AB CD

Dr. AFDA ₱18,000.00 Dr. AFDA

Cr. AR ₱10,000.00 Capital
Capital ₱8,000.00 Cr. AR

Dr. Inventory ₱15,000.00 Dr. Capital

Cr. Capital ₱15,000.00 Cr. Inventory
Dr. Capital
Cr. Prepaid Rent
Dr. Capital ₱20,000.00
Accumulated Depn ₱60,000.00
Cr. Building ₱80,000.00
Dr. Accum Depn
Capital
Cr. Equipment
Dr. Capital
Cr. Interest Payable
Dr. Office Supplies ₱9,000.00
Cr. Capital ₱9,000.00

Closing Entries Dr. Capital ₱665,000.00 Dr. Capital

Accounts Payable ₱36,000.00 Accounts Payable
Cr. Cash ₱42,000.00 Note Payable
AR ₱240,000.00 Interest Payable
Inventory ₱90,000.00 Cr. Cash
Building ₱320,000.00 AR
Office supplies ₱9,000.00 Inventory
Prepaid Rent
Equipment
NEW PARTNERSHIP BOOKS
Net Investment Method P/L Add/Withdraw
Dr. Cash ₱104,000.00 Dr. Cash
AR ₱805,500.00 Cr. CD, Capital
Notes Receivable ₱120,000.00 EF, Capital
Int Receivable ₱3,450.00
Inventory ₱222,000.00
Office Supplies ₱9,000.00
Prepaid Rent ₱39,000.00
Building ₱320,000.00
Equipment ₱160,000.00
 Cr. AP ₱111,000.00
Accrued Liab ₱2,450.00
Note Payable ₱240,000.00
Int Payable ₱2,000.00
AB, Capital ₱665,000.00
CD, Capital ₱293,500.00
EF, Capital ₱469,000.00

AB CD EF AB
Capital ₱665,000.00 ₱293,500.00 ₱469,000.00 ₱665,000.00
₱0.40
Base ₱1,662,500.00

P/L % ₱665,000.00
Inv/(W) ₱0.00
 CD EF
₱24,000.00 Dr. Capital ₱7,000.00
₱8,500.00 Cr. AR ₱7,000.00
₱32,500.00
Dr. Interest Receivable ₱3,450.00
Cr. Capital ₱3,450.00
₱18,000.00
₱18,000.00
₱12,000.00 Dr. Capital ₱5,000.00
₱12,000.00 Cr. Prepaid Rent ₱5,000.00

₱25,000.00
₱25,000.00
₱50,000.00
₱2,000.00
₱2,000.00

Capital ₱2,450.00
Accrued Liability ₱2,450.00
₱293,500.00 Dr. Capital ₱469,000.00
₱41,000.00 Accounts Payable ₱34,000.00
₱240,000.00 Accrued Liability ₱2,450.00
₱2,000.00 Cr. Cash ₱34,000.00
₱28,000.00 AR ₱273,000.00
₱292,500.00 Notes Receivable ₱120,000.00
₱72,000.00 Int Receivable ₱3,450.00
₱24,000.00 Inventory ₱60,000.00
₱160,000.00 Prepaid Rent ₱15,000.00
ERSHIP BOOKS
P/L Add/Withdraw Bonus
₱235,000.00 Dr. AB, Capital ₱94,000.00
₱122,125.00 Cr. CD, Capital ₱63,375.00
₱112,875.00 EF, Capital ₱30,625.00
CD EF AB CD EF
₱293,500.00 ₱469,000.00 ₱665,000.00 ₱293,500.00 ₱469,000.00

Total ₱1,427,500.00

₱415,625.00 ₱581,875.00 P/L % ₱571,000.00 ₱356,875.00 ₱499,625.00

₱122,125.00 ₱112,875.00 Bonus -₱94,000.00 ₱63,375.00 ₱30,625.00
I.(a)
AB QR XY Tot
Bonus ₱135,000.00 ₱135,000.00
Salaries ₱360,000.00 ₱600,000.00 ₱540,000.00 ₱1,500,000.00
Interest ₱18,360.00 ₱22,680.00 ₱11,520.00 ₱52,560.00
Remainder ₱286,860.00 ₱458,976.00 ₱401,604.00 ₱1,147,440.00
Profit Sharing ₱800,220.00 ₱1,081,656.00 ₱953,124.00 ₱2,835,000.00

Interest on ending Capital Balance

Ending Capital ₱153,000.00 ₱189,000.00 ₱96,000.00

I.(b)
AB QR XY Tot
Bonus ₱84,000.00 ₱84,000.00
Salaries ₱480,000.00 ₱630,000.00 ₱510,000.00 ₱1,620,000.00
Interest ₱16,950.00 ₱16,125.00 ₱9,375.00 ₱42,450.00
Remainder -₱154,766.67 -₱232,150.00 -₱309,533.33 -₱696,450.00
Profit Sharing ₱426,183.33 ₱413,975.00 ₱209,841.67 ₱1,050,000.00

Interest on Weighted Capital Balances

Weighted ₱169,500.00 ₱161,250.00 ₱93,750.00

I.(c)
AB QR XY Tot
Bonus ₱0.00
Salaries ₱600,000.00 ₱540,000.00 ₱750,000.00 ₱1,890,000.00
Interest ₱1,950.00 ₱7,350.00 ₱0.00 ₱9,300.00
Remainder -₱55,142.31 -₱73,523.08 -₱30,634.62 -₱159,300.00
Profit Sharing ₱546,807.69 ₱473,826.92 ₱719,365.38 ₱1,740,000.00

I.(d)
AB QR XY Tot
Bonus ₱0.00
Salaries ₱384,000.00 ₱480,000.00 ₱504,000.00 ₱1,368,000.00
Interest ₱4,500.00 ₱2,250.00 ₱5,250.00 ₱12,000.00
Remainder -₱737,307.69 -₱983,076.92 -₱409,615.38 -₱2,130,000.00
Profit Sharing - ₱348,807.69 - ₱500,826.92 ₱99,634.62 - ₱750,000.00

I.(e)
AB QR XY Tot
Bonus ₱0.00
Salaries ₱240,000.00 ₱288,000.00 ₱432,000.00 ₱960,000.00
Interest ₱0.00
Remainder ₱0.00 ₱0.00 ₱0.00 ₱0.00
Profit Sharing ₱240,000.00 ₱288,000.00 ₱432,000.00 ₱960,000.00

II.
QR ST UV Tot
Beginning ₱750,000.00 ₱640,000.00 ₱480,000.00 ₱1,870,000.00
Investment ₱52,500.00 ₱135,000.00 ₱187,500.00
Regular Drawing -₱187,500.00 -₱160,000.00 -₱120,000.00 -₱467,500.00
Capital Drawing -₱45,000.00 -₱45,000.00
Profit Sharing Bonus ₱31,047.92 ₱31,047.92
Salaries ₱644,350.00 ₱612,500.00 ₱561,050.00 ₱1,817,900.00
Interest ₱78,937.50 ₱70,750.00 ₱46,125.00 ₱195,812.50
Remainder ₱93,143.75 ₱31,047.92 ₱31,047.92 ₱155,239.58
Ending Capital Balance ₱1,462,479.17 ₱1,329,297.92 ₱953,222.92 ₱3,745,000.00
I.1. Nonoy Binay Frank Total Dr. Nonoy, Capital
Capital ₱240,000.00 ₱120,000.00 ₱360,000.00 Binay, Capital
Purchase -₱80,000.00 -₱40,000.00 ₱120,000.00 ₱0.00 Cr.
Ending ₱160,000.00 ₱80,000.00 ₱120,000.00 ₱360,000.00

I.2. Same with 1

I.3.
Capital ₱240,000.00 ₱120,000.00 ₱360,000.00 Dr. Cash
Investment ₱180,000.00 ₱180,000.00 Cr.
Ending ₱240,000.00 ₱120,000.00 ₱180,000.00 ₱540,000.00

I.4.
Capital ₱240,000.00 ₱120,000.00 ₱360,000.00 Dr. Cash
Investment ₱180,000.00 ₱180,000.00 Nonoy, Capital
Bonus -₱67,500.00 -₱22,500.00 ₱90,000.00 ₱0.00 Binay, Capital
Ending ₱172,500.00 ₱97,500.00 ₱270,000.00 ₱540,000.00 Cr.

I.5.
Capital ₱240,000.00 ₱120,000.00 ₱360,000.00 Dr. Cash
Investment ₱150,000.00 ₱150,000.00 Cr.
Bonus ₱16,875.00 ₱5,625.00 -₱22,500.00 ₱0.00
Ending ₱256,875.00 ₱125,625.00 ₱127,500.00 ₱510,000.00

I.6.
Capital ₱240,000.00 ₱120,000.00 ₱360,000.00 Dr. Cash
Investment ₱150,000.00 ₱150,000.00 Goodwill
Goodwill ₱67,500.00 ₱22,500.00 ₱90,000.00 Cr.
Ending ₱307,500.00 ₱142,500.00 ₱150,000.00 ₱600,000.00

I.7.
Capital ₱240,000.00 ₱120,000.00 ₱360,000.00 Dr. Cash
Investment ₱100,000.00 ₱100,000.00 Nonoy, Capital
Overvaluation -₱45,000.00 -₱15,000.00 -₱60,000.00 Binay, Capital
Ending ₱195,000.00 ₱105,000.00 ₱100,000.00 ₱400,000.00 Cr.

II.
Marie Paz
Beginning ₱300,000.00 ₱1,500,000.00
Drawings -₱25,000.00 -₱25,000.00
Income Distribution ₱100,000.00
Interest ₱6,250.00 ₱31,250.00 ₱37,500.00
Salaries ₱40,000.00 ₱40,000.00
Remainder ₱11,250.00 ₱11,250.00 ₱22,500.00
Bal, 12/31/10 ₱332,500.00 ₱1,517,500.00

Drawings -₱30,000.00 -₱30,000.00

Income Distribution ₱150,000.00
Interest ₱8,312.50 ₱37,937.50 ₱46,250.00
Salaries ₱48,000.00 ₱48,000.00
Remainder ₱27,875.00 ₱27,875.00 ₱55,750.00
Bal, 6/30/11 ₱386,687.50 ₱1,553,312.50

Marie Paz Ivonne Total

Beg ₱386,687.50 ₱1,553,312.50 ₱800,000.00 ₱2,740,000.00
GW ₱276,000.00 ₱184,000.00 ₱460,000.00
Adjusted ₱662,687.50 ₱1,737,312.50 ₱800,000.00 ₱3,200,000.00
Drawings -₱12,000.00 -₱12,000.00 -₱12,000.00
Income Distribution ₱150,000.00
Interest ₱16,567.19 ₱43,432.81 ₱20,000.00 ₱80,000.00
Salaries ₱12,000.00 ₱12,000.00 ₱12,000.00 ₱36,000.00
Remainder ₱15,300.00 ₱10,200.00 ₱8,500.00 ₱34,000.00
Bal,12/31/11 ₱694,554.69 ₱1,790,945.31 ₱828,500.00 ₱3,314,000.00
Nonoy, Capital 80,000
Binay, Capital 40,000
Frank, Capital 120,000

Cash 180,000
Frank, Capital 180,000

Cash 180,000
Nonoy, Capital 67,500
Binay, Capital 22,500
Frank, Capital 270,000

Cash 150,000
Nonoy, Capital 16,875
Binay, Capital 5,625
Frank, Capital 127,500

Cash 150,000
Goodwill 90,000
Nonoy, Capital 67,500
Binay, Capital 22,500
Frank, Capital 150,000

Cash 100,000
Nonoy, Capital 45,000
Binay, Capital 15,000
Frank, Capital 100,000
I.a. A B C Dr. C, Capital
Capital ₱80,000.00 ₱92,000.00 ₱164,000.00 ₱336,000.00 Cr.
Sale of Interest ₱109,333.33 ₱54,666.67 -₱164,000.00 ₱0.00
End ₱189,333.33 ₱146,666.67 ₱0.00 ₱336,000.00

I.b.
Capital ₱80,000.00 ₱92,000.00 ₱164,000.00 ₱336,000.00 Dr. C, Capital
Bonus -₱4,000.00 -₱2,000.00 ₱6,000.00 ₱0.00 A, Capital
Sale -₱170,000.00 -₱170,000.00 B, Capital
End ₱76,000.00 ₱90,000.00 ₱0.00 ₱166,000.00 Cr.

I.c.
Capital ₱80,000.00 ₱92,000.00 ₱164,000.00 ₱336,000.00 Dr. C, Capital
Goodwill ₱12,000.00 ₱12,000.00 Goodwill
Sale -₱176,000.00 -₱176,000.00 Cr.
End ₱80,000.00 ₱92,000.00 ₱0.00 ₱172,000.00

I.d.
Capital ₱80,000.00 ₱92,000.00 ₱164,000.00 ₱336,000.00 Dr. Goodwill
Goodwill ₱12,000.00 ₱6,000.00 ₱12,000.00 ₱30,000.00 Cr.
Sale -₱176,000.00 -₱176,000.00
End ₱92,000.00 ₱98,000.00 ₱0.00 ₱190,000.00
Dr. C, Capital
Cr.

I.e.
Capital ₱80,000.00 ₱92,000.00 ₱164,000.00 ₱336,000.00 Dr. Building
Undervaluation ₱12,000.00 ₱6,000.00 ₱12,000.00 ₱30,000.00 Cr.
Sale -₱155,000.00 -₱155,000.00
Bonus ₱14,000.00 ₱7,000.00 -₱21,000.00 ₱0.00
End ₱106,000.00 ₱105,000.00 ₱0.00 ₱211,000.00 Dr. C, Capital
Cr.

I.f.
Capital ₱80,000.00 ₱92,000.00 ₱164,000.00 ₱336,000.00 Dr. A, Capital
Overvaluation ₱2,400.00 ₱1,200.00 ₱2,400.00 ₱6,000.00 B, Capital
Sale -₱158,000.00 -₱158,000.00 C, Capital
Bonus ₱5,600.00 ₱2,800.00 -₱8,400.00 ₱0.00 Cr.
End ₱88,000.00 ₱96,000.00 ₱0.00 ₱184,000.00
Dr. C, Capital
 Accum. Dep'n
Cr.

II.
Willie Manny Loren Total
Beg ₱128,750.00 ₱96,250.00 ₱225,000.00 ₱450,000.00
Undervaluation ₱15,000.00 ₱15,000.00 ₱30,000.00 ₱60,000.00
Loss -₱37,500.00 -₱37,500.00 -₱75,000.00 -₱150,000.00
Retirement -₱108,500.00 -₱108,500.00
Bonus ₱2,250.00 -₱750.00 -₱1,500.00
End ₱0.00 ₱73,000.00 ₱178,500.00 ₱251,500.00
C, Capital 164,000
A, Capital 109,333.33
B, Capital 54,666.67

C, Capital 166,000
A, Capital 4,000
B, Capital 2,000
Cash 170,000

C, Capital 164,000
Goodwill 12,000
Cash 176,000

Goodwill 30,000
A, Capital 12,000
B, Capital 6,000
C, Capital 12,000
C, Capital 176,000
Cash 176,000

Building 30,000
A, Capital 12,000
B, Capital 6,000
C, Capital 12,000
C, Capital 176,000
Cash 155,000
A, Capital 14,000
B, Capital 7,000

A, Capital 2,400
B, Capital 1,200
C, Capital 2,400
Equipment 6,000

C, Capital 171,200
Accum. Dep'n 36,000
Equipment 54,000
Cash 140,000
A, Capital 5,600
B, Capital 2,800
I.
1 Cash NCA Liab Boy
Balances ₱70,000.00 ₱595,000.00 ₱200,000.00 ₱80,000.00
Realization ₱245,000.00 -₱595,000.00 -₱70,000.00
Payment -₱200,000.00 -₱200,000.00
Remainder ₱115,000.00 ₱0.00 ₱0.00 ₱10,000.00
Payment to Partners -₱115,000.00 -₱10,000.00
₱0.00 ₱0.00

2 Cash NCA Liab Boy

Balances ₱70,000.00 ₱595,000.00 ₱200,000.00 ₱80,000.00
Realization ₱171,500.00 -₱595,000.00 -₱84,700.00
Expenses -₱17,500.00 -₱3,500.00
Payment of Liab -₱200,000.00 -₱200,000.00
Remainder ₱24,000.00 ₱0.00 ₱0.00 -₱8,200.00
Absorb -₱7,800.00
Additional Inv ₱16,000.00 ₱16,000.00
Payment to Partner -₱40,000.00 ₱0.00
₱0.00

3 Cash NCA Liab Boy

Balances ₱70,000.00 ₱595,000.00 ₱200,000.00 ₱80,000.00
Realization ₱126,000.00 -₱595,000.00 -₱93,800.00
Absorb ₱13,800.00
Balance ₱196,000.00 ₱0.00 ₱200,000.00 ₱0.00
Additional Inv ₱40,875.00
Payment of Liab -₱200,000.00 -₱200,000.00
Payment to Partners -₱36,875.00 ₱0.00
₱0.00

II
Kevin Paul Rey Total
Balances ₱600,000.00 ₱100,000.00 ₱36,000.00 ₱736,000.00
Loss on Realization -₱48,000.00 ###
Payment to Partners ₱52,000.00

III
Tito Vic Joey Total
Balances ₱421,500.00 ₱587,500.00 ₱621,000.00
Realizations -₱70,000.00 -₱42,000.00 -₱28,000.00 -₱140,000.00
Payment to Partners ₱351,500.00 ₱545,500.00 ₱593,000.00
IV
Cash NCA Liab MM
Balances ₱50,000.00 ₱320,000.00 ₱120,000.00 ₱90,000.00
Realization ₱0.00 -₱320,000.00 -₱96,000.00
Contribution ₱70,000.00
Absorb ₱6,000.00
₱0.00
Coy Doy
₱105,000.00 ₱280,000.00
-₱105,000.00 -₱175,000.00

₱0.00 ₱105,000.00
-₱105,000.00
₱0.00

Coy Doy
₱105,000.00 ₱280,000.00
-₱127,050.00 -₱211,750.00
-₱5,250.00 -₱8,750.00

-₱27,300.00 ₱59,500.00
₱27,300.00 -₱19,500.00
₱0.00
₱40,000.00
₱0.00

Coy Doy
₱105,000.00 ₱280,000.00
-₱140,700.00 -₱234,500.00
-₱5,175.00 -₱8,625.00
-₱40,875.00 ₱36,875.00
₱40,875.00
₱0.00
-₱36,875.00
₱0.00
NN OO
₱60,000.00 ₱100,000.00
-₱96,000.00 -₱128,000.00
₱70,000.00
I
Cash NCA Rec to Partner Liab Loan fr Partner
Balances ₱18,000.00 ₱307,000.00 ₱30,000.00 ₱53,000.00 ₱20,000.00
Realization, Jan ₱89,000.00 -₱118,000.00
Payment -₱50,000.00 -₱53,000.00
Expenses -₱2,000.00
Payment to Partners -₱45,000.00 -₱20,000.00
Balances ₱10,000.00 ₱189,000.00 ₱30,000.00 ₱0.00 ₱0.00
Realization, Feb -₱4,000.00
Balances ₱6,000.00 ₱189,000.00 ₱30,000.00
Realization, Mar ₱146,000.00 -₱189,000.00
Expenses -₱5,000.00
Balances ₱147,000.00 ₱0.00 ₱30,000.00
Offset -₱30,000.00
Payment to Partners -₱147,000.00 ₱0.00
₱0.00

II
Cash R T
Balances ₱72,000.00 Balances ₱132,000.00 ₱93,000.00
Sale ₱192,000.00 P/L ₱0.50 ₱0.25
Expenses -₱10,800.00 ₱264,000.00 ₱372,000.00
Payment of Liab -₱33,600.00 1st Priority ₱36,000.00
Cash for Dist ₱219,600.00 2nd Priority ₱72,000.00
Rem ₱0.50 ₱0.25
For Dist:
1st Priority ₱36,000.00
2nd Priority ₱72,000.00
Remainder ₱19,800.00 ₱9,900.00
TOTAL ₱19,800.00 ₱117,900.00
Bonus. Answer not in the choices.
AB CD EF Income Safe Payment Schedule
₱118,000.00 ₱90,000.00 ₱74,000.00 AB CD
-₱14,500.00 -₱8,700.00 -₱5,800.00 Balances ₱88,000.00 ₱110,000.00
₱1,500.00 ₱900.00 ₱600.00 P/L ₱0.50 ₱0.30
-₱1,000.00 -₱600.00 -₱400.00 ₱176,000.00 ₱366,666.67
-₱14,600.00 -₱10,400.00 1st priority
₱104,000.00 ₱67,000.00 ₱58,000.00 2nd priority ₱190,666.67
-₱2,000.00 -₱1,200.00 -₱800.00 Remainder
₱102,000.00 ₱65,800.00 ₱57,200.00
-₱21,500.00 -₱12,900.00 -₱8,600.00 ₱57,200.00
-₱2,500.00 -₱1,500.00 -₱1,000.00 ₱0.50 ₱0.30
₱78,000.00 ₱51,400.00 ₱47,600.00 January Distribution
-₱30,000.00 1st priority
-₱48,000.00 -₱51,400.00 -₱47,600.00 2nd priority ₱14,600.00
₱0.00 ₱0.00 ₱0.00 TOTAL ₱0.00 ₱14,600.00

W
₱84,000.00
₱0.25
₱336,000.00

₱72,000.00
₱0.25
₱219,600.00
₱36,000.00
₱72,000.00 ₱144,000.00
₱9,900.00 ₱39,600.00
₱81,900.00
EF TOTAL
₱74,000.00
₱0.20
₱370,000.00
₱3,333.33
₱190,666.67

₱666.67 ₱666.67
₱38,133.33 ₱95,333.33
0.2
₱25,000.00
₱666.67 ₱666.67
₱9,733.33 ₱24,333.33
₱10,400.00
I.
Assets Liabilities Stock Re, Beg
Balances ₱430,000.00 ₱640,000.00 ₱300,000.00 - ₱510,000.00

Beginning She -₱210,000.00

₱430,000.00 ₱520,000.00 Plus G/L -₱168,000.00
₱460,000.00 ₱250,000.00 Ending SHE - ₱378,000.00
₱460,000.00 ₱640,000.00 Ending Liab ₱550,000.00
₱550,000.00 ₱280,000.00 Ending Assets ₱250,000.00
₱568,000.00 ₱610,000.00 Cash ₱0.00
₱2,468,000.00 ₱2,300,000.00
₱168,000.00 Loss

Asset Beg ₱430,000.00 Liab Beg ₱640,000.00

Acquired ₱460,000.00 Assumed ₱280,000.00
Ending -₱250,000.00 Ending -₱550,000.00
Realized ₱640,000.00 Liquidated ₱370,000.00
Selling Price ₱520,000.00 Settlement Price ₱460,000.00
Loss - ₱120,000.00 Loss - ₱90,000.00

II.
₱223,500.00
₱613,500.00
₱426,000.00
2.50E+05 ₱172,000.00
₱78,000.00 Over Asset