Title | Accounting for Partnership and Corporation SOLMAN (Baysa & Lupisan, 2014) Chapter 4 |
---|---|
Author | Thyone Savva |
Course | Bachelor of Science in Accountancy |
Institution | Polytechnic University of the Philippines |
Pages | 12 |
File Size | 214.2 KB |
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parcor CHAPTER 4 Partnership Dissolution EXERCISES Exercise 1. Camus, Capital x Cuenco, Capital x Cerda, Capital 2. 3. 4. 5. Other Assets Camus, Capital x Cuenco, Capital x Camus, Capital x Cuenco, Capital x Cerda, Capital Cash Cerda, Capital Camus, Capital x Cuenco, Capital x Cash Other Assets Camu...
parcor CHAPTER 4 Partnership Dissolution EXERCISES Exercise 4-1 1. Camus, Capital (90,000 x 1/3) Cuenco, Capital (60,000 x 1/3) Cerda, Capital 2.
3.
4.
5.
30,000 20,000 50,000
Other Assets Camus, Capital (P120,000 x 75%) Cuenco, Capital (P120,000 x 25%)
120,000 90,000 30,000
Camus, Capital [(P90,000 + P90,000) x 1/3] Cuenco, Capital [(P60,000 + P30,000) x 1/3] Cerda, Capital
60,000 30,000
Cash Cerda, Capital Camus, Capital (P30,000 x 75%) Cuenco, Capital (P30,000 x 25%)
90,000
Cash Other Assets Camus, Capital (P120,000 x 75%) Cuenco, Capital (P120,000 x 25%) Cerda, Capital AC Old P270,000 New 90,000 P360,000
90,000
60,000 22,500 7,500 90,000 120,000 90,000 30,000 90,000 CC P150,000 90,000 P240,000
Asset Rev P120,000 -----P120,000
Cash Camus, Capital (P30,000 x 75%) Cuenco, Capital (P30,000 x 25%) Cerda, Capital
90,000 22,500 7,500 120,000
Exercise 4-2 1. Cular, Capital Canda, Capital
20,000
2.
Other Assets Capco, Capital Cular, Capatil Cruz, Capital P70,000 ¼ = P280,000 – (P100,000 + P80,000 + P60,000) = P40,000
40,000
Capco, Capital (P100,000 + P25,000) x ¼ = P31,250 Cular, Capatil (P80,000 + P10,000) x ¼ = P22,500 Cruz, Capital (P60,000 + P5,000) x ¼ = P16,250 Canda, Capital
31,250 22,500 16,250
20,000
25,000 10,000 5,000
70,000
Chapter 4 - Partnership Dissolution Suggested Answers
3.
Cash Canda, Capital Capco, Capital (P26,250 x 5/8 = P16,406.25) Cular, Capatil ( P26,250 x 2/8 = P6,562.50) Cruz, Capital (P26,250 x 1/8 = P3,281.25) AC CC Old P266,250 P240,000 New 88,750 115,000 P355,000 P355,000 Exercise 4-3 1. Catral, Capital Conti, Capital P480,000 x 1/3 = P16 0,000 2.
3.
115,000 88,750.00 16,406.25 6,562.50 3,281.25 Bonus P26,250 (26,250) P -----160,000 160,000
Clemente, Capital Conti, Capital P360,000 x 1/3 = P12 0,000
120,000
Other Assets Catral, Capital Clemente, Capital P252,000 1/4 = P1,008,000 – P840,000 = P168,000 P168,000 x 2/6 = P56,000; P168,000 x 4/6 = P112,000
168,000
Catral, Capital Clemente, Capital Conti, Capital (P480,000 + P56,000) x 1/4 = P134,000 (P360,000 + P112,000 ) x 1/4 = P118,000
134,000 118,000
120,000
56,000 112,000
252,000
Exercise 4-4 1a. Carlos, Capital (P200,000 x ¼) Cruz, Capital (P300,000 x 1/3) Caparas, Capital
50,000 100,000
1b.
120,000
150,000
Cash Carpio, Capital
2.
120,000
Carlos (P200,000 – 50,000 = P150,000) Cruz (P300,000 – 100,000 = P200,000) Caparas Carpio
150,000 200,000 150,000 120,000
Exercise 4-5 1. Bonus Method Cash Cuenca, Capital (P16,667 / 2) Claudio, Capital (P16,667 / 2) Cabral, Capital Old New 2.
Asset Revaluation Method
AC P483,333 241,667 P725,000
225,000 8,333 8,334 241,667 CC P500,000 225,000 P725,000
Bonus (P16,667) 16,667 -----
Chapter 4 - Partnership Dissolution Suggested Answers
Cash Cuenca, Capital (P50,000 / 2) Claudio, Capital (P50,000 / 2) Other Assets Cabral, Capital Old New
225,000 25,000 25,000 50,000 225,000
AC P450,000 225,000 P675,000
CC P500,000 225,000 P725,000
Asset Rev. (P 50,000) -----(P50,000)
Exercise 4-6 1. Cash Choy, Capital (P21,000 x 2/5) Chua, Capital (P21,000 x 1/5) Cheng, Capital (P21,000 x 2/5) Chiu, Capital Old New
2.
AC P396,000 99,000 P495,000
120,000 8,400 4,200 8,400 99,000 CC P375,000 120,000 P495,000
Bonus P21,000 (21,000) -------
Other Assets Choy, Capital Chua, Capital Cheng, Capital
105,000
Cash Chiu, Capital
120,000
Old New
42,000 21,000 42,000
120,000 AC P480,000 120,000 P600,000
CC P375,000 120,000 P495,000
Asset Rev P105,000 P105,000
Problem 4-1 1. Carmen, Capital Centeno, Capital Corrales, Capital 2.
40,000 20,000 60,000
Other Assets Carmen, Capital Centeno, Capital P120,000 1/3 = P360,000 – P240,000 = P120,000
120,000 90,000 30,000
Carmen, Capital ([P160,000 + P90,000] x 1/3) Centeno, Capital [(P80,000 + P30,000) x 1/3] Corrales, Capital 3.
83,333 36,667 120,000
Other Assets Cash Carmen, Capital Centeno, Capital Corrales, Capital Old
120,000 120,000 90,000 30,000 120,000 AC P360,000
CC P240,000
Asset Rev P 120,000
Chapter 4 - Partnership Dissolution Suggested Answers
New
4.
6.
7.
10.
AC P180,000 180,000 P360,000
120,000 45,000 15,000 180,000 CC P240,000 120,000 P360,000
Bonus P(60,000) 60,000 -------160,000
Cash Corrales, Capital Carmen, Capital Centeno, Capital
160,000
Cash Corrales, Capital Carmen, Capital Centeno, Capital
100,000
120,000 30,000 10,000
140,000 15,000 5,000
85,000 11,250 3,750 AC P255,000 85,000 P340,000
CC P240,000 100,000 P340,000
Bonus P15,000 (15,000) --------
Cash Other Assets Corrales, Capital Carmen, Capital Centeno, Capital Old New
9.
----P 120,000
Cash Corrales, Capital Carmen, Capital Centeno, Capital
Old New
8.
120,000 P360,000
Cash Carmen, Capital (P60,000 x 75%) Centeno, Capital (P60,000 x 25%) Corrales, Capital Old New
5.
120,000 P480,000
110,000 90,000 110,000 67,500 22,500 AC P330,000 110,000 P440,000
CC P240,000 110,000 P350,000
Asset Rev P90,000 -------P90,000
Cash Carmen, Capital (P16,000 x 75%) Centeno, Capital (P16,000 x 25%) Corrales, Capital
96,000 12,000 4,000
Cash Corrales, Capital P240,000 4/5 = P300,000 x 1/5 = P60,000
60,000
Problem 4-2 1. Cash Calma, Capital
112,000
60,000
150,000 150,000
Chapter 4 - Partnership Dissolution Suggested Answers
Old New
2.
AC P300,000 150,000 P450,000
CC P300,000 150,000 P450,000
Cash Calma, Capital Coral, Capital Corpuz, Capital Old (3/4) New (1/4)
3.
120,000 105,000 9,000 6,000 AC P315,000 105,000 P420,000
CC P300,000 120,000 P420,000
Bonus P15,000 (15,000) ------
Cash Coral, Capital Corpuz, Capital Calma, Capital Old New
4.
5.
6.
60,000 18,000 12,000 90,000 AC P270,000 90,000 P360,000
Bonus (P30,000) 30,000 -
Coral, Capital (P180,000 x ¼) Corpuz, Capital (P120,000 x ¼) Calma, Capital
45,000 30,000
Other Assets Coral, Capital Corpuz, Capital
30,000
Coral, Capital [(P180,000 + P18,000) ¼] Corpuz, Capital [(P120,000 + P12,000) ¼] Calma, Capital
49,500 33,000
Cash Other Assets Calma, Capital Coral, Capital Corpuz, Capital
90,000 60,000
Old New
75,000
18,000 12,000
82,500
90,000 36,000 24,000 AC P360,000 90,000 P450,000
Problem 4-3 1. a. Cash Coloma, Capital b.
CC P300,000 60,000 P360,000
Cash Castillo, Capital (P25,000 x 8/10) Cordova, Capital (P25,000 x 2/10) Coloma, Capital
CC P300,000 90,000 P390,000
Asset Rev. P 60,000 -----P 60,000
350,000 350,000 500,000 20,000 5,000 475,000
Chapter 4 - Partnership Dissolution Suggested Answers
AC P1,425,000 475,000 P1,900,000
Old New
c.
d.
e.
Cash Other Assets Castillo, Capital (P700,000 x 8/10) Cordova, Capital (P700,000 x 2/10) Coloma, Capital AC Old P2,100,000 New 700,000 P2,800,000
CC P1,400,000 500,000 P1,900,000
Bonus P25,000 ( 25,000) ----------700,000 700,000 560,000 140,000 700,000
CC P1,400,000 700,000 P2,100,000
Asset Rev P700,000 ----------P700,000
Castillo, Capital Cordova, Capital Coloma, Capital
140,000 210,000
Castillo, Capital Cordova, Capital Coloma, Capital
112,000 168,000
350,000
280,000
Problem 4-4 1. Total capital of old partners Fraction of interest of old partners Total partnership capital after admission of Cruz Interest of Cruz Required contribution of Cruz 2 a.
Bonus method AC P435,000 249,000 36,000 180,000 P900,000
Cortes Canda Cerra Cruz
2b.
P690,000 4/5 P862,500 x 1/5 P172,500
CC P420,000 240,000 30,000 210,000 P900,000
Bonus P15,000 9,000 6,000 ( 30,000) -------
Asset Revaluation method Cortes Canda Cerra Cruz
AC P495,000 285,000 60,000 210,000 P1,050,000
Problem 4-5 1. a. Asset Revaluation method Cash Clara, Capital Cora, Capital
CC P420,000 240,000 30,000 210,000 P900,000
Asset Rev P75,000 45,000 30,000 P 150,000
90,000 22,500 18,000
Chapter 4 - Partnership Dissolution Suggested Answers
Celia, Capital Other Assets Carla, Capital Old New
b.
4,500 45,000 90,000 AC P 630,000 90,000 P720,000
CC P 675,000 90,000 P765,000
Bonus method Cash Clara, Capital (P5,625 x 5/10) Cora, Capital (P5,625 x 4/10) Celia, Capital (P5,625 x 1/10) Carla, Capital AC Old P669,375 New 95,625 P765,000
Asset Rev (P45,000) (P45,000)
90,000 2,813 2,250 562 95,625 CC P675,000 90,000 P765,000
Capital balances – Bonus method Capital balances – Asset Revaluation method Reduction in depreciation due to asset revaluation Capital balances after reduction in depreciation Net advantage (disadvantage) of bonus over asset rev.
Bonus (P5,625) (5,625) ----Clara P321,187 P301,500 11,250 P 312,750 P 8,437
Cora P213,750 P198,000 11,250 P209,250 P4,500
Celia P134,438 P130,500 11,250 P141,750 (P 7,312)
Carla P95,625 P90,000 11,250 P101,250 (P5,625)
Celia will prefer the asset revaluation method over the bonus method because of the P7,312 advantage over the bonus method. 2.
a.
b.
Clara, Capital Cora, Capital Celia, Capital Carla, Capital
40,500 27,000 16,875
Other Assets Clara, Capital Cora, Capital Celia, Capital P90,000 1/8 = P720,000 – P675,000 = P45,000
45,000
Clara, Capital (P324,000 + P22,500) x 1/8 Cora, Capital (P216,000 + P18,000) x 1/8 Celia, Capital (P135,000 + P4,500) x 1/8 Carla, Capital
43,312 29,250 17,438
Problem 4-6 1. Capital balances before the admission of Camo Purchase of 1/6 interest of Cadiz Contribution to the partnership Asset revaluation to old partners
84,375
22,500 18,000 4,500
90,000
Cabal P150,000
6,000
Cadiz P180,000 (30,000)
Caldea P300,000
6,000
8,000
Camo 30,000 150,000
Total P630,000 ----150,000 20,000
Chapter 4 - Partnership Dissolution Suggested Answers
Bonus to old partners Capital balances after the admission of Camo 2.
Cabal Cadiz
6,000 P162,000
= 30% x 75% = 22.5% = 30% x 75% = 22.5%
6,000 P162,000
8,000 P316,000
(20,000) P160,000
-----P800,000
Caldea = 40% x 75% = 30% Camo = 25%
Problem 4-7 Capital balances Dec. 31, 2007 before closing Distribution of 2007 profit: Salaries Balance Share in 2007 profit Total Drawing Capital balances, January 1,2008 Investment of Calixto Bonus to Calixto Capital balances after the admission of Calixto Share in 2008 loss Drawing Capital balances, January 1, 2009 Loss on sale of the partnership business Cash Settlement to partners
Corona P250,000
Calderon P150,000
P45,000 (12,000) P33,000 P283,000 (41,000) P242,000
P45,000 (8,000) P37,000 P187,000 (34,000) P153,000
(39,000) P203,000 (26,250) (37,500) P139,250 (82,600) P56,650
(26,000) P127,000 (18,750) (25,000) P83,250 (59,000) P24,250
Calixto
P100,000 65,000 P165,000 (30,000) (34,000) P101,000 (94,400) P6,600
Total P400,000 P90,000 (20,000) P70,000 P470,000 (75,000) P395,000 100,000 P495,000 (75,000) (96,500) P323,500 (236,000) P87,500
MULTIPLE CHOICE 1. 2. 3. 4.
B C A A
5.
B Capital bal. before admission of Chat Asset Revaluation Balances Interest sold to Chat (25%) Balances after the admission of Chat
Chan P250,000 30,000 P280,000 ( 70,000) P210,000
Ching P150,000 18,000 P168,000 ( 42,000) P126,000
Chen P100,000 12,000 P112,000 ( 28,000) P 84,000
Total P500,000 60,000 P560,000 ( 140,000) P420,000
6.
A
P72,000 x ½
P 36,000
7.
C
Total partnership capital before the admission of Co Fraction of interest of old partners Total partnership capital after the admission of Co Fraction of interest of Co Required contribution of Co
P280,000 4/5 P350,000 x 1/5 P 70,000
8.
A Capital balances before adjustment Uncollectible accounts Worthless inventories
Cordova P641,976 ( 20,000) ( 5,500)
Constancio P728,352 ( 35,000) ( 6,700)
Chapter 4 - Partnership Dissolution Suggested Answers
Other assets written off Adjusted capital
( 2,000) P614,476
( 3,600) P683,052
9.
C
Total capital (P614,476 + P683,052) Total liabilities (P178,940 + P200,000 + P243,650 + P345,000) Total assets
P1,297,528 967,590 P2,265,118
10.
D
Total capital (P1,297,528 / 80%) Interest acquired by Cuyugan Cash to be contributed by Cuyugan
P1,621,910 x 20% P 324,382
11.
D
Cordova P614,476 648,764 P 34,288
Capital balances Required capital (P1,297,528 / 2) Cash paid (received) 12.
B Capital balances Cash paid (received) Net income Drawings Capital balances, end of first year
Cordova P614,476 34,288 130,000 ( 50,000) P728,764 2/6 1/6 1/6
13.
C
Conrado = ½ x 2/3 Cosio = 1/4 x 2/3 Cosme = 1/4 x 2/3
14.
C
Agreed capital Contributed capital (P500,000+P200,000) Asset Revaluation
15.
B
Conrado Capital bal. before the admission of Cueto Transfer of 1/3 interest Investment of Cueto Asset Revaluation Capital bal. after the admission of Cueto
P250,000
Constancio P683,052 648,764 (P 34,288)
Constancio P683,052 ( 34,288) 130,000 ( 65,000) P713,764
Cuyugan P324,382 65,000 ( 28,000) P361,382
P 750,000 700,000 P 50,000 Cosio P150,000 ( 50,000)
Cosme
Cueto
P100,000
25,000
12,500
12,500
P275,000
P112,500
P112,500
Total
P 50,000 200,000
P500,000 -----200,000 50,000
P250,000
P750,000
Chapter 4 - Partnership Dissolution Suggested Answers
Test Material No. 14 1. T 6. F 2. F 7. T 3. T 8. T 4. F 9. F 5. F 10. T
11. 12. 13. 14. 15.
F F F T T
1. 2. 3. 4. 5.
16. 17. 18. 19. 20.
T T F T T
6. 7. 8. 9. 10
TEST MATERIALS Test Material No. 15 Asset Revaluation Agreed capital Bonus Total contributed capital Dissolution Interest Dissolution Sale of interest to a partner Agreed capital Admission by purchase
11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
Admission by investment Bonus to new partner Liquidation Capital credit When agreed capital is not given Old partners’ capital Fraction of interest Positive Asset Revaluation Personal gain or loss Net advantage
Test Material No. 16 1. B 2. C 3. A 4. B 5. B 6. D 7. A 8. C P160,000 + P380,000 = P540,000 x 1/4 = P135,000 9. B 10. C P120,000 + (P20,000* x 1/5) = P124,000 AC CC Bonus P420,000 P400,000 P20,000 140,000 160,000 (20,000) P560,000 P560,000 -----AC CC Bonus old partners P320,000 P360,000 (P40,000) new partner 160,000 120,000 40,000 P480,000 P480,000 (P100,000 + P200,000) 3/4 = P400,000 x 1/4 = P100,000 Cariaso Carino Carillo Capital balances before admission of Cardel P400,000 P200,000 P100,000 Asset Revaluation (P200,000 1/4) - P700,000 = P100,000 60,000 30,000 10,000 Capital balances after asset revaluation P460,000 P230,000 P110,000 Fraction of remaining interest ¾ ¾ ¾ Capital balances after admission of Cardel P345,000 P172,500 P82,500 P400,000 x 3/4 = P300,000; P200,000 x 3/4 = P150,000; P100,000 x 3/4 = P75,000 *old partners new partner
11.
D
12. 13.
C B
14.
A
15. 16.
B C
AC P385,000 192,500 97,500 225,000 P900,000
Cariaso Carino Carillo Cardel
17.
B
Coral Capital bal. before the
Camus
CC P400,000 200,000 100,000 200,000 P900,000 Cerda
Bonus (P15,000) (7,500) (2,500) 25,000 -
Cordero
Total
Chapter 4 - Partnership Dissolution Suggested Answers
18. 19. 20.
B A A
admission of Cordero Transfer of 15% int. Investment of Cordero Asset Revaluation Bonus to old partners Capital bal. after the admission of Cordero
P190,000
P160,000 ( 24,000)
P120,000
15,000 22,000
9,000 13,200
6,000 8,800
(44,000)
P470,000 -----160,000 30,000 ------
P227,000
P158,200
P134,800
P140,000
P660,000
Coral 50% x 80% = Camua 30% x 80% = Cerda 20% x 80% = Cordero
40% 24% 16% 20%
P 24,000 160,000
Test Material No. 17 Problem A 1.
2.
3.
4.
5.
Asset revaluation to old partners - P100,000; no bonus AC Old P600,000 New 150,000 P750,000
CC P500,000 150,000 P650,000
Asset Rev P100,000 ------P100,000
No asset revaluation; bonus to old partners - P20,000 AC Old P520,000 New 130,000 P650,000
CC P500,000 150,000 P650,000
Bonus P 20,000 ( 20,000) -------
No asset revaluation;, bonus to new partner - P45,000 AC Old P455,000 New 195,000 P650,000
CC P 500,000 150,000 P650,000
Bonus (P45,000) 45,000 ------
Asset revaluation to old partners - P100,000; bonus to old partners - P37,500 AC CC Asset Rev Old P637,500 P500,000 P100,000 New 112,500 150,000 ------P750,000 P650,000 P100,000 No asset revaluation; bonus to old partners - P20,000. AC Old P520,000 New 130,000 P650,000 P750,000
CC P500,000 150,000 P650,000 P650,000
Problem B Total capital of the partnership [(P148,000 + P260,000 + P192,000) 80%] Interest of Cinco