Multiple Choice 6.

C Salaries = P120,000 + P96,000 + P72,000 P 288,000

1. C Jan. 1 – Mar. 31 P 80,000 x 3 = P 240,000 Interest 97,500
Apr. 1 – May 31 96,000 x 2 = 192,000 Balance = P10,000 x 3 30,000
June 1 – Aug. 31 112,000 x 3 = 336,000 Total P 415,500
Sept. 1 – Dec. 31 72,000 x 4 = 288,000
P1,056,000 / 12 = P88,000 7. C Original capital P 950,000
Additional investment 120,000
2. B Bañas Belda Withdrawals ( 140,000)
Capital beg. 120,000 118,000 Net income/profit 415,500
Share in net loss (32,000) (16,000) Total partnership capital P1,345,500
P88,000 P102,000
8. B Besa Basco Buan Baduel Total
3. A Bernardo Belo Interest P 7,500 P3,750 P3,750 P3,000 P18,000
Salaries P P 90,000 Salaries 15,000 9,000 24,000
110,000 Add’l profit to 5,000 5,000
Balance – 60:40 (12,000) (8,000) Baduel
P98,000 P82,000 Balance 15,000* 15,000 10,000 10,000 50,000
P37,500 P27,750 P13,750 P18,000 P97,000
4. D Bustos
Net Profit P220,000 *P37,500 – P7,500 – P15,000 = P15,000/30% = P50,000
Bonus P220,000 x 10%/110% (20,000) 20,000
Interest P220,000 – P200,000 = P20,000 x 10% (2,000) 9. B
Salaries ( 44,000) 24,000
Balance P 154,000 10. C
Share of Bustos x 2/10 30,800
Total profit share of Bustos P74,800 11. C try distributing any profit or loss amount

5. B Banta: 12. C Bulan Bustos Bucao Total

Jan. 1 – June 30 P200,000 x 6 = P 1,200,000 Salaries P24,000 P18,000 P12,000 P 54,000
Interest 19,500 24,700 29,400 73,600
Jul. 1 - Dec. 31 320,000 x 6 = 1,920,000 Balance – 2:4:4 10,480 20,960 20,960 52,400
Total P53,980 P63,660 P62,360 P180,000
P 3,120,000 / 12 = P260,000 x 10% = P26,000
Bulan
Berba: P300,000 x 10% = 30,000 Jan. 1 – July 1 P150,000 x 6 = P 900,000
July 1 – Oct. 1 180,000 x 3 = 540,000
Borja: Oct. 1 – Dec. 170,000 x 3 = 510,000
Jan. 1 – Sept. 30 P450,000 x 9 = P4,050,000 31
P1,950,000 / 12 = P162,500
Oct. 1 – Dec. 31 310,000 x 3 = 930,000
Bustos
P4,980,000/12 = P415,000 x 10% = 41,500
Jan. 1 – Aug. P200,000 x 7 = P1,400,000
P97,500
1
PC – Chapter 3 page 2

Aug. 1 – Oct. 220,000 x 2 = 440,000 5. C

1 6. C Beltran Barba Total
Oct. 1 – Dec. 210,000 x 3 = 630,000 Capital beginning P400,000 P500,000 P900,000
31 Share in net income-equally 200,000 200,000 400,000
P2,470,000 / 12 = P205,833 Share in net loss – 2:1 ( 160,000) ( 80,000) ( 240,000)
Capital, end P440,000 P620,000 P1,060,000
Bucao
Jan. 1 – Nov. 1 P250,000 x 10 = P2,500,000 7. C P2,500,000 + (P1,800,000 + P400,000) = P4,700,000 – P2,000,000 =
Nov. 1 – Dec. 220,000 x 2 = 440,000 P2,700,000
31
P2,940,000 / 12 = P245,000 8. B Beran and Banda = 300/1,100 x P1,100,000 = P300,000;
Banjo = 500/1,100 x P1,100,000 = P500,000
13. A Bulan Bustos Bucao
Original capital P150,000 P200,000 P250,000 9. B Banzon Borja Total
Additional investment 30,000 20,000 Salaries P160,000 P200,000 P360,000
Withdrawals ( 10,000) ( 10,000) ( 30,000) Interest on beginning capital 36,000 60,000 96,000
Share in profit 53,980 63,660 62,360 Remainder – equally 72,000 72,000 144,000
Capital, Dec. 31, 2005 P223,980 P273,660 P282,360 Total P268,000 P332,000 P600,000

14. D Briones Balen Burgos Total 10. B P520,000 – P100,000 – P240,000 = P180,000 / 20% = P900,000
Interest P 94,500 P 47,730 P 32,470 P174,700
Salaries 244,650 165,250 409,900 11. D Jan. 1 – June 30 840,000 x 6 P5,040,000
Balance –Equally (278,616) (278,616) (278,616) (835,848) July 1 – July 31 1,080,000 x 1 1,080,000
Total P 60,534 (P80,896) (P251,248) Aug. 1 – 12/31 990,000 x 5 4,950,000
P11,070,000/12 = P922,500 x12%=P110,700
TM 10
1. F 5. T 9. F 13. T 17. T
2. F 6. F 10. T 14. T 18. F 12. C Basilio Bituin Total
3. T 7. T 11. T 15. F 19. T Salaries P220,000 P 180,000 P400,000
4. T 8. T 12. T 16. T 20. T Remainder – 60:40 ( 24,000) ( 16,000) ( 40,000)
Total P 196,000 P 164,000 P360,000
TM 11
1. F 4. B 7. C 10. E 13. J 13. C P1,000,000 + (P1,800,000 x 20%) – P200,000 = P1,160,000
2. G 5. A 8. H 11. L 14 N 14. C P600,000 + P200,000 = P800,000/2 = P400,000
3. M 6. P 9. D 12. O 15. Q 15. D P450,000 x 60% = P270,000

TM 12
1. D
2. B
3. B
4. C
PC – Chapter 3 page 3

TM 13 Operating expenses:
Problem A Depreciation – building P30,000
Depreciation – furniture and fixtures 30,000
Beltran, Bernal and Basco Partnership Other operating expenses 300,000 360,000
Schedule of the Distribution of Partnership Profit Profit before Income Tax P540,000
Income Tax 162,000
Beltran Bernal Basco Total Profit after Income Tax P378,000
Salaries P57,600 P48,000 P38,400 P144,000
Interest 34,560 46,080 66,240 146,880 2. Net income is allocated as follows:
Balance – equally 55,040 55,040 55,040 165,120 Bilbao Bragas Total
Total distribution of profit P147,200 P149,120 P159,680 P456,000 Salaries P240,000 P240,000 P480,000
Interest on beginning capital 75,000 62,000 137,000
Beltran, Bernal and Basco Partnership Remainder -2:3 (95,600) (143,400) (239,000)
Statement of Changes in Partners’ Equity Total P219,400 P158,600 P378,000
For the Year Ended December 31, 2010
Income Summary 378,000
Beltran Bernal Basco Total Bilbao, Capital, 219,400
Original capital P384,000 P576,000 P864,000 P 1,824,000 Bragas, Capital 158,600
Add: Add’l investment 96,000 96,000
Share in profit 47,200 149,120 159,680 456,000 3. Bilbao, Capital 200,000
Total P627,200 P725,120 P1,023,680 P2,376,000 Bragas, Capital 240,000
Less Drawing ( 48,000) ( 48,000) (192,000) ( 288,000) Bilbao, Drawing 200,000
Capital, December 31, P579,200 P677,120 P831,680 P2,088,000 Bragas, Drawing 240,000
2010
Double B Partnership
Statement of Changes in Partners’ Equity
For the Year Ended December 31, 2010
Problem B
Bilbao Bragas Total
1. Capital, January 1 P1,300,000 P1,240,000 P2,540,000
Double B Partnership Add: Additional investment 200,000 200,000
Income Statement Share in profit 219,400 158,600 378,000
For the Year Ended December 31, 2010 Total P1,719,400 P1,398,600 P3,118,000
Less Drawing 200,000 240,000 440,000
Sales P1,800,000 Capital, December 31 P1,519,400 P1,158,600 P2,678,000
Cost of goods sold:
Inventory, January 1 P 800,000
Purchases 1,200,000
Cost of goods available for sale P2,000,000
Less Inventory, December 31 1,100,000 900,000
Gross profit P900,000