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    Partnership Review Questions

    Uploaded by

    Christien Mae Unabia
    The document contains 13 questions about partnership accounting, including: - How non-cash contributions from partners should be recorded - What partners should do if the partnership cannot pay its debts - The different types of partners - The difference between de facto and de jure partnerships - How to record assets contributed by partners at formation - How to record partners' initial capital accounts

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    Partnership Review Questions

    Uploaded by

    Christien Mae Unabia
    121 views2 pages
    The document contains 13 questions about partnership accounting, including: - How non-cash contributions from partners should be recorded - What partners should do if the partnership cannot pay its debts - The different types of partners - The difference between de facto and de jure partnerships - How to record assets contributed by partners at formation - How to record partners' initial capital accounts

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    The document contains 13 questions about partnership accounting, including: - How non-cash contributions from partners should be recorded - What partners should do if the partnership cannot pay its debts - The different types of partners - The difference between de facto and de jure partnerships - How to record assets contributed by partners at formation - How to record partners' initial capital accounts

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    121 views2 pages

    Partnership Review Questions

    Uploaded by

    Christien Mae Unabia
    The document contains 13 questions about partnership accounting, including: - How non-cash contributions from partners should be recorded - What partners should do if the partnership cannot pay its debts - The different types of partners - The difference between de facto and de jure partnerships - How to record assets contributed by partners at formation - How to record partners' initial capital accounts

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Partnership Accounting Review Questions

    1. What should the articles of partnership make clear of?

    2. How should non-cash contributions from a partner in the partnership be


    recorded?

    3. What should the partners do when it cannot pay its debts with business
    assets?

    4. What are the types of partners and describe each

    5. What is the difference between a de facto partnership and a de jure


    partnership?

    6. Anda and Arnold formed a partnership, each contributing assets to the


    business. Anda contributed inventory with a current market value in
    excess of it carrying amount. Arnold contributed real estate with a
    carrying amount in excess of its current market value. At what amount
    should the partnership record each of the following assets - Inventory and
    Real Estate?

    7. How should property other than cash, which are part of the initial
    investment, be recorded? (case: both partners are initially sole
    proprietors)

    8. On June 30, 201, a partnership was formed by Alex and Arvin. Alex
    contributed cash. Arvin, previously a sole proprietor, contributed non-cash
    assets, including a realty subject to mortgage, which was assumed by the
    partnership. How should Arvin’s capital (initial investment) be recorded at
    June 30, 2001?

    9. Anna and Alma formed a partnership. Anna contributes cash of


    P15,000 and a computer that costs her P30,000. Alma contributes
    equipment costing P30,000. The current market value of the assets are
    as follows: computer P22,500; equipment P37,500. The partnership will
    assume a P7,500 liability on the equipment contributed by Alma. How
    should the capital accounts of the partners be credited?

    10. Alona enters into a partnership contributing the following:


    Cash P2,000
    Accounts Receivable P400
    Land P24,000 cost, P40,000, fair market value
    Accounts Payable P1,600. What will be the initial amount recorded in
    Alona’s capital account?

    11. The partnership of Anita and Alicia was formed on April 1, 2001. At that
    date the following assets are contributed:

    Cash 150,000 70,000


    Merchandise Inventory 110,000
    Building 200,000
    Furniture and Equipment 30,000

    The building is a subject to mortgage loan of P60,000 which is to be


    assumed by the partnership. The partnership agreement provides that Anita
    and Alicia share an income and loss of 25% and 75% respectively. What
    would be Anita and Alicia’s respective capital account on April 1, 2001 would
    be?

    12. Based on the information on No.11, if the partnership agreement provides


    that the partners initially should have an equal interest in partnership capital
    without recognizing goodwill. What would be Anita’s capital account on April
    1, 2001?

    13. On October 1, 2001, Albert and Armand formed a partnership and agreed
    to share profits and losses in the ration of 3:7, respectively. Albert contributed
    a parcel of land that cost him P100,000. Armand contributed P150,000 in
    cash. The land was sold for P180,000 on October 1, 2001, immediately after
    the formation. What amount should be recorded in both of the partners
    account on the formation of the partnership.

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