500 d. P194,250
The amount of bonus in the admission of Adriano would be:
a. P115,500 b. 57,750 c. P63,000 d. P34,650
Problem 4: Lopez, Endaya and Gonzaga are partners with capital balances of P336,000,
P540,000 and P190,000 respectively, sharing profits and losses in the ratio of 2:5:1. Sevilla
is admitted as a new partner bringing with him expertise and is to invest cash for a 15%
interest in the partnership considering the transfer of capital from him of P90,000 upon his
admission.
Upon admission of Sevilla, which of the following statements is wrong?
A. The capital balance of Endaya amount to P596,250
B. Cash will be debited in the amount of P204,000
C. The capital account of Gonzaga will be credited in the amount of P11,250
D. The total agreed capital of the old partners is P90,000 greater than there contributed
capital
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, Self-Test
Problem 5: Pineda, Bernardo and Tolentino were partners with capital balances on January
2, 2011 of P175,000; P262,500 and P350,000, respectively. Their profit ratio is 5:3:2 while
their capital interest ratio is 4:4:2. On July 1, 2011, Jose was admitted by the partnership for
20% interest in capital and 25% in profits by contributing P43,750 cash, and the old partners
agree to bring their interest to their old capital and profit interest sharing ratio. The
partnership had net income of P105,000 before admission of Jose and the partners agree to
revalue its overvalued equipment by P17,500. The capital balance of Pineda after admission
of Jose is:
a. P148,750 b. P294,000 c. P177,100 d. P235,200
RETIREMENT
Problem 1. Hizon, Nocum and Romero share profits in the ratio of 2:3:5. On January 20,
Romero opted to retire from the partnership. The capital balances on this date follow:
Hizon P43,750
Nocum P70,000
Romero P61,250
How much will be the capital of Nocum, assuming Romero sold his interest to Nocum for
P17,500:
a. P87,500 b. P43,750 c. P131,250 d. P70,000
How much is to be debited from Hizon, assuming Romero is paid P68,250 in full settlement
of his interest?
a. P4,200 b. P5,250 c. P7,000 d. P2,800
Problem 2. On December 30, 2011, the statement of financial position of Delighted Co.
has the following balances: Total assets P1,125,000; Villamin loan P62,500; Villamin capital
P259,375; Mendoza capital P240,625 and Leano capital P562,500. The partners share profits
and losses in the ratio of 25% to Villamin, 25% to Mendoza, and 50% to Leano. It was
agreed among the partners that Villamin retires from the partnership and the partnership
assets be adjusted to their fair value of P1,275,000 as of December 31, 2011. The
partnership also suffered net loss of P375,000. The partnership would pay Villamin P271,250
cash for his total interest in the partnership.
What is the total capital of Mendoza after retirement of Villamin assuming the use of bonus
method?
a. P182,500 b. 191,875 c. P184,375 d. P190,000
Problem 3. The total of the partners’ capital accounts were P192,500 before the recognition
of partnership asset revaluation in preparation for the withdrawal of a partner whose profit
or loss sharing is 20%. He was paid P49,000 by the firm in final settlement for his interest.
The remaining partners’ capital accounts, excluding their share of the asset revaluation,
totaled P157,500 after his withdrawal. The total asset revaluation of the firm agreed upon
was:
a. P70,000 b. P35,000 c. P49,000 d. P14,000
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ADMISSION
Problem 1. Rivera and Molina are partners with profit and loss ratio of 75:25 and capital
balances of P175,000 and P87,500 respectively. Gutierrez is to be admitted into the
partnership by purchasing a 20% interest in the capital, profits and losses for P105,000.
Assuming that no asset revaluation is to be made, the capital balances of Rivera and Molina,
respectively, after admission of Gutierrez are:
a. P140,000 and P70,000 c. P196,000 and P66,500
b. P210,000 and P105,000 d. P175,000 and P87,500
Assuming that equipment of the partnership is undervalued, the capital balances of Rivera,
Molina and Gutierrez, respectively, after the admission are:
a. P175,000; P87,500; P105,000 c. P140,000; P70,000; P52,500
b. P336,875; P135,625; P52,500 d. P297,500; P122,500; P105,000
Problem 2. Santiago, Aldaba and Tuazon are partners with capital balances of P392,000,
P1,365,000 and P595,000 respectively, sharing profits and losses in the ratio of 3:2:1. Diaz is
admitted as a new partner bringing with him expertise and is to invest cash for a 25%
interest in the partnership which includes a credit of P367,500 for bonus upon his admission.
How much cash should Diaz contribute?
a. P661,500 b. P294,000 c. P787,500 d. P1,050,000
Problem 3. Ponce; Salazar and Moran are partners sharing profits and losses of 5:3:2,
respectively. As of Dec 31, 2010, their capital balances were P498,750; P420,000; and
P315,000 respectively. On January 1, 2011, the partners admitted Adriano as a new partner
and according to their agreement Adriano will contribute P420,000 in cash to the partnership
and also pay P52,500 for 15% of Salazar’s share. Adriano will be given a 20% share in
profits, while the original partners’ share will be proportionately the same as before. After
admission of Adriano, the total capital will be P1,732,500 and Adriano’s capital will be
P367,500. The amount of asset revaluation is:
a. P78,750 b. 36,750 c. P115,500 d. P194,250
The amount of bonus in the admission of Adriano would be:
a. P115,500 b. 57,750 c. P63,000 d. P34,650
Problem 4: Lopez, Endaya and Gonzaga are partners with capital balances of P336,000,
P540,000 and P190,000 respectively, sharing profits and losses in the ratio of 2:5:1. Sevilla
is admitted as a new partner bringing with him expertise and is to invest cash for a 15%
interest in the partnership considering the transfer of capital from him of P90,000 upon his
admission.
Upon admission of Sevilla, which of the following statements is wrong?
A. The capital balance of Endaya amount to P596,250
B. Cash will be debited in the amount of P204,000
C. The capital account of Gonzaga will be credited in the amount of P11,250
D. The total agreed capital of the old partners is P90,000 greater than there contributed
capital
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, Self-Test
Problem 5: Pineda, Bernardo and Tolentino were partners with capital balances on January
2, 2011 of P175,000; P262,500 and P350,000, respectively. Their profit ratio is 5:3:2 while
their capital interest ratio is 4:4:2. On July 1, 2011, Jose was admitted by the partnership for
20% interest in capital and 25% in profits by contributing P43,750 cash, and the old partners
agree to bring their interest to their old capital and profit interest sharing ratio. The
partnership had net income of P105,000 before admission of Jose and the partners agree to
revalue its overvalued equipment by P17,500. The capital balance of Pineda after admission
of Jose is:
a. P148,750 b. P294,000 c. P177,100 d. P235,200
RETIREMENT
Problem 1. Hizon, Nocum and Romero share profits in the ratio of 2:3:5. On January 20,
Romero opted to retire from the partnership. The capital balances on this date follow:
Hizon P43,750
Nocum P70,000
Romero P61,250
How much will be the capital of Nocum, assuming Romero sold his interest to Nocum for
P17,500:
a. P87,500 b. P43,750 c. P131,250 d. P70,000
How much is to be debited from Hizon, assuming Romero is paid P68,250 in full settlement
of his interest?
a. P4,200 b. P5,250 c. P7,000 d. P2,800
Problem 2. On December 30, 2011, the statement of financial position of Delighted Co.
has the following balances: Total assets P1,125,000; Villamin loan P62,500; Villamin capital
P259,375; Mendoza capital P240,625 and Leano capital P562,500. The partners share profits
and losses in the ratio of 25% to Villamin, 25% to Mendoza, and 50% to Leano. It was
agreed among the partners that Villamin retires from the partnership and the partnership
assets be adjusted to their fair value of P1,275,000 as of December 31, 2011. The
partnership also suffered net loss of P375,000. The partnership would pay Villamin P271,250
cash for his total interest in the partnership.
What is the total capital of Mendoza after retirement of Villamin assuming the use of bonus
method?
a. P182,500 b. 191,875 c. P184,375 d. P190,000
Problem 3. The total of the partners’ capital accounts were P192,500 before the recognition
of partnership asset revaluation in preparation for the withdrawal of a partner whose profit
or loss sharing is 20%. He was paid P49,000 by the firm in final settlement for his interest.
The remaining partners’ capital accounts, excluding their share of the asset revaluation,
totaled P157,500 after his withdrawal. The total asset revaluation of the firm agreed upon
was:
a. P70,000 b. P35,000 c. P49,000 d. P14,000
This study source was downloaded by 100000844460766 from CourseHero.com on 04-26-2022 02:15:46 GMT -05:00
https://www.coursehero.com/file/47934416/dissolution-liquidationdoc/
