after the retirement of E?
Partnership and Financial Accounting
Problem A. The partnership of D, T,and I
was formed on January 1, 2016. The
original investments were as follows: D,
P240,000; T, P360,000; I, P540,000.
According to the partnership agreement,
net income or loss will be divided among
the respective partners as follows: (1)
salaries of P80,000 for D, P70,000 for T,
and P48,000 for I. (2) Interest of 9% on
the original capital balance for each
partner. (3) Remainder is divided equally.
For I to receive P39,600 as his share
in the loss of the partnership, how
much is the net loss that must be
generated by the partnership?
Problem B. CV and LX are partners with
profit and loss ratio of 80:20 and capital
balances of P700,000 and P350,000
respectively. TM is to be admitted into the
partnership by purchasing a 30% interest
in the capital, profit and loss for P420,000.
Assuming this time, upon admission of TM,
the equipment of the partnership is
undervalued.
Determine the balances of the
following:
a. Increase in the asset account of
the partnership.
b. Capital adjustment of CV for his
share in the adjustment of the
undervalued equipment.
c. Capital adjustment of LX as a
result of admission of TM.
d. Net change of CV as a result of
revaluation of asset and
admission of TM.
Problem C. A, B and C formed a
partnership with 5:3:2 profit ratio and
original capital ratio of 4:4:2. On July 1,
2013, J was admitted for 20% interest in
capital and 25% in profits for P87,500
cash, and the old partners agree to bring
their interest to their original capital and
interest ratio. J is the recipient of the
transfer of capital of P280,000 from the
existing partners. Net income was
P210,000 before admission and agreed to
revalue an overvalued equipment by
P35,000. Capital balance of B increased by
P10,500 as a result of the admission of J
while Cs capital balance at the start of
the year is P700,000. The capital
balance of A at the start of the year?
Problem D. E, J and M were partners with
capital balances on January 2013of
P70,000, P84,000 and P56,000,
respectively. Their loss sharing ratio is
3:5:2. On July 2013, E retires. On that
date, net income is P48,000. Partners
agreed to pay-off E P76,560. Capital of J
Problem E. Majarica Company began
operations on January 1, 2014. The
financial statements contained the
following errors:
2014 2015
Ending Inventory 800,000 U 400,000 O
Depreciation 150,000 U ---
Insurance Expense 50,000 O 50,000 U
Partnership and Financial Accounting
Problem A. The partnership of D, T,and I
was formed on January 1, 2016. The
original investments were as follows: D,
P240,000; T, P360,000; I, P540,000.
According to the partnership agreement,
net income or loss will be divided among
the respective partners as follows: (1)
salaries of P80,000 for D, P70,000 for T,
and P48,000 for I. (2) Interest of 9% on
the original capital balance for each
partner. (3) Remainder is divided equally.
For I to receive P39,600 as his share
in the loss of the partnership, how
much is the net loss that must be
generated by the partnership?
Problem B. CV and LX are partners with
profit and loss ratio of 80:20 and capital
balances of P700,000 and P350,000
respectively. TM is to be admitted into the
partnership by purchasing a 30% interest
in the capital, profit and loss for P420,000.
Assuming this time, upon admission of TM,
the equipment of the partnership is
undervalued.
Determine the balances of the
following:
a. Increase in the asset account of
the partnership.
b. Capital adjustment of CV for his
share in the adjustment of the
undervalued equipment.
c. Capital adjustment of LX as a
result of admission of TM.
d. Net change of CV as a result of
revaluation of asset and
admission of TM.
Problem C. A, B and C formed a
partnership with 5:3:2 profit ratio and
original capital ratio of 4:4:2. On July 1,
2013, J was admitted for 20% interest in
capital and 25% in profits for P87,500
cash, and the old partners agree to bring
their interest to their original capital and
interest ratio. J is the recipient of the
transfer of capital of P280,000 from the
existing partners. Net income was
P210,000 before admission and agreed to
revalue an overvalued equipment by
P35,000. Capital balance of B increased by
P10,500 as a result of the admission of J
while Cs capital balance at the start of
the year is P700,000. The capital
balance of A at the start of the year?

Problem D. E, J and M were partners with

capital balances on January 2013of
P70,000, P84,000 and P56,000,
respectively. Their loss sharing ratio is
3:5:2. On July 2013, E retires. On that
date, net income is P48,000. Partners
agreed to pay-off E P76,560. Capital of J
after the retirement of E?

Problem E. Majarica Company began

operations on January 1, 2014. The
financial statements contained the
following errors:
2014 2015
Ending Inventory 800,000 U 400,000 O
Depreciation 150,000 U ---
Insurance Expense 50,000 O 50,000 U
Prepaid insurance 50,000 U ----
In addition, on December 31, 2015, a fully
depreciated equipment was sold for
P100,000 cash but the sale was not
recorded until 2016. Before income tax,
what is the total effect of the errors
on
a. Net Income for 2014?
b. Net Income for 2015?
c. Working Capital on December 31,
2015?
d. Retained earnings on December Prepaid insurance 50,000 U ----
31, 2015? In addition, on December 31, 2015, a fully
depreciated equipment was sold for
Problem F. Napier Co. provided the P100,000 cash but the sale was not
following information on selected recorded until 2016. Before income tax,
transactions during 2013: what is the total effect of the errors
on
Purchase of land by issuing bonds a. Net Income for 2014?
P500,000 b. Net Income for 2015?
Proceeds from issuing bonds c. Working Capital on December 31,
1,000,000 2015?
Purchases of inventory d. Retained earnings on December
1,900,000 31, 2015?
Purchases of treasury stock
300,000 Problem F. Napier Co. provided the
Loans made to affiliated corporations following information on selected
700,000 transactions during 2013:
Dividends paid to preferred stockholders
200,000 Purchase of land by issuing bonds
Proceeds from issuing preferred stock P500,000
800,000 Proceeds from issuing bonds
Proceeds from sale of equipment 1,000,000
100,000 Purchases of inventory
1,900,000
a. The net cash provided (used) by Purchases of treasury stock
investing activities during 2013 300,000
is? Loans made to affiliated corporations
b. The net cash provided by 700,000
financing activities during 2013 Dividends paid to preferred stockholders
is? 200,000
Proceeds from issuing preferred stock
800,000
Proceeds from sale of equipment
100,000
c. The net cash provided (used) by d. The net cash provided by
investing activities during 2013 financing activities during 2013
is? is?