MIDTERM DEPARTMENTAL EXAM

AY 2018-2019 SHORT TERM

JUNE 23, 2019
LONG PROBLEM
1 Answer: 45,450
Joi (20%) Mari (20%)
Balances 42,000 39,000
Right of offset 9,000
Total 51,000 39,000
Asset Revaluation (216,000-180,000) 7,200 7,200
Balances 58,200 46,200
Bonus to Retiring Partner 3,000 (750)
61,200 45,450
Settlement (61,200)
-

2 Answer: 5,400
Total Capital 60,000
Liabilities 3,000
Total Assets 63,000
Less: Cash prior to Liquidation
Cash for Distribution to Partners 22,200
Payment to Liabilities 3,000
Proceeds from Sale of NCA (23,200) 2,000
Book value of NCA 61,000
Proceeds from Sale of NCA (23,200)
Loss from sale of NCA 37,800
Multiply by Dray's Ratio (3/21) 14%
Dray's Share in Loss upon Conversion of NCA 5,400

3 Answer: A will 368 from B

Joint operation - A
Purchases – A 400 960
Purchases – B 320 720
Expenses – A 800 40
200

Allocation to: A B
Profit for the year
10% commission on purchases:
(10% x 400) – A 40
(10% x 320) – B 32
20% commission on sales:
(20% x 960) – A 192
(20% x 720) – B 144
Total to be divided equally
Allocation: (208 ÷ 2) -104 -104
Net share - as allocated 128 72

Cash settlement determined as follows:

Joint operation - A
Purchases 400 960
Expenses 800
Net share 128
 Cash settlement – receipt 368

Joint operation - B
Purchases 320 720
Net share 72 40
368
4 Answer: 1,421,600
Installment receivable - 2017 800,000
Installment receivable - 2018 2,400,000
Deferred gross profit - 2017 176,000
Deferred gross profit - 2018 576,000

Installment receivable - 2017 0

Installment receivable - 2018 960,000
Installment receivable - 2019 2,400,000
Deferred gross profit - 2017 176,000
Deferred gross profit - 2018 576,000
Deferred gross profit - 2019 1,500,000

Collection from 2017 Receivables (800,000 - 0) 800,000

Multiply by 2017 Gross Profit Rate (176,000/800,000) 22%
2017 Realized Gross Profit in 2019 Collection 176,000

Collection from 2018 Receivables (2,400,000 - 960,000) 1,440,000

Multiply by 2018 Gross Profit Rate (576,000/2,400,000) 24%
2018 Realized Gross Profit in 2019 Collection 345,600

Deferred gross profit - 2019 1,500,000

Divide by Gross Profit based on Sales 25%
2019 Installment Sales 6,000,000
Less: Installment receivable - 2019 2,400,000
2019 Collections 3,600,000
Multiply by Gross Profit based on Sales 25%
2019 Realized Gross Profit in 2019 Collection 900,000

2017 Realized Gross Profit in 2019 Collection 176,000

2018 Realized Gross Profit in 2019 Collection 345,600
2019 Realized Gross Profit in 2019 Collection 900,000
Total Realized Gross Profit in 2019 1,421,600
 Chase (60%) Total
90,000 171,000
9,000
90,000 180,000
21,600 36,000
111,600 216,000
(2,250) -
109,350

Sales - A
Sales - B
Other income - B
Profit - credit balance

Totals
200

-40
-32

-192
-144
-208
208
-

Collections on sales
Collections on sales
Collections on other income
Cash settlement - payment
Balance ###
Additio 60,000.00
Withdra (15,000.00)
Balance ###

Assets, P 180,000
Joi, loa P 9,000
Joi, cap 42,000
Mari, c 39,000
Chase, 90,000
Total P 180,000

Dray 1,000
Klay 25,000
Kevin 25,000
Steph 9,000
60,000