POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

COLLEGE OF ACCOUNTANCY
Sta. Mesa, Manila
Partnership SY 2015-2016 2ND Semester
Name: __________________________________
Year and Section: _________________________
I.

Date:_______________
Score:______________

Maria, Vicky and Elina are partners sharing profits on a 5:3:2 ratio. On January 1, 2015, Daria was admitted
into the partnership with 20% share in the profits. The old partners continue to participate in profits in their
original ratios.
For the year 2013, the partnership books showed a net income of Php 25,000. It was disclosed, however
that the following errors were made.

Accrued expenses not recorded at year-end

Inventory overstated
Purchases not recorded, for which goods have been received
And inventoried
Income received in advance not adjusted
Unused supplies not taken up at year end

2014
Php 12,000.00

2015
Php 31,000.00
Php 20,000.00

Php 15,000.00
Php 9,000.00

Instruction
1. Determine the new profit and loss ratio of the old partners.
2. Determine the share of the partners in the corrected net income of the partnership.
II.

The partners of TVJ Partnership are Tere, Vincent and Jake. During the current year, their average capital
balances are as follows:
The partnership agreement provides that partners shall receive;
1.
2.
3.
4.

Annual allowance of 6% of their average capital balances;

Salary allowances as follows: Tere none; Vincent Php 48,000; Jake Php 40,000;
Vincent, who manages the business, is to receive a bonus of 25% of income excess of Php 72,000 after
partners interest and salary allowances;
Residual profits will be divided in the ratio of 5:3:2.

Instruction
Prepare separate schedules showing how income or loss will be divided among the three partners
in each of the following cases. The figure given is the income or loss for the year that is available for
distribution to partners.
a. Php 25,000.00
b. Php 66,000.00
c. Php 250,000.00
III.

The following are the capital accounts of the partners in the Sugarpova on June 30, 2015:
Capital Balance
Profit and Loss Ratio
Sugar
324,000
5/10
Sweet
216,000
4/10
Honey
135,000
1/10
On July 1, 2015, Marble invests Php 127,620 in the business for a one-sixth interest in net assets. Profits
are to be shared equally after admission.
Instructions:
1. Give two alternative solutions, in journal entry form, to record Marbles admission to the firm.
Which method/solution will be preferred Marble?
2. Give two alternative journal entries to record Marbles admission, if instead of investing, he
purchases a one-sixth interest ratably from all partners.

IV.

The partnership of Sally, Shawie and Siony have capital account balances as follows: Sally 70,000; Shawie
100,000; Siony 80,000. Their profit and loss ratio are 30%, 50% and 20% respectively. With the consent
and knowledge of Sally and Shawie, Siony sold her interest to Solly. Siony was paid 92,000 in cash.

Instructions:

What is the new capital balances of the partners?