1
Name :__________________________ Date: ____________________
Subject :__________________________
MIDTERM EXAM
(Accounting for Partnerships and Corporate Liquidation)
GENYA, MARLA, and CARLA decided to dissolve their partnership on November 30, 2021. Their profit and loss ratio are as follows:
Capitals
P & L
Ratio
GENYA
500,000
40%
MARLA
600,000
30%
CARLA
200,000
30%
The net income from January 1, 2021 to November 21, 2021 is P440,000. On November 30, 2021, the cash balance is P400,000, and
that of liabilities is P900,000. GENYA is to receive P552,000 in the settlement of her interest.
1. (1) The loss on realization, and (2) the amount to be realized from the sale of non-cash assets?
a. (1) 310,000; (2) 1,870,000 c. (1) 310,000; (2) 1,930,000
b. (1) 124,000; (2) 2,550,000 d. (1) 276,000; (2) 1,930,000
The accounts of the Partnership of R, S, and T at the end of its fiscal year on November 30, 2021 are as follows:
Cash
103,750
Loan from S
20,000
Other non-cash
assets
707,500
R, Capital (30%)
266,250
Loan to R
15,000
S, Capital (30%)
136,250
Liabilities
262,500
T, Capital (20%)
141,250
2. If in the first cash distribution, S received P50,000, which of the following statements is incorrect?
a) Total amount distributed to partners is P336,250
b) Total amount paid to creditors is P262,500
c) Total amount realized from the non-cash assets is P598,750
d) R received an amount equal to P187,500
The following condensed balance sheet is prepared for SERGIO and JUAN, who share profits and losses in the ratio of 60:40,
respectively:
Other Assets
450,000
Accounts Payable
120,000
Sergio, Loan
20,000
Sergio, Capital
195,000
Juan, Capital
155,000
Total
470,000
Total
470,000
3. The partners have decided to liquidate the partnership. If the other assets are sold for P385,000, what amount of the available
cash should be distributed to SERGIO?
a. P136,000 c. P159,000
b. P156,000 d. P195,000
The accounts of the partnership of RST at December 31, 2021 are as follows:
Cash
82,500
Liabilities
62,500
Non-cash assets
728,750
Loan from S
20,000
Loan to R
15,000
R, Capital
206,250
S, Capital
366,250
T, Capital
171,250
Total
826,250
Total
826,250
They divide profits and losses 3:5:2 to R, S, and T respectively. They have decided to liquidate the partnership at this date.
4. Determine the amount payable to partner T if cash is paid just before the start of liquidation on December 31, 2021:
a. P16,750 c. P17,679
b. P17,650 d. P17,560
5. Determine the amount Partner R and Partner S would have received by the time Partner T would have received a cumulative
amount of P45,000:
a. R, P1,785 and S, P72,650 c. R, P1,875 and S, P70,625
b. R, P1,578 and S, P70,265 d. R, P1,758 and S, P72,600
On January 1. 2021. The partners CARLO, DIEGO, and EDGAR, who share profits and losses in the ratio of 5:3:2. Respectively, decided
to liquidate their partnership. On this date the partnership condensed balance sheet was as follows:
Cash
50,000
Liabilities
60,000
Other Assets
250,000
Carlo, capital
80,000
Diego, capital
90,000
Edgar. Capital
70,000
Total
300,000
300,000
CARLO
EDGAR
15,000
51,000
44,000
40,000
45,000
35,000
55,000
33,000
22,000
60,000
36,000
24,000
Capital Balance
Profit and Loss %
ASSER
JING
TONY
