lupisan baysa

CHAPTER 1Partnership Formation and Operations

EXERCISESExercise 1 11.a Campos, Capital 14,000

Allowance for Uncollectible Accounts 14,000Goodwill 30,000

Campos, Capital 30,000Accumulated Depreciation 6,000Campos, Capital 6,500

Furniture and Fixtures 12,500Campos, Capital 40,000

Cash 40,0001.b Cash (P83,500 x 1/2) 41,750

Tomas, Capital 41,750To record contributions of Tomas

Req. 2.Campos and Tomas PartnershipStatement of financial Position

July 1, 2008Assets Liabilities & Owners Equity

Cash P41,750 Accounts Payable P90,000Accounts Recl P60,000 Campos, Capital 83,500Less Allowance for

Uncol Accts. 24,000 36,000Tomas, Capital 41,750

Inventory 100,000Furniture 7,500Goodwill 30,000 ________TOTAL ASSETS P215.250

TOTAL LIABILITIES &OWNERS EQUITY P215,250

Exercise 1-21. Cash 90,000

Accounts Receivable 36,000Merchandise Inventory 54,000Equipment 25,000

Allowance for Uncollectible Accounts 2,000Accounts Payable 21,000Notes Payable 18,000Bernal, Capital 164,000

AA 1 - Chapter 1 (2008 edition)page 2

2. Cash 100,000Camino, Capital 100,000

Exercise 1 31. Cash 800,000

Land 540,000Building 900,000

Legaspi, Capital 800,000Sabino, Capital 1,440,000

2. Cash 800,000Land 540,000Building 900,000

Legaspi, Capital 1,120,000Sabino, Capital 1,120,000

Exercise 1 - 41. Income Summary 238,000

Santos, Capital (P238,000 x 260/425) 145,600Abad, Capital (P238,000 x 165/425) 92,400

2. Income Summary 238,000Santos, Capital (P238,000 x 3,125/5,000) 148,750Abad, Capital (P238,000 x 1,875/5,000) 89,250Santos:

Jan. 1 Mar. 31 P260,000 x 3 P780,000Apr. 1 Apr. 30 290,000 x 1 290,000May 1 July 31 360,000 x 3 1,080,000Aug. 1 Dec. 31 320,000 x 5 1,600,000

P3,750,000/12 P312,500Abad:

Jan. 1 May 31 P165,000 x 5 P825,000June 1 Aug. 31 215,000 x 3 645,000Sept.1 Dec. 31 195,000 x 4 780,000

P2,250,000/12 P187,5003. Income Summary 238,000

Santos, Capital 147,750Abad, Capital 90,250

Santos Abad TotalInterest on ave. capital P 18,750 P 11,250 P 30,000Salaries to partners 150,000 100,000 250,000Balance - equally ( 21,000) ( 21,000) (42,000)Net Profit P 147,750 P 90,250 P238 000


4. Income Summary 238,000Santos, Capital 164,840Abad, Capital 73,160

Santos Abad TotalBonus to Santos

25% (P238,000 - B) P 47,600 P 47,600Interest of 6% on excessaverage investment6% (P312,500 - P187,500) 7,500 7,500

Balance - 3:2 109,740 73,160 182,900Net Profit P 164,840 P73,160 P238,000

5. Income Summary 238,000Santos, Capital (P238,000 x 15/25) 142,800Abad, Capital (P238,000 x 10/25) 95,200

Exercise 1 5Sanchez and Gomez

Schedule of Distribution of Net ProfitDecember 31, 2008

Sanchez Gomez Total6% interest on average capital P 6,246 P 14.440 P 20,68610% bonus on net profit after interest 8,331 8,331Salaries 20,000 30,000 50,000Balance 70%, 30% 17,488 7,495 24,983Net Profit P52,065 P51,935 P104,000Computation of average capital:

Sanchez, Capital Gomez, CapitalJan. 1 P81,600 x 3 P 244,800 Jan. 1 P224,000 x 7 P1,568,000Apr. 1 P111,600 x 9 1,004,400 Aug. 1 P264,000 x 5 1,320,000

P1,249,200 P2,888,000Ave. capital (P1,249,200/12) P104,100 Ave. capital (P2,888,000/12) P240,667Computation of bonus: P160,000 x 65%= P104,000 P20,686 x 10% = P8,3312.

Sanchez and GomezStatement of Partners Capital

For the Year Ended December 31, 2008Sanchez Gomez Total

Capital, January 1 P 81,600 P224,000 P305,600Additional investment 30,000 40,000 70,000Net profit 52,065 51,935 104,000Drawings ( 41,600) ( 41,600) ( 83,200)Capital, December 31 P122,065 P274,335 P396,400


3. Sanchez Gomez Total6% interest on average capital P 6,246 P14.440 P 20,68610% bonus on net profit after interest 8,331 8,331Balance Salary ratio 34,083 40,000 74,983Net Profit P48,660 P 55,340 P104,000

Exercise 1-61. Mercado Puzon Total

8% interest on beg capital P 48,000 P 54.000 P102,000Salaries 225,000 112,500 337,500Balance 3:2 ( 38,700) ( 25,800) ( 64,500)Net Profit P234,300 P140,700 P375,000

2. Mercado Puzon Total8% interest on beg capital P 48,000 P 54.000 P102,000Balance Salary ratio 182,000 91,000 273,000Net Profit P230,000 P145,000 P375,000

3. Puzon P375,000 x 2/3 = P150,000; however, minimum guaranteed amount is P160,000Mercado P375,000 P160,000 = P215,000

Exercise 1 7Net profit after salary, interest and bonus P374,000

Interest P200,000 x 10% P20,000Salary P8,000 x 12 96,000 116,000

Net profit before interest and salary P490,000Bonus rate x 25%Amount of bonus to Lirio P122,500

Exercise 1 81. B = .25 x P500,000 = P125,0002. B = .25 x P500,000 = P100,000

1.253. B = .25 (P500,000 - Tax)

T = .35 x P500,000 = P175,000B = .25 (P500,000 P175,000)B = P 81,250

4. B = .25 (P500,000 - B - Tax)B = .25 (P50,0000 - B - P175,000)B = P81,250 - .25BB = P81,250/1.25B = P65,000


Exercise 1 - 91.

Estrella Felipe Garcia Jimenez TotalSalary P40,000 P20,000 P 60,000Bonus 6,000 4,000 10,000*Interest 10,000 9,000 P 4,000 P 9,400 32,400Balance 26,900 26,900 26,900 26,900 107,600Total P82,900 P59,900 P30,900 P36,300 P210,000

*B = 5% (P210,000 B) = P10,0002.

Estrella Felipe Garcia Jimenez TotalSalary P40,000 P20,000 P 60,000Interest 10,000 9,000 P 4,000 P 9,400 32,400Balance ( 43,100) ( 43,100) ( 43,100) ( 43,100) (172,400)Total P 6,900 (P 14,100) (P39,100) (P33,700) (P 80,000)3.

Estrella Felipe Garcia Jimenez TotalInterest P10,000 P 9,000 P 4,000 P 9,400 P 32,400Bonus 6,000 4,000 10,000Salary 25,067 12,533 _______ ________ 37,600*Total P41,067 P25,533 P 4,000 P 9,400 P 80,000

*P37,600 x 4/ 6 = P25,067; P37,600 x 2/ 6 = P12,533Exercise 1-101. Fees Earned 750,000

Joseph, Capital 50,000Luis, Capital 200,000Operating Expenses 100,000Income Summary 500,000

2. Income Summary 500,000Joseph Capital 150,000Luis, Capital 250,000Nicolas, Capital 100,000

Exercise 1 111.

Benito Cabral Duenas TotalCapital balances before payment

of cash P120,000 P100,000 P100,000 P320,000Required capital balances based on

on profit and loss ratio 128,000 112,000 80,000 320,000Cash received (paid) (P 8,000) (P 12,000) P 20,000 -


Journal entry on the partnership booksDuenas, Capital 20,000

Benito, Capital 8,000Cabral, Capital 12,000

2.Benito Cabral Duenas Total

Capital balances before additionalcash investment P120,000 P100,000 P100,000 P320,000

Required capital balances based onlowest possible cash investment* 160,000 140,000 100,000 400,000

Required additional cash investment P 40,000 P 40,000 - P 80,000* P120,000/40% = P300,000; P100,000/35% = P285,174; P100,000/25% = P400,000

Journal entry on the partnership booksCash 80,000

Benito, Capital 40,000Cabral, Capital 40,000

3.Benito Cabral Duenas Total

Capital balances P120,000 P100,000 P100,000 P320,000Required capital 120,000 105,000 75,000 300,000Additional investment(withdrawals) -------- 5,000 (P 25,000) P 20,000Duenas, Capital 25,000

Cash 20,000Cabral, Capital 5,000

Exercise 1 12Enriquez and Flores

Schedule Showing Adjustments in CapitalFor the Year Ended December 31, 2008

Reported net profit P400,000Adjustments:

Equipment purchased charged to expense P200,000Depreciation on equipment ( 20,000)Overstatement of 2008 ending inventory ( 24,000)

P156,000x 65% 101,400

Corrected net profit P501,400


Distribution of 2008 net profitEnriquez Flores Total

Salaries P120,000 P120,000 P240,000Interest 30,000 45,000 75,000Balance 51,000 34,000 85,000

P201,000 P199,000 P400,000Distribution of 2008 corrected net profit

Salaries P120,000 P120,000 P240,000Interest 30,000 45,000 75,000Balance 111,840 74,560 186,400

P261,840 P239,560 P501,400Adjustments P 60,840 P 40,560 P101,4002. Equipment 200,000

Enriquez, Capital 60,840Flores, Capital 40,560Accumulated Depreciation 20,000Inventory 24,000Income Tax Payable 54,600

PROBLEMSProblem 1 11. a. Merchandise, Inventory 60,000

Ruiz, Capital 60,000b. Ruiz, Capital 30,000

Allowance for Uncollectible Accounts 30,000c. Interest Receivable 1,500

Ruiz, Capital 1,500P150,000 x 6% x 2/12 = P1,500

d. Ruiz, Capital 7,500Interest Payable 7,500

P300,000 x 10% x 3/12 = P7,500e. Accumulated Depreciation 180,000

Ruiz, Capital 60,000Furniture and Fixtures 240,000

f. Office Supplies 5,000Ruiz, Capital 5,000

g. Cash 524,500Santos, Capital 524,500


Ruiz and SantosStatement of Financial Position

December 1, 2008Assets

Cash P 764,500Notes Receivable 150,000Accounts Receivable P900,000

Less Allowance for Uncollectible Accounts 90,000 810,000Interest Receivable 1,500Merchandise Inventory 300,000Office Supplies 5,000Furniture and Fixtures 480,000Total Assets P2,511,000

Liabilities and CapitalNotes Payable P300,000Accounts Payable 630,000Interest Payable 7,500Total Liabilities P 937,500Ruiz, Capital P1,049,000Santos, Capital 524,500Total Capital 1,573,500Total Liabilities and Capital P2,511,000Problem 1-21. Cash 518,000

Merchandise Inventory 1,152,000Tomas, Capital 1,670,000

2. Accounts Receivable 1,792,000Merchandise Inventory 256,000Office Equipment 160,000Goodwill 198,000

Allowance for Uncollectible Accounts 160,000Accounts Payable 576,000Vicente, Capital 1,670,000

Tomas and VicenteStatement of Financial Position

June 1, 2008Assets

Cash P 518,000Accounts Receivable P1,792,000

Less Allowance for Uncollectible Accounts 160,000 1,632,000Inventories 1,408,000Office Equipment 160,000Goodwill 198,000Total Assets P3,916,000


Liabilities and CapitalAccounts Payable P 576,000Tomas, Capital P1,670,000Vicente, Capital 1,670,000 3,340,000Total Liabilities and Capital P3,916,000Problem 1 31. Merchandise Inventory 3,000

Goodwill 3,000Accumulated Depreciation 900

Allowance for Uncollectible Accounts 1,000Equipment 2,000Rosas, Capital 3,900

Cash 5,000Accounts Receivable 46,000Merchandise Inventory 108,000Equipment 12,000Furniture and Fixtures 9,000Goodwill 3,000

Allowance for Uncollectible Accounts 4,000Accounts Payable 54,000Perlas, Capital 125,000

2. Cash 5,000Accounts Receivable 46,000Merchandise Inventory 108,000Equipment 12,000Furniture and Fixtures 9,000Goodwill 3,000

Allowance for Uncollectible Accounts 4,000Accounts Payable 54,000Perlas, Capital 125,000

Cash 7,000Accounts Receivable 49,000Merchandise Inventory 75,000Equipment 7,000Goodwill 3,000

Allowance for Uncollectible Accounts 5,000Accounts Payable 36,000Rosas, Capital 100,000

Problem 1 41. Cash 900,000

Inventories 1,500,000Equipment 3,000,000

Notes Payable 1,050,000Serrano, Capital 4,350,000


Cash 600,000Land 6,000,000

Mortgage Payable 1,950,000Torres, Capital 4,650,000

Torres, Capital 150,000Serrano, Capital 150,000

Purchases 900,000Accounts Payable 900,000

Accounts Payable 720,000Cash 720,000

Mortgage Payable 300,000Interest Expense 120,000

Cash 420,000Notes Payable 225,000Interest Expense 75,000

Cash 300,000Accounts Receivable 3,450,000

Sales 3,450,000Cash 3,150,000

Accounts Receivable 3,150,000Selling and General Expenses 870,000

Cash 630,000Accumulated Depreciation 150,000Accrued expenses 90,000

Serrano, Drawing 351,000Torres, Drawing 351,000

Cash 702,000Income Tax 204,750

Income Tax Payable 204,750Inventories, end 600,000Sales 3,450,000

Inventories, beginning 1,500,000Purchases 900,000Selling and General Expenses 870,000Interest Expense 195,000Income Tax 204,750Income Summary 380,250


Income Summary 380,250Serrano, Capital 192,150Torres, Capital 188,100

Serrano Torres TotalInterest on beginning capital P180,000 P180,000 P360,000Salaries 150,000 100,000 250,000Remainder 60%, 40% ( 137,850) ( 91,900) ( 229,750)Net Profit P192,150 P188,100 P380,250

Serrano, Capital 351,000Torres, Capital 351,000

Serrano, Drawing 351,000Torres, Drawing 351,000

Serrano and Torres PartnershipStatement of Recognized Income and Expenses

For the Year Ended December 31, 2008Sales P3,450,000Cost of Goods Sold:

Inventories, beginning P1,500,000Purchases 900,000Cost of Goods Available for Sale P2,400,000Less Inventories, end 600,000 1,800,000

Gross Profit P1,650,000Selling and General Expenses 870,000Operating Income P 780,000Interest Expense 195,000Net Profit before Income Tax P 585,000Income Tax 204,750Net Profit P 380,250

Serrano and Torres PartnershipStatement of Financial Position

December 31, 2008Assets

Current Assets:Cash P1,878,000Accounts Receivable (P3,450,000 P3,150,000) 300,000Inventories 600,000 P 2,778,000

Property, Plant and Equipment:Land P6,000,000Equipment P3,000,000Less Accumulated Depreciation 150,000 2,850,000 8,850,000

Total Assets P11,628,000


LiabilitiesCurrent Liabilities:

Accounts Payable (P900,000 P720,000) P180,000Accrued Expenses 90,000Income Tax Payable 204,750 P 474,750

Long-term Liabilities:Notes Payable (P1,050,000 P225,000) P 825,000Mortgage Payable (P1,950,000 P300,000) 1,650,000 2,475,000

Total Liabilities P 2,949,750Capital

Serrano, Capital P4,341,150Torres, Capital 4,337,100Total Capital

8,678,250Total Liabilities and Capital P11,628,000Problem 1 - 51. P2,700,000 (P200,000 + P1,100,000 + P500,000 + P1,500,000 P600,000 = P2,700,000)2 P2,600,000. (P2,500,000 + P2,700,000) / 2 = P2,600,000Problem 1 61. Income Summary 700,000

Bernabe, Capital 505,800Burgos, Capital 194,200

Bernabe Burgos TotalInterest on beg. capital P 28,800 P 35,200 P 64,000Balance 3:1 477,000 159,000 636,000Net Profit P 505,800 P 194,200 P700 000

2. Income Summary 700,000Bernabe, Capital 284,000Burgos, Capital 416,000

Bernabe Burgos TotalSalaries P 140,000 P 260,000 P400,000Interest on end capital 48,000 60,000 P108,000Balance Equally 96,000 96,000 96,000Net Profit P 284,000 P 416,000 P700 000


Bernabe Burgos TotalSalaries P 90,000 P 170,000 P260,000Interest on average. cap 49,000 50,800 99,800Balance 3:1 255,150 85,050 340,200Net Profit P 394,150 P 305,850 P700 000


Bernabe:Jan. 1 May 31 P360,000 x 5 P1,800,000June 1 Oct. 31 460,000 x 5 2,300,000Nov, 1 Dec. 31 400,000 x 2 800,000

P4,900,000/12 P408,333Burgos:

Jan. 1 June 30 P440,000 x 6 P2,640,000July 1 Oct. 31 360,000 x 4 1,440,000Nov.1 Dec. 31 500,000 x 2 1,000,000

P5,080,000/12 P423,3334. Income Summary 700,000

Bernabe, Capital 267,567Burgos, Capital 432,433

Bernabe Burgos TotalSalaries P 100,000 P 200,000 P300,000Interest on average. cap 40,833 42,333 83,166Balance 40%, 60% 126,734 190,100 316,834Net Profit P 267,567 P 432,433 P700 000


Bernabe Burgos TotalSalaries P 100,000 P 100,000 P220,000Interest on beg. cap 28,800 35,200 64,000Bonus 43,600 43,600Balance 2:3 156,960 235,440 392,400Net Profit P 329,360 P 370,640 P700 000

B = 10%(NI S I)Problem 1 7

Sandy Tammy Manny Total1. 6% interest on capital P 16,800 P 12,000 P 7,200 P 36,000

Salaries 48,000 40,000 88,000Balance 5:3:2 ( 74,500) ( 44,700) ( 29,800) (149,000)Net Profit P(57,700) P 15,300 P 17,400 P(25,000)

2. 6% interest on capital P 16,800 P 12,000 P 7,200 P 36,000Salaries 48,000 40,000 88,000Balance 5:3:2 ( 32,000) ( 19,200) ( 12,800) ( 64,000)Net Profit P( 15,200) P 40,800 P 34,400 P 60,000

3. 6% interest on capital P 16,800 P 12,000 P 7,200 P 36,000Salaries 48,000 40,000 88,000Bonus 13,500 13,500Balance 5:3:2 56,250 33,750 22,500 112,500Net Profit P 73,050 P107,250 P 69,700 P250,000


B = (P250,000 P36,000 P88,000 P72,000)25% = P13,500Problem 1 - 81. Delmar Pilar Total

5% interest on capital P 2,500 P 1,500 P 4,000Salaries 12,000 8,000 20,00020% bonus on net profit 22,100 22,100Balance capital ratio 40,250 24,150 64,400Net Profit P76,850 P33,650 P110,500

2. Sales 480,000Cost of Goods Sold 210,000Operating Expenses 100,000Income Taxes 59,500Income Summary 110,500

Income Summary 110,500Delmar, Capital 76,850Pilar, Capital 33,650

Delmar, Capital 6,000Pilar, Capital 10,000

Delmar, Drawing 6,000Pilar, Drawing 10,000

Delmar and Pilar CompanyStatement of Changes in Partners CapitalFor the Year Ended December 31, 2008

Delmar Pilar TotalCapital balances, January 1, 2008 P 50,000 P30,000 P 80,000Add Distribution of net income for 2008:

Interests P 2,500 P 1,500 P 4,000Salaries 12,000 8,000 20,000Bonus 22,100 22,100Balance - capital ratio 40,250 24,150 64,400Total share in net profit P 76,850 P33,650 P110,500

Total P126,850 P63,650 P190,500Less Drawings 6,000 10,000 16,000Capital balances, December 31, 2008 P120,850 P53,650 P174,500


Problem 1 - 9Ramos, Gonzales and Martinez

Statement of Changes in Partners CapitalFor Three Years Ended December 31, 2008

Ramos Gonzales Martinez TotalCapital, January 1, 2006 P 80,000 P 48,000 P 40,000 P 168,000Distribution of net loss (Sch. 1) ( 2,000) ( 1,520) ( 2,000) ( 5,520)Withdrawals (12,000) (14,480) (16,000) (42,480)Capital, December 31, 2006 P 66,000 P 32,000 P 22,000 P120,000Distribution of net profit (Sch. 2) 7,960 8,320 7,720 24,000Withdrawals (13,960) (16,320) (17,720) (48,000)Capital, December 31, 2007 P 60,000 P 24,000 P12,000 P 96,000Distribution of net profit (Sch. 3) 21,840 18,840 18,120 58,800Withdrawals (20,400) (24,000) (21,200) (65,600)Capital, December 31, 2008 P 61,440 P 18,840 P 8,920 P 89,200

Schedule 1 - Distribution of 2006 net lossRamos Gonzales Martinez Total

Salaries to partners P 9,600 P 12,000 P 12,000 P 33,600Interest of 6% on beg. Capital 4,800 2,880 2,400 10,080Balance equally (16,400) (16,400) (16,400) P 49,200Net income P( 2,000) P( 1,520) P( 2,000) P( 5,520)

Schedule 2 - Distribution of 2007 net profitRamos Gonzales Martinez Total

Salaries to partners P 9,600 P 12,000 P 12,000 P 33,600Interest of 6% on beg. Capital 3,960 1,920 1,320 7,200Balance equally ( 5,600) ( 5,600) ( 5,600) (16,800)Net income P 7,960 P 8,320 P 7,720 P 24,000

Schedule 3 - Distribution of 2008 net profitRamos Gonzales Martinez Total

Salaries to partners P 9,600 P 12,000 P 12,000 P 33,600Interest of 6% on beg. Capital 3,600 1,440 720 5,760Bonus - 20% (P58,800 - P39,360 - B) 3,240 3,240Balance equally 5,400 5,400 5,400 16,200Net income 21,840 18,840 18,120 58,800


Problem 1 -10Robles, Bernal and Reyes

Statement of Partners CapitalFor the Year Ended December 31, 2008

Robles Bernal Reyes TotalCapital balances before closingthe nominal accounts P120,000 P ( 2,000) P20,000 P138,000

Add Distribution of net profit:Drawing allowance 20,000 14,000 10,000 44,000Interest on average capital 7,200 240 560 8,000Balance - 60%, 30%, 10% 58,800 29,400 9,800 98,000

Total P206,000 P41,640 P40,360 P288,000Deduct Cash distribution 122,720 26,480 149,200Capital, December 31, 2008 P 83,280 P41,640 P13,880 P138,800

P206,000 / 60% = P343,333; P40,360 / 10% = P403,600P41,640 / 30% = P138,800 (required total capital)

Problem 1 - 11Chavez, Roman, and Valdez

Statement of Changes in Partners CapitalJanuary 1 to November 1, 2008ChavezLoan

ChavezCapital

RomanCapital

ValdezCapital Total

Beginning balances P 80,000 P 80,000 P 80,000 P240,000Loan from Chavez P 60,000 60,000Transfer of equipment to Valdez ( 16,000) ( 16,000)Balances P 60,000 P 80,000 P 80,000 P 64,000 P284,000Distribution of loss on realization*Salary to Valdez 24,000 24,000Int. to Chavez for 7 months 2,100 2,100Balance divided equally* ( 76,700) ( 76,700) ( 76,700) ( 230,100)

Balances P 60,000 P 5,400 P 3,300 P 11,300 P 80,000Dist. of cash in final settlement 60,000 5,400 3,300 11,300 80,000

*Total partners equity as shown above P284,000Less Cash available for distribution 80,000Loss on realization P204,000Less Salary and interest 26,100Total loss to be divided equally P230,100


Problem 1 - 12Canlas, David, Estrella and Fajardo

Statement of Changes in Partners Capital AccountsFor the Year Ended December 31, 2008

Canlas David Estrella Fajardo TotalInvestment P309,000 P159,000 P327,000 ------- P 795,000Net profit 237,700 186,230 140,310 P 24,010 588,250Total P546,700 P345,230 P467,310 P 24,010 P1,383,250Less: Excess rent (P225 x 6) P 13,500 P 13,500

Withdrawals P 78,000 P 66,000 87,000 P 37,500 268,500Uncollectible accounts 18,000 6,750 24,750

P 96,000 P 72,750 P100,500 P 37,500 P 306,750Capital, December 31 P450,700 P272,480 P366,810 P(13,490) P1,076,500

Supporting computations:Revenue from fees P 900,000Expenses:

Total expenses, excluding depreciation and uncollectibleaccounts (P290,000 - P13,500) P 276,500

Depreciation [(P195,000 x 10%) + (P75,000 x 5%) 23,250Doubtful accounts (P24,000 x 50%) 12,000 311,750

Net profit P588,250Distribution of net income

Canlas David Estrella Fajardo Total20% of gross fees from respective

clients P 66,000 P 36,000 P 33,000 P135,00020% of fees after April 1 after

expenses but before bad debts P24,010* 24,010Balance -Canlas-40%, David-35%,

Estrella-25% 171,700 150,230 107,310 429,240Total P237,700 P186,230 P140,310 P24,010 P588,250

After April 1Revenues P 180,000Expenses before uncollectible accounts (P276,500 + P23,250) x 180 / 900 59,950

P120,05020%

Share of Fajardo P 24,010Problem 1-131. Equipment 13,500

Accumulated Depreciation 1,350Profit and Loss 12,150


2. Profit and Loss 4,375Interest Payable 4,375

P87,500 x 6% x 10/12 = P4,3753. Profit and Loss 159,025

Abaya, Capital 63,700Reyes, Capital 95,505

Abaya Reyes TotalSalaries P 39,000 P 58,500 P 97,500Bonus [25% x (NI B S) ] 12,305 12,305Balance equally 24,610 24,610 49,220Total P 63,610 P 95,415 P159,025

4. Abaya, Capital 36,000Reyes, Capital 62,500

Abaya, Drawing 36,000Reyes, Drawing 62,500

Problem 1-141. Jaime = 5/10 x 80% = 40% Soriano = 2/10 x 80% = 16%

Madrid = 3/10 x 80% = 24% Matias = 20%2. Corrected net income = P250,000 (P12,000 P31,000 P20,000 + P15,000 + P9,000 x

65%) = P240,250Jaime = P240,250 x 40% = P96,100 Soriano = P240,250 x 16% = P38,440Madrid = P240,250 x 24% = P57,660 Matias = P240,250 x 20% = P48,050

MULTIPLE CHOICE1. D2. D3. A4. C

TotalAbena(60%)

Buendia(40%)

Abena MV Cost (P90,000 P60,000) P30,000 P18,000 P12,000Buendia MV Cost (P60,000 P70,000) ( 10,000) ( 6,000) ( 4,000)Actual P20,000 P12,000 P 8,000Inequity ( 20,000) ( 30,000) 10,000

P 0 (P18,000) P18,0005. A6. C7. B8. B Molinas contribution (P190,000 P60,000) P130,000

Nuevos tangible contribution 100,000Total capital contributions P230,000


x 60%Capital credit of Molina P 138,000Contribution of Molina 130,000Bonus to Molina P 8,000

9. Roxas = P596,250 - P5,550 = P590,700Bernardo = P335,000 - P4,050 - P9,000 = P321,950

10. Roxas = (P590,700 + P321,950) x 60% = P547,590Bernardo = (P590,700 + P321,950) x 40% = P365,060

11. Roxas = P650,000 P590,700 = P59,300Bernardo = P400,000 P321,950 = P78,050

12. Bruno = P150,000 - P90,000 = P60,00013. Total assets = Total liab. + Total capital

= P25,000 + P300,000 = P325,00014. Cash contribution = (P248,850 x 1/3) P50,000 = P32,95015 Total capital = (P158,400 + P17,500 P5,000 P5,000) 2/3 = P248,85016. Required capital of Esteban (P287,500 x 60%) P172,500

Non-cash contributions of Esteban (P125,000 P30,000) 95,000Cash contribution P 77,500

17. Contribution of Diaz P115,000Contribution of Esteban (P125,000 P30,000 + P50,000) 145,000Total partnership capital P260,000

18. C P115,000 + P95,000 = P210,000/2 P105,00019. A Net increase (decrease) in capital (P120,000)

Add Withdrawals 260,000Total (P140,000)Less Additional investments 50,000Profit share P 90,000Profit share percentage 30%Total partnership net profit P300,000

20. C21. B22. C Net profit (exclusive of salary, interest and bonus) P 93,500

Salary (P2,000 x 12) 24,000Interest (P50,000 x 5%) 2,500Net profit after deduction of bonus P120,000Bonus = .20 (P120,000 + Bonus) = P24,000 + .20 Bonus

= P24,000/.80 = P30,000


23. D24. C Alberto Bustos Cancio Total

10% x P1,000,000 P 100,000 P 100,00020% x P1,500,000 300,000 300,0005% (P1M P400,000) P30,000 P30,000 60,000Balance equally 680,000 680,000 680,000 2,040,000Net income P1,080,000

25. A Ramos Campos Ocampo TotalInterest P24,000 P12,000 P 8,000 P 44,000Salaries 60,000 40,000 100,000Balance equally ( 70,000) (70,000) ( 70,000) ( 210,000)

P14,00026. C Sison Torres Velasco Total

Bonus - 10%(P44,000 - B) P 4,000 P 4,000Interest on capitalin excess of P100,000 P 1,000 1,000

Salaries to partners P10,000 12,000 22,000Balance - 4:4:2 6,800 6,800 3,400 17,000

P19,400 P44,00027. B Sison Torres Velasco Total


Salaries to partners P10,000 12,000 22,000Balance - 4:4:2 (1,200) (1,200) (600) (3,000)

P13,400 P22,00028. D Sison Torres Velasco Total


Balance Salary ratio P8,636 10,364 19,000P12,364 P22,000

29. A Average capital of Tamayo Average capital of VidalP100,000 x 6 = P 600,000 P225,000 x 9 = P2,025,000160,000 x 6 = 960,000 155,000 x 3 = 465,000

P1,560,000/12 P2,490,000/12P130,000 P207,500

Average capital of Banson - P150,000Total int. on ave. capital= (P130,000 + P207,500 + P150,000) 10%

= P48,750


30. D Interest on ave. capital P 48,750Salaries to partners 144,000Balance - divided equally 9,000

P 201,75031. B Total capital before net income

(P475,000 + P60,000 P70,000) P465,000Add Net profit 201,750Total capital, Dec. 31, 2008 P666,750

32. D Andal Briones Camba TotalInt. on average capital P 47,250 P 23,865 P 16,235 P 87,350Salaries to partners 122,325 82,625 204,950Balance - equally (139,308) (139,308) (139,308) (417,924)Net increase (decrease) P 30,267 P(115,443) P( 40,448) P(125,624)

33. C Net income = Net sales - CGS - Depr. - Oper. exp. Others)= P228,000 - P123,000 - P7,500 - P58,100 x 65% P25,610

Mariano Lucas totalSalary to partner for 10 mos. P10,000 P 10,000Bonus to managing partner 1,561 1,561Balance based on orig. cap. 8,781 P 5,268 14,049TOTAL share in profit P 20,342 P 5,268 P 25,610

34. A TOTAL share in profit P 20,342 P 5,268 P 25,610Add Capital, beginning 125,000 75,000 200,000TOTAL P145,342 P 80,268 P 225,610Less Withdrawals 20,000 30,000 50,000Capital, end P125,342 P 50,268 P 175,610

35. D Belen Lorna Ursula Edna Total36. A Interest P 5,000.00 P 2,500.00 P 2,500.00 P2,000.00 P12,000.0037. A Salaries 10,000.00 6,000.00 16,000.00

Balance 10,000.00 10,000.00 6,666.67 6,666.67 33,333.34Addl profitfor Edna ________ ________ _________ 3,333.33 3,333.33

Net profit P25,000.00 P18,500.00 P9,166.67 P12,000.00 P64,666.6738. B Puno Quirino Romero Total

Salaries P40,000 P36,000 P13,650 P 89,650Bonus 13,000 13,000Interest 1,000 750 4,600 6,350Balance 7,000 7,000 7,000 21,000Total P61,000 P43,750 P25,200 P130,000


Computation of average capital:Puno, capital

Jan. 1 P10,000 x 3 P 30,000Apr 1 - 9,000 x 3 27,000July 1 - 11,000 x 3 33,000Oct. 1 - 10,000 x 3 30,000

P120,000 / 12 P10,000Quirino, capital

Jan. 1 P 6,000 x 6 P 36,000July 1 - 10,000 x 3 30,000Oct. 1 - 8,000 x 3 24,000

P 90,000 / 12 P 7,500Romero, capitalJan. 1 P40,000 x 3 P120,000Apr. 1 - 38,000 x 3 114,000July 1 - 53,000 x 6 318,000

P552,00 / 12 P46,000Let X = Net IncomeP40,000 + 10% X + P1,000 + 1/3 (X P89,650 10% X P6,350 = P61,000P40,000 + 10% X + P1,000 + 1/3 (90% X P96,000) = P61,000P40,000 + 10% X + P1,000 + 30% X P32,000 = P61,00010% X + 30% X = P61,000 P40,000 P1,000 + P32,00040% X = P52,000

X = P130,00039. D Legarda- 5/10 x 80% = 40% Sotto - 2/10 x 80% = 16%

Madrigal-3/10 x 80% = 24% Pimentel - 20%40. C Share of Legarda = P25,000 ( P1,200 - P3,100 - P2,000 + P1,500 + P

900 x 65%) = P24,025 x 40% = P9,61041. C Serrano Toledo

2008 Net income(P50,000 P8,000) P42,000Salary to Serrano ( 36,000) P36,000Remainder P 6,000Divided equally ( 6,000) 3,000 P 3,000Understatement in 2007 NI P8,000Divided 60:40 ( 8,000) 4,800 3,200Income allocation P43,800 P 6,200

1CHAPTER 2Partnership Dissolution

EXERCISESExercise 2 11. Sales, Capital 140,000

Rosales, Capital 140,0002. P280,000 + P320,000 + P200,000 = P800,000Exercise 2 21. Total capital (P3,000,000 / 80%) P3,750,000

Capital interest of Fidel x 20%Cash to be contributed by Fidel P 750,000

2. Cash 750,000Fidel, Capital 750,000

Exercise 2 31.

Centeno, Capital 40,000Corales, Capital 40,000

2.Other Assets 80,000

Cortes, Capital 50,000Centeno, Capital 20,000Claudio, Capital 10,000P140,000/ = P560,000 (P200,000 + P 160,000 + P120,000)

Cortes, Capital P200,000 + P50,000 x 1/4 62,500Centeno, Capital P160,000 + P20,000 x 1/4 45,000Claudio, Capital P120,000 + P10,000 x 1/4 32,500

Corales, Capital 140,0003.

Cash 230,000Cortez, Capital 32,812Centeno, Capital 13,125Claudio, Capital 6,563Corales, Capital 177,500

AC CC Bonus_old (3/4) P532,500 P480,000 P52,500new (1/4) 177500 230,000 (52,500)

P710,000 P710,000 P---0---


Exercise 2 41.

Conde, Capital 90,000Cuenco, Capital 60,000

Catral, Capital 150,0002.

Other Assets 360,000Conde, Capital 270,000Cuenco, Capital 90,000

Conde, Capital P270,000 + 270,000 x 1/3 180,000Cuenco, Capital P180,000 + P90,000 x 1/3 90,000

Catral, Capital 270,0003.

Cash 270,000Conde, Capital 67,500Cuenco, Capital 22,500Catral, Capital 180,000

AC CC Bonus_old (3/4) P540,000 P450,000 P90,000new (1/4) 180,000 270,000 (90,000)

P720,000 P720,000 P---0---4.

Cash 270,000Other Assets 360,000

Conde, Capital 270,000Cuenco, Capital 90,000Catral, Capital 270,000

AC CC Asset Reold (3/4) P 810,000 P450,000 P360,000new (1/4) 270,000 270,000

P1,080,000 P720,000 P360,0005.

Cash 270,000Conde, Capital 67,500Cuenco, Capital 22,500

Catral, Capital 360,000Exercise 2-51a. Bonus Method

Cash 180,000Alba, Capital 6,000Medel, Capital 9,000

Almeda, Capital 195,000AC CC Bonus_

old (3/4) P585,000 P600,000 P(15,000)new (1/4) 195,000 180,000 15,000

P780,000 P780,000 P---0---


1b. Revaluation of Assets Method (AC = P180,000 1/4 = P720,000)Alba, Capital (P60,000 x 40%) 24,000Medel, Capital (P60,000 x 60%) 36,000

Other Assets (P780,000 - P720,000) 60,000To record revaluation of assets

Cash 180,000Almeda, Capital 180,000

2. Alba Medel AlmedaBalances under the bonus method P194,000 P391,000 P195,000Balances under the asset rev. method P200,000 P400,000 P200,000Additional depreciation ( 6,666) ( 6,667) ( 6,667)Balances after depreciation P193,334 P393,333 P193,333Net advantage to Medel using the asset revaluation method P 2,333

Exercise 2 - 61. Garces, Capital 60,000

Kalaw, Capital 60,000P120,000 x 1/2 = P60,000

2. Cash 60,000Other Assets (P400,000 P320,000) 80,000

Kalaw, Capital 40,000Garces, Capital (P100,000 x 3/8) 37,500Hilario, Capital (P100,000 x 3/8) 37,500Juan, Capital (P100,000 x 2/8) 25,000

Total agreed capital P400,000Total capital contribution 320,000Asset revaluation P 80,000Interest acquired from Garces P 60,000Cash invested in the partnership 60,000Total P 120,000Capital credit of Kalaw 100,000Bonus to old partners P 20,000

Exercise 2 7Bonus method

Sabado Galman Estacio TotalCapital before admission of Estacio P1,000,000 P800,000 P1,800,000Contribution of Estacio P500,000 500,000Bonus to old partners 24,000 16,000 ( 40,000)Capital after admission of Estacio P1,024,000 P816,000 P460,000 P2,300,000


Asset Revaluation methodSabado Galman Estacio Total

Capital before admission of Estacio P1,000,000 P800,000 P1,800,000Contribution of Estacio P500,000 500,000Adjustment of fixed assets to fair value 120,000 80,000 200,000Capital after admission of Estacio P1,120,000 P880,000 P500,000 P2,500,000Exercise 2 81. Bonus method

Noble Calma Reyes Naval TotalCapital balances before admissionof new partners P64,000 P136,000 P200,000

Contributions of new partners P110,000 P120,000 230,000Bonus to old partners 10,950 25,550 ( 24,000) ( 12,500)Capital balances after admissionof new partners P74,950 P161,550 P86,000 P107,500 P430,000

Cash 130,000Equipment 100,000

Noble, Capital 10,950Calma, Capital 25,550Reyes, Capital 86,000Naval, Capital 107,500

2. Asset Revaluation methodNoble Calma Reyes Naval Total

Capital balances before admissionof new partners P64,000 P136,000 P200,000

Adjustment of assets to FV 9,000 21,000 30,000Contributions of new partners P110,000 P120,000 230,000Capital balances after admissionof new partners P73,000 P157,000 P110,000 P120,000 P460,000

Cash 130,000Equipment 84,000Inventory 14,000Land 80,000

Building 48,000Noble, Capital 9,000Calma, Capital 21,000Reyes, Capital 110,000Naval, Capital 120,000

Exercise 2 - 91a. Bonus Method

Songco, Capital 200,000Bueno, Capital 60,000Manzano, Capital 40,000

Cash/Payable to Songco 300,000


1b. Asset Revaluation MethodSongco, Capital 200,000Other Assets (P10,000 1/6) 600,000

Bueno, Capital (P50,000 x 3/5) 300,000Manzano, Capital (P50,000 x 2/5) 200,000Cash/ Payable to Songco 300,000

2. The bonus method will be preferred by ManzanoBonus Method Asset Rev

Capital of Manzano after retirement P260,000 P500,000Additional depreciation 300,000Capital of Manzano after additional depreciation P260,000 P200,000Net advantage to Manzano with the use of the bonusmethod

P60,000

Exercise 2 101.

Delfin, Capital 400,000Damian, Capital 200,000Dencio, Capital 200,000

2.Delfin, Capital 400,000

Cash 320,000Damian, Capital 40,000Dencio, Capital 40,000

3.Other Assets 180,000Delfin, Capital 400,000

Cash 460,000Damian, Capital 60,000Dencio, Capital 60,000P460,000 P400,000 = P60,000/ 1/3 = P180,000

Exercise 2 111. Guzman, Capital January 1 P100,000

Drawing (16,000)Share in net profit 24,000Interest of Guzman upon retirement P108,000

Other Assets 40,000Guzman, Capital 108,000

Cash 120,000Jorge, Capital 12,000Lopez, Capital 16,000P120,000 P108,000 = P12,000/ 30% = P40,000


2.Guzman, Capital 108,000Jorge, Capital 5,143Lopez, Capital 6,857

Cash 120,000Exercise 2 121. Building 200,000

Villa, Capital 60,000Belen, Capital 40,000Marcos, Capital 80,000Cordero, Capital 20,000

Belen, Capital 140,000Cash 140,000

2. Villa, Capital 15,000Belen, Capital 100,000Marcos, Capital 20,000Cordero, Capital 5,000

Cash 140,000

Exercise 2 - 131. Galang, Capital 12,000

Henio, Capital 8,000Israel, Capital 140,000

Cash 160,0002. Israel, Capital 140,000

Galang, Capital 140,0003. Israel, Capital 140,000

Cash 130,000Galang, Capital 6,000Henio, Capital 4,000

4. Other Assets 48,000Israel, Capital 140,000

Cash 148,000Galang, Capital 24,000Henio, Capital 16,000

5. Israel, Capital 140 000Galang, Capital 60,000Henio, Capital 40,000

Cash 120,000Other Assets 120,000


6. Israel, Capital 140,000Henio, Capital 140,000

PROBLEMSProblem 2 - 11. Locsin, Capital (P240,000 x 1/4) 60,000

Montes, Capital (P120,000 x 1/4) 30,000Nava, Capital 90,000

2. Locsin, Capital (P240,000 x 1/3) 80,000Montes, Capital (P120,000 x 1/3) 40,000

Nava, Capital 120,0003. Other Assets 180,000

Locsin, Capital (P180,000 x 3/4) 135,000Montes, Capital (P180,000 x 1/4) 45,000P540,000 P360,000 = P180,000

Locsin, Capital [(P240,000 + P135,000) 1/3] 125,000Montes, Capital [(P120,000 + P45,000) 1/3] 55,000Nava, Capital 180,000

4. Cash 180,000Locsin, Capital (P90,000 x 3/4) 67,500Montes, Capital (P90,000 x 1/4) 22,500

Nava, Capital 270,000AC CC Bonus

old (1/2) 270,000 360,000 (90,000)new (1/2) 270,000 180,000 90,000

540,000 540,000 -----

5. Cash 180,000Other Assets 180,000

Nava, Capital 180,000Locsin, Capital (P60,000 x 3/4) 135,000Montes, Capital (P60,000 x 1/4) 45,000

AC CC Asset Revold (3/4) 540,000 360,000 180,000new (1/4) 180,000 180,000 -----

720,000* 540,000 180,000*180,000 1/4 = 720,000

6. Cash 240,000Nava, Capital 180,000Locsin, Capital (P60,000 x 3/4) 45,000Montes, Capital (P60,000 x 1/4) 15,000


7. Cash 240,000Locsin, Capital 54,000Montes, Capital 18,000

Nava, Capital 312,0008. Cash 150,000

Locsin, Capital (P22,500 x 3/4) 16,875Montes, Capital (P22,500 x 1/4) 5,625Nava, Capital (P510,000 x 1/4) 127,500

9. Cash 165,000Other Assetsl (P660,000 P525,000) 135,000

Locsin, Capital (P135,000 x 3/4) 101,250Montes, Capital (P135,000 x 1/4) 33,750Nava, Capital (P660,000 x 1/4) 165,000

10 Cash 144,000Locsin, Capital (P24,000 x 3/4) 18,000Montes, Capital (P24,000 x 1/4) 6,000

Nava, Capital (P504,000 x 1/3) 168,000Problem 2 - 21.a. Ponce, Capital (P300,000 x ) 150,000

Anton, Capital 150,000b. Ponce, Capital (P300,000 x ) 75,000

Salva, Capital (P200,000 x ) 50,000Victa, Capital (P100,000 x ) 25,000

Anton, Capital 150,000c. Cash 220,000

Ponce, Capital 7,500Salva, Capital 4,500Victa, Capital 3,000Anton, Capital 205,000

AC CC BonusPonce P307,500 P300,000 P 7,500Salva 204,500 200,000 4,500Victa 103,000 100,000 3,000Anton 205,000 220,000 ( 15,000)

P820,000 P820,000 ------2.a. Other Assets 360,000

Ponce, Capital 180,000Salva, Capital 108,000Victa, Capital 72,000

P960,000 P600,000 = P360,000


Ponce, Capital 240,000Anton, Capital 240,000

b. Other Assets 120,000Ponce, Capital 60,000Salva, Capital 36,000Victa, Capital 24,000P180,000/ 25% = P720,000 P600,000 = P120,000


Anton, Capital 180,000c. Other Assets 60,000


P220,000/ 25% = P880,000 P820,000 = P60,000Cash 220,000

Anton, Capital 220,000Problem 2-31.a Cash 90,000

Cabral, Capital 22,500Corpus, Capital 18,000Carlos, Capital 4,500

Other Assets 45,000Camus, Capital 90,000

AC CC Asset Revold (3/4) 630,000 675,000 (45,000)new (1/4) 90,000 90,000 -----

720,000* 765,000 (45,000)

b. Cash 90,000Cabral, Capital 2,813Corpus, Capital 2,250Carlos, Capital 562

Camus, Capital 95,625AC CC Bonus

old (1/2) 669,375 675,000 (5,625)new (1/2) 95,625 90,000 5,625

765,000 765,000 -----

2.a Cabral, Capital 40,500Corpus, Capital 27,000Carlos, Capital 16,875

Camus, Capital 84,375


b. Other Assets 45,000Cabral, Capital 22,500Corpus, Capital 18,000Carlos, Capital 4,500

P90,000/ 1/8 = P720,000 P675,000 = P45,000Cabral, Capital 43,312Corpus, Capital 29,250Carlos, Capital 17,438

Camus, Capital 90,000Problem 2 - 41. a. Inventories 5,625

Accumulated Depreciation Equipment 7,500Allowance for Doubtful Accounts 3,450Accrued Liabilities 2,925Roces, Capital (P6,750 x 60/100) 4,050Lapuz, Capital (P6,750 x 40/100) 2,700

b. Cash 46,875Doria, Capital 46,875

P187,500/80% = P234,375 x 20% = P46,875c. Lapuz, Capital 13,388

Roces, Capital 13,388Roces = (P234,375 x 50%) P103,800 = P13,388Lapuz = (P234,375 x 30%) - P83,400 = (P13,388)

2.Roces, Lapuz and DoriaStatement of Financial Position

April 1, 2008ASSETS LIABILITIES and PARTNERS CAPITAL

Cash P 82,875 Payables P66,750Receivables P69,000 Accrued Liabilities 2,925

Less Allow. for DA 3,450 65,550 Roces, Capital P117,188Inventories 129,375 Lapuz, Capital 70,312Equipment P52,500 Doria, Capital 46,875 234,375

Less Acc. Depr. 26,250 26,250 ________TOTAL LIABILITIES and

TOTAL ASSETS P304,050 PARTNERS CAPITAL P304,050Problem 2 -5

Roldan Angeles Lazaro Moreno TotalBal.before admission of Moreno P150,000 P180,000 P300,000 P630,000Transfer of 1/6 int. to Moreno (30,000) P 30,000Investment of Moreno 150,000 150,000Asset revaluation 6,000 6,000 8,000 20,000Bonus to old partners 6,000 6,000 8,000 (20,000)Capital balances after admissionof Moreno P162,000 P162,000 P316,000 P160,000 P800,000


2. Roldan 30% x 75% = 22.5%Angeles 30% x 75% = 22.5%Lazaro 40% x 75% = 30%Moreno 25%

Problem 2 61. Lazo, Capital 19,000

Madrid, Capital 19.000Buildings 8,000Allowance for Doubtful Accounts 20,000Allowance for Valuation of Investments 10,000

Lazo, Capital 60,000Madrid, Capital 45,333

Nuguid, Capital 105,333(P200,000 P19,000 + P19,000 P20,000) 1/3 = P60,000(P150,000 P19,000 + P19,000 P14,000) 1/3 = P45,333

2. Lazo Madrid TotalCapital balances before admission of Nuguid P199,000 P155,000 P354,000Revaluation of assets ( 19,000) ( 19,000) ( 39,000)Capital balances after revaluation P180,000 P136,000 P316,000Fraction of interest transferred to Nuguid x 1/3 x 1/3 x 1/3Interest transferred to Nuguid P 60,000 P 45,333 P105,333Gain on transfer 31,138 23,529 54,667Cash distribution to partners P 91,138 P 68,862 P160,000

3. Lazo Madrid NuguidCapital balances before admission of Nuguid P199,000 P155,000Revaluation of assets ( 19,000) ( 19,000)Interest transferred to Nuguid ( 60,000) ( 45,333) 105,333Balances P120,000 P 90,667 P105,333Share in net profit 18,000 18,000 18,000Drawings ( 15,000) ( 12,000) ( 28,000)Capital balances, December 31, 2008 P123,000 P 96,667 P 95,333

4. Cash 66,000Accounts Receivable 40,000Investments 20,000

Accounts Payable 41,000Osorio, Capital 85,000

Lazo, Capital 5,000Madrid, Capital 5,000Nuguid, Capital 5,000

Osorio, Capital 15,000P315,000 + P85,000 = P400,000 x 1/4 P100,000 P85,000 = P15,000


Problem 2 - 71. Montero, Capital 100,000

Concio, Capital (P8,000 x 3/5) 4,800Domino, Capital (P8,000 x 2/5) 3,200

Cash 108,0002. Montero, Capital 100,000

Concio, Capital (P10,000 x 3/5) 6,000Domino, Capital (P10,000 x 2/5) 4,000Cash 90,000

3. Montero, Capital 100,000Concio, Capital (P60,000 x 3/6) 30,000Domino, Capital (P60,000 x 2/6) 20,000

Cash 90,000Other Assets (P10,000 1/6) 60,000

4. Montero, Capital (P6,000 x 1/6) 1,000Concio, Capital (P6,000 x 3/6) 3,000Domino, Capital (P6,000 x 2/6) 2,000

Equipment [(P60,000 x 40%) P18,000] 6,000Montero, Capital (P100,000 P1,000) 99,000

Equipment 18,000Cash 81,000

Problem 2-81. Damaso Dangwa Datu

Capital, January 1, 2008 P120,000 P 70,000 P 80,000Share in net loss ( 9,600) ( 6,400) ( 16,000)Drawings ( 24,000) ( 24,000) ( 24,000)Capital balances, December 31, 2008 P 86,400 P 39,600 P 40,000

2. Dangwa, Capital 39,600Dmaso, Capital 14,400Datu, Capital 24,000

Cash 30,000Inventory 48,000P39,600 P30,000 = P9,600 / 20% = P48,000

3. a Other Assets 42,000Dangwa, Capital 39,600

Cash 48,000Damaso, Capital 12,600Datu, Capital 21,000

P48,000 P39,600 = P8,400/ 20% = P42,000


Dangwa, Capital 39,600Damaso, Capital 3,150Datu, Capital 5,250

Cash 48,000Problem 2 - 91. Cash 120,000

Luna, Capital 2,000Matias, Capital 2,000Noble, Capital 2,000

Guzman, Capital 126,000AC CC Bonus

Old P294,000 P300,000 P( 6,000)New 126,000 120,000 6,000

P420,000 P420,000 ----2. Cash 60,000

Luna, Capital 20,000Matias, Capital 20,000Noble, Capital 20,000

Other Assets 60,000Guzman, Capital 60,000

AC CC Asset RevOld P240,000 P300,000 (P60,000)New 60,000 60,000

P300,000 P360,000 (P60,000)3. Matias, Capital 36,000

Guzman, Capital 36,000P120,000 x 30% = P36,000

4. Luna, Capital 80,000Matias, Capital 8,000Noble, Capital 8,000

Cash 96,0005. Luna, Capital 80,000

David, Capital 80,000

6. Luna, Capital 80,000Matias, Capital 40,000Noble, Capital 40,000


Problem 2 -10Canda, Pardo and Andres

Statement of Changes in Partners EquityFor the Period January 1, 2006 to January 1, 2009

Canda Pardo Andres TotalOriginal capital, January 1, 2006 P 62,500 P 25,000 P 12,500 P 100,000Corrected 2006 net profit 26,375 10,550 5,275 42,200Drawings (15,000) ( 7,800) ( 5,200) ( 28,000)Capital, January 1, 2007 P 73,875 P 27,750 P 12,575 P 114,200Corrected 2007 net profit 10,875 4,350 2,175 17,400Drawings (15,000) ( 7,800) ( 5,200) ( 28,000)Capital, January 1, 2008 P 69,750 P 24,300 P 9,550 P 103,600Corrected 2008 net loss ( 6,750) ( 2,700) ( 1,350) ( 10,800)Drawings (10,000) ( 5,200) ( 5,200) ( 20,400)Capital, January 1, 2009 P 53,000 P 16,400 P 3,000 P 72,400

Schedule of computation of corrected net profit2006 2007 2008

Reported net profit (loss) P 44,000 P 18,500 P (10,500 )Understatement of accrued expenses 2006 ( 400 ) 400

2007 ( 500 ) 5002008 ( 650 )

Understatement of accrued revenues 2006 250 ( 250 )2007 100 ( 100 )2008 150

Overstatement of inventories 2006 ( 1,500 ) 1,5002007 ( 2,000 ) 2,0002008 ( 2,000 )

Understatement of depreciation exp. ( 150 ) ( 350 ) ( 200 )Corrected net profit (loss) P 42,200 P 17,400 P (10,800 )

2. a. Revenue Receivable 150Canda, Capital 2,000Pardo, Capital 800Andres, Capital 400

Expenses Payable 650Merchandise Inventory 2,000Accumulated Depreciation 700

b. Canda, Capital (P3,000 x 625/1000) 1,875Pardo, Capital (P3,000 x 250/1000) 750Andres, Capital (P3,000 x 125/1000) 375

Furniture (P4,500 - P1,500) 3,000c. Andres, Capital 2,625

Furniture 1,500Cash 1,125


Problem 2 -11Abelar and Berces

Statement of Changes in Partners EquityFor the Period January 1, 2007 to January 15, 2009

Abelar Berces Custodio TotalCapital balances before closing the

books, December 31, 2007 P 50,000 P 30,000 P 80,000Net profit for 2007 (Sch 1) 6,600 7,400 14,000Drawing (8,200) (6,800) (15,000)Capital, December 31, 2007 P 48,400 P 30,600 P 79,000Admission of Custodio (Sch. 2) (7,800) (5,200) P 33,000 20,000Net loss for 2008 (5,250) (3,750) (6,000) (15,000)Drawings (7,500) (5,000) (6,800) (19,300)Capital, December 31, 2008 P 27,850 P 16,650 P 20,200 P 64,700Loss on realization on Jan. 15, 2009 (16,520) (11,800)` (18,880) (47,200)Final cash distribution P 11,330 P 4,850 P 1,320 P 17,500

Schedule 1 - Distribution of 2007 net profitAbelar_ Berces Total

Salaries P 9,000 P 9,000 P 18,000Balance - 60%, 40% (2,400) (1,600) ( 4,000)Total P 6,600 P 7,400 P 14,000

Schedule 2 - Admission of CustodioTotal capital contribution (P79,000 + P20,000) P 99,000Interest to be credited to Custodio 1/3__Capital credit of Custodio P 33,000Capital contribution of Custodio 20,000Bonus to Custodio from Abelar and Berces P 13,000

MULTIPLE CHOICE1. B2. A3. B P264,000 [(P278,000 + P418,000 + P192,000) x 1/5] = P86,4004. A Lima = P100,000 x 80% = P80,000

Mitra = P 50,000 x 80% = P40,0005. A Asset revaluationP60,000/20% = P300,000 - P150,000 P150,000

Lima = [P100,000 + (P150,000 x 75%)] x 80% P170,000Mitra = [P 50,000 + (P150,000 x 25%)] x 80% P 70,000Nova P 60,000


6. D Felix Elias TotalOriginal investment P 24,000 P 48,000 P 72,000Net profit 5,430 10,860 16,290Drawings ( 5,050) ( 8,000) ( 13,050)Capital bal . before transfer to Desta P 24,380 P 50,860 P 75,240Required capital based on orig. capitalratio after transfer to Desta of 1/4 int. 18,810 37,620 56,430

Capital to be transferred to Desta P 5,570 P 13,240 P 18,810Excess cash to be dist. based on orig.

capital ratio (P30,000 - P18,810) 3,730 7,460 11,190Distribution of cash to Felix and Elias P 9,300 P 20,700 P 30,000

7. D8. C9. C P90,000 P75,000 = P15,00010. A Capital of Mison prior to admission of Zamora P105,000

Share in the bonus from Zamora [(P90,000 P75,000) 1/2) 7,500Capital of Mison in the new partnership P112,500

11. C AC CC Asset RevVoltaire P180,000 P150,000 P30,000Asuncion 210,000 180,000 30,000Leonor 195,000 195,000

P585,000 P525,000 P60,00012. D P195,000 (P525,000 x 1/3 = P175,000) = P20,00013. A Old partners capital contribution P600,000

Percentage of interest of old partners 75%Total agreed capital of the new partnership P800,000Percentage of interest of Sison x 25%Capital credit of Sison P200,000Bonus to Sison 70,000Cash to be contributed by Sison P130,000

14. C Rivera Sanchez TorresCapital balances before adm. of Vidal P504,000 P252,000 P 84,000Asset revaluation(P180,000/20% ) P840,000 = P60,000 36,000 18,000 6,000

Adjusted capital balances P540,000 P270,000 P 90,000Percentage of unsold interest x 80% x 80% x 80%Capital balances after adm. of Vidal P432,000 P216,000 P 72,000

15. D Total capital of the new partnership (P840,000/75%) P1,120,000Percentage of interest x 25%Amount to be invested by Vidal in the partnership P 280,000

16. B Agreed capital P330,000Capital contribution = P95,000 + P80,000 + P60,000 + P80,000 = 315,000Asset revaluation P 15,000


17. A P80,000 + P12,000 P70,000 = P22,00018. C Capital balance before admission of Manalo P 80,000

Interest sold to Manalo (P80,000 x 15%) (12,000)Share in the recorded asset revaluation (P15,000 x 3/10) 4,500Share in the bonus from Manalo

[(P80,000 + P12,000) - P70,000] x 3/10 6,600Capital balance after admission of Manalo P 79,100

19. B Juan Cosme Luna MagnoCapital balances, April 30, 2008 P 360,000 P 225,000 P 135,0001/6 Interest transferred to Magno ( 60,000) ( 37,500) ( 22,500) P 120,000Balances P 300,000 P 187,500 P 112,500 P 120,000Cash transfers to equalize investment ( 100,000) 12,500 87,500Balances P 200,000 P 200,000 P 200,000 P 120,000Distribution of net profit -equally 3,150 3,150 3,150 3,150Withdrawals ( 1,500) ( 2,000) ( 1,500) ( 2,000)Capital, June 30, 2008 P 201,650 P 201,150 P 201,650 P121,150

20. A Agreed capital = (P201,650 + P201,150 + P201,650) 3/4 = P805,933Interest of Magno 1/4___Required capital credit of Magno P201,483Capital balance of Magno before investing cash 121,150Cash to be invested by Magno P 80,333

21. A Galang Hizon IsletaAsset revaluation method:Capital contributions of partners P600,000 P480,000 P500,000Asset revaluation 252,000 168,000Additional depreciation ( 140,000) ( 140,000) ( 140,000)Capital balances P712,000 P508,000 P360,000

Bonus method:Capital contributions of partners P600,000 P480,000 P500,000Bonus to old partners from new partner 63,000 42,000 ( 105,000)Capital balances P663,000 P522,000 P395,000

Net advantage of bonus method to Isleta P 35,00022. A Campos Centeno

Capital balance P641,976 P728,352Uncollectible accounts ( 20,000) ( 35,000)Worthless inventories ( 5,500) ( 6,700)Other assets written off ( 2,000) ( 3,600)Adjusted capital P614,476 P683,052

P1,297,52823. C Total capital P614,476 +P683,052Total liabilities 967,590

P2,265,118


24. D Total capital P1,297,528 / 80% P1,621,910Interest of Coronel x 20%Contribution of Coronel P 324,382

25. D Campos CentenoCapital balances P614,476 P683,052Required capital P1,297,528/2 648,764 648,764Cash paid (received) P 34,288 (P34,288)

26. B Campos Centeno CoronelCapital balances P614,476 P683,052 P324,382Cash paid (received) 34,288 (34,288)Net profit 130,000 130,000 65,000Drawings (50,000) (65,000) (28,000)

P728,764 P713,764 P361,38227. C The capital balances would be the same as the balances prior to sale of interest.28. C29. D30. D P4,000 x 2/5 = P1,60031. D P3,000 / 40% = P7,50032. A P12,000/3 = P4,00033. C Yumul Yason Ylagan

Interest before retirement P103,000 P 77,000 P180,000Adjustment of assets to FMV 12,000 12,000 24,000

P115,000 P 89,000 P204,000Retirement of Yumul (115,000) ( 2,000) ( 4,000)Capital balance of Ylagan P200,000

34. A Amount paid to retiring partner P28,000Capital of retiring partner

Total capital before retirement P110,000Total capital after retirement 90,000 20,000

Asset revaluation to retiring partner P 8,000Fraction of interest of retiring partner 2/10Total asset revaluation P40,000

CHAPTER 3Partnership Liquidation

EXERCISESExercise 3 - 1

Aguilar Benito Casimiro DavidCapital balances before liquidation P 11,000 P 10,300 P 13,700 P 9,000Loan from partners 2,000Total partners interest P 13,000 P 10,300 P 13,700 P 9,000Loss on realization (P46,000 P12,000) (13,600) ( 10,200) ( 6,800) ( 3,400)Balances P( 600) P 100 P 6,900 P 5,600Additional loss to partners 600 ( 300) ( 200) ( 100)Balances -------- P ( 200) P 6,700 P 5,500Additional loss to partners 200 ( 133) ( 67)Distribution of cash to partners --------- --------- 6,567 5,433

Exercise 3 - 2Duque Espino Felipe Total

Original investments P 50,000 P 22,500 P 20,000 P 92,500Net income for 2007 15,000 7,500 7,500 30,000Drawings in 2007 ( 15,000) ( 10,000) ( 10,000) ( 35,000)Total partners interest before dissolution P 50,000 P 20,000 P 17,500 P 87,500Net assets distributed to partners ( 32,500) ( 16,250) ( 16,250) ( 65,000)Balances P 17,500 P 3,750 P 1,250 P 22,500Loss to partners distributed 2:1:1 ( 11,250) ( 5,625) ( 5,625) ( 22,500)Cash settlement among partners P 6,250 P( 1,875) P( 4,375) ------Exercise 3 - 31. Guarin, Capital 1,500

Receivable from Guarin 1,500To offset receivable from Guarin against his capital.

2. Salary Payable to Henson 500Henson, Capital 500

To include salary payable to Henson to his interest.3. Henson, Capital (P24,500 x 40%) 9,800

Guarin, Capital (P24,500 x 60%) 14,700Loss from Liquidation 24,500

To distribute loss from liquidation to partners.4. Henson, Capital (P9,500 + P500 - P9,800) 200

Guarin, Capital (P18,000 - P1,500 - P14,700) 1,800Cash 2,000

AA1 - Chapter 3 (2008 edition) page2

Exercise 3 - 41. Ibarra Javier Katindig

Original investment P 60,000 P 54,000 P 16,000Net loss for six months* (18,000) (12,000) ( 6,000)Loss on realization (P121,000 - P49,000 = P72,000) (36,000) (24,000) (12,000)Balances P 6,000 P 18,000 P( 2,000)Additional loss to partners ( 1,200) ( 800) 2,000Cash distribution to Ibarra ( 4,800)

* Total capital, March 1 (P60,000 + P54,000 + P16,000) P130,000Net assets, Aug. 31 (P5,000 + P121,000 - P32,000) 94,000Net loss P 36,000

2. Book value of other assets P121,000Total loss on realization

Capital balance of Katindig after dist. of net loss P 10,000Excess of personal liabilities over personal assets ( 5,000)Maximum amount of loss that can be absorbed by Katindig P 5,000Fractional share of Katindig 1/6__ ( 30,000)

Cash that must be realized on sale of other assets P 91,000Exercise 3 51. Book value of other assets (P459,000 P3,000) P456,000

Cash realized:Accounts receivable [P180,000 (P60,000 x 20%)] P168,000Merchandise inventory 75,000Prepaid advertising 2,400Machinery and equipment (P120,000 x 60%) 72,000 317,400

Loss on realization P138,600Lesaca Manalo PartnershipStatement of Liquidation

December 31, 2008Other Liabilities Capital

Cash Assets AP NP Lesaca ManaloBalances before liquidation P 3,000 P456,000 P60,000 P258,000 P90,000 P 51,000Sale of assets and distributionof loss

317,400 ( 456,000) ( 55,440) ( 83,160)Balances P320,400 P60,000 P258,000 P34,560 (P32,160)Payment of liabilities ( 320,400) ( 59,400) ( 258,000) ( 1,200) ( 1,800)Balances P600 P33,360 (P33,960)Additional investment byManalo

12,000 12,000Balances P 12,000 P 600 P33,360 (P21,960)Payment of liabilities ( 600) ( 600)Balances P 11,400 P33,360 (P21,960)Additional loss to Lesaca ( 21,960) 21,960Payment to Lesaca P 11,400 P11,400


Exercise 3 6Nocum Oliva Pascua Quinto

Capital balances before liquidation P180,000 P300,000 P240,000 (P 33,000)Restricted interest possible loss

Non-cash assets P600,000Liquidation expenses 9,000Unrecorded liabilities 15,000

Total P624,000 ( 156,000) ( 156,000) ( 156,000) ( 156,000)Balances P 24,000 P144,000 P 84,000 (P189,000)Restricted interest possible loss toNocum, Oliva and Pascua for thedeficiency of Quinto ( 63,000) ( 63,000) ( 63,000) 189,000

Balances (P 39,000) P 81,000 P 21,000 -Restricted interest possible loss toOliva and Pascua for the deficiency ofNocum 39,000 ( 19,500) ( 19,500)Safe payment - P 61,500 P 1,500 -


Exercise 3 - 8Rama, Sison and ToledoCash Priority Program

PAYMENTSRama Sison Toledo Rama Sison Toledo

Capital balances P30,000 P70,000 P40,000Add Loan balances 20,000 20,000 30,000Total partners interest P50,000 P90,000 P70,000Profit and loss ratio 40% 40% 20%Loss absorption balance P125,000 P225,000 P350,000Allocation I Cash to Toledoreducing LAB to an amountreported for Sison(P125,000 x 20%) (125,000) P25,000

Balances P125,000 P225,000 P225,000Allocation II - Cash to Sison &Toledo reducing LAB to an amount

reported for RamaP100,000 x 40% (100,000) P40,000P100,000 x 20% (100,000) 20,000

Balances P125,000 P125,000 P125,000 P40,000 P45,000Allocation III - Further cashdistribution may be made in theP & L ratio

Exercise 3-91. Julian, Lagman and Magno

Cash Priority ProgramJanuary 1, 2008

PAYMENTSJulian Lagman Magno Julian Lagman Magno

Capital balances before liquidation P 36,000 P 54,000 P18,000Add Note payable to Magno 14,000Total partners interest P 36,000 P 54,000 P 32,000Profit and loss ratio 3/10 3/10 4/10Loss absorption balances P120,000 P180,000

(60,000)

P80,000Allocation I Cash to Lagman reducing

LAB to an amount reported for Julian(P60,000 x 3/10) P18,000

Balances P120,000 P120,000 P80,000Allocation II Cash to Julian & Lagman

reducing LAB to an amount reported forMagno (P40,000 x 3/10) ( 40,000) (40,000) P12,000 12,000

Balances P80,000 P80,000 P80,000 P12,000 P20,000 -Allocation III Further cash distributions

may be made in the P & L ratio


2. Julian, Lagman and MagnoStatement of LiquidationJanuary to March, 2008

Other NP to PAYMENTSCash Assets Liabilities Magno Julian Lagman Magno

Balances before liquidation P12,000 P146,000 P36,000 P14,000 P36,000 P54,000 P18,000January:Sale of assets and dist. Ofloss 30,000 ( 38,000) ( 2,400) ( 2,400) ( 3,200)

Payment of liquidationexpenses ( 3,600) ( 1,080) (1,080 (1,440)

Payment of liabilities ( 36,000) (36,000)Distribution of cash topartners (sch. 1) ( 2,400) (2,400)

Balances P108,000 P14,000 P32,520 P48,120 P13,360February:Sale of assets anddistribution of gain 44,000 (35,000) 2,700 2,700 3,600

Payment of liquidationexpenses (8,400) (2,520) (2,520) (3,360)

Distribution of cash topartners (sch. 2) (35,600) (10,000) (25,600)

Balances P73,000 P14,000 P22,700 P22,700 P13,600March:Sale of assets and

distribution of loss 36,000 (73,000) (11,100) (11,100) (14,800)Balances P36,000 P14,000 P11,600 P11,600 P(1,200)Offset of loan against

deficiency ( 1,200) 1,200Final payment to partners (P36,000) (P12,800) (P11,600

)(P11,600

)

Schedule 1Installment Liquidation

January 31, 2008Amount Julian Lagman Mango

Cash available P2,400Allocation I Payable to Lagman P2,400 P2,400

Schedule 2Installment LiquidationFebruary 29, 2008

Amount Julian Lagman MangoCash available P2,400Allocation I Balance

Payable to Lagman P2,400P20,000 P10,000

P2,40010,000

Allocation II Payable to Julian andLagman

P10,000 P25,600 -


3. Journal entriesJanuary Cash 30,000

Julian, Capital 2,400Lagman, Capital 2,400Magno, Capital 3,200

Other Asset 38,000Julian, Capital 1,080Lagman, Capital 1,080Magno, Capital 1,440

Cash 3,600Liabilities 36,000Cash 36,000

Lagman, Capital 2,400Cash 2,400

February Cash 44,000Other assets 35,000Julian, Capital 2,700Lagman, Capital 2,700Magno, Capital 3,600

Julian, Capital 2,520Lagman, Capital 2,520Magno, Capital 3,360

Cash 8,400Julian. Capital 10,000Lagman, Capital 25,600Cash 35,600

March Cash 36,000Julian, Capital 11,100Lagman, Capital 11,100Magno, Capital 14,800Other assets 73,000

Note Payable to Magno 1,200Magno, Capital 1,200

Note Payable to Magno 12,800Julian, Capital 11,600Lagman, Capital 11,600

Cash 36,000


Exercise 3 - 10U, V and W Co.

Cash Priority ProgramPAYMENTS

Urbe Villa Waldo Urbe Villa WaldoCapital balances P 11,200 P13,000 P 5,800Profit and loss ratio 4/7 2/7 1/7Loss absorption balance P 19,600 P 45,500 P 40,600Allocation I - Cash to Villa reducing

LAB to an amount reported forWaldo (P4,900 x 2/7) ( 4,900) P 1,400

Balances P 19,600 P 40,600 P 40,600Allocation II - Cash to Villa & Waldo

reducing LAB to an amountreported for Urbe

P21,000 x 2/7 ( 21,000) 6,000P21,000 x 1/7 (21,000) P 3,000

Balances P 19,600 P 19,600 P 19,600 P 7,400 P 3,000Allocation III - Further cash distribution

may be made in the P & L ratio

2. Book value of assets P 30,000Loss on realization:

Capital balance of Urbe prior to realization P 11,200Cash to be received by Urbe 10,000Share of Urbe in the loss on realization P 1,200Fractional share of Urbe 4/7_ 2,100

Cash to be realized of the sale of assets P 27,9003. Allocation III - P3,200 4/7 = P5,600 x 1/7 P 800

Allocation II 3,000Total cash received by Waldo P 3,800

4. Book value of assets P 30,000Total cash available

Allocation I P 1,400Allocation II - P1,800 - P1,400 = P400 2/3 600 2,000

Loss on liquidation P 28,000Exercise 3 11Partnership Books1. Inventories 90,000

Capital Adjustment Account 90,0002. Accumulated Depreciation 160,000

Equipment 80,000Capital Adjustment Account 80,000

3. Goodwill 56,000Capital Adjustment Account 56,000P980,000 P924,000 = P56,000


4. Capital Adjustment Account 226,000Belen, Capital (3/4) 169,500Bgnes, Capital (1/4) 56,500

5. Colored Co. Stocks 980,000Allowance for Uncollectible Accounts 12,000Accounts Payable 104,000

Accounts Receivable 124,000Inventories 296,000Equipment 520,000Goodwill 156,000

6. Belen, Capital 563,500Bagnes, Capital 458,500

Cash 42,000Colored Co. Stocks 980,000

New Corporations Books1. Authorized to issue 50,000 shares of P50 par value Ordinary Share Capital.2. Cash 700,000

Ordinary Share Capital 500,000PIC in Excess of Par 200,000

3. Accounts Receivable 124,000Inventories 296,000Equipment 520,000Goodwill 156,000

Allowance for Doubtful Accounts 12,000Accounts Payable 104,000Ordinary Share Capital 700,000PIC in Excess of Par 280,000


Problem 3 2 (Case 3 cont.)Calma, Daza and Esteban

Schedule of Cash Distribution to PartnersCalma Daza Esteban

Capital balances before cash distribution P 27,000 P ( 3,000) P 46,000Add loan balance 8,000Total partners interest P 27,000 P ( 3,000) P 54,000Restricted interest - possible loss to Calma and Estebanin the ratio of 2:1 if Daza fails to pay his deficiency ( 2,000) 3,000 ( 1,000)

Free interests - amounts to be paid to partners P 25,000 - P 53,000Payment to apply on:

Loan P 8,000Capital P 25,000 45,000

Cash distribution P 25,000 - P 53,000

AA1 - Chapter 3 Partnership Liquidation (2005)Suggested Answers page

Problem 3 2 (Case 4 cont.)

Calma, Daza and EstebanSchedule of Cash Distribution to Partners

Calma Daza EstebanCapital balances before cash distribution P 9,000 P (21,000) P 37,000Add loan balance 8,000Total partners interest P 9,000 P (21,000) P 45,000Restricted interest - possible loss to Calm and Esteban inthe ratio of 2:1 if Daza fails to pay his deficiency (14,000) 21,000 ( 7,000)

Balances P( 5,000) - P 38,000Restricted interest - possible loss to Esteban if Calma fails

to pay his deficiency 5,000 - ( 5,000)Free interests - amounts to be paid to partners - - -Payment to apply on:

Loan P 8,000Capital 25,000

Cash distribution - - P 33,000

Chapter 3 Partnership LiquidationSuggested Answers page

Problem 3 - 31. a. Cash 48,000

Accumulated Depreciation 25,000Fuentes, Capital (P72,000 x 5/15) 24,000Goco, Capital (P72,000 x 5/15) 24,000Herrera, Capital (P72,000 x 3/15) 14,400Isla, Capital (P72,000 x 2/15) 9,600

Merchandise Inventory 55,000Accounts Receivable 60,000Store Fixtures 30,000

b. Accounts Payable 76,000Cash (P28,000 + P48,000) 76,000

c. Fuentes, Capital 4,500Herrera, Capital 2,700Isla, Capital 1,800

Goco, Capital 9,000d. Fuentes, Capital 1,500

Isla, Capital 600Herrera, Capital 2,100

e. Fuentes, Loan 2,000Isla, Loan 3,000

Fuentes, Capital 2,000Isla, Capital 3,000

f. Cash 6,000Fuentes, Capital 1,000Herrera, Capital 5,000

g. Accounts Payable 4,000Cash 4,000

h. Isla, Loan 2,000Cash 2,000

2. a. Accounts Payable 4,000Fuentes, Capital 4,000

b. Isla, Loan 2,000Fuentes, Capital 3,000

Herrera, Capital 5,000


Problem 3 3 (cont.)3. a. Accounts Payable 4,000

Herrera, Capital 4,000b. Isla, Capital 2,000

Fuentes, Capital 1,000Herrera, Capital 1,000

Schedule to support the entries in Requirement 1L O A N C A P I T A L

Fuentes Isla Fuentes Goco Herrera IslaBalances before liquidation P 2,000 P 5,000 P27,000 P15,000 P10,000 P 9,000Distribution of loss ( 24,000) ( 24,000) ( 14,400) ( 9,600)Balances P 2,000 P 5,000 P 3,000 P( 9,000) P( 4,400) P( 600)Additional loss for the

deficiency of Goco ( 4,500) 9,000 ( 2,700) ( 1,800)Balances P 2,000 P 5,000 P( 1,500) - P( 7,100) P( 2,400)Additional loss for the

deficiency of Herrera ( 1,500) 2,100 ( 600)Balances P 2,000 P 5,000 P( 3,000) - P( 5,000) P( 3,000)Offset against debit balance

in capital account ( 2,000) ( 3,000) 2,000 - 3,000Balances - P 2,000 P( 1,000) P( 5,000) -Additional investment by

partners 1,000 5,000Payment to Isla - P 2,000 - - - -


Problem 3 -5JKLM Trading Co.

Schedule To Accompany Statement of LiquidationAmounts to be Paid to Partners

February 28, 2008Jocson Kaimo Legarda Manabat

Capital balances before dist. of cash P 19,128 P 88,992 P 101,532 P 22,878Add Loan balances 15,000Total partners interest P 34,128 P 88,992 P 101,532 P 22,878Restricted interest - possible loss ifnothing is realized on remaining assets ( 25,494) ( 38,241) ( 38,241) ( 25,494)

Balances P 8,634 P 50,751 P 63,291 P( 2,616)Restricted interest - additional possibleloss if Manabat is unable to pay hisdeficiency (20:30:30) ( 654) ( 981) ( 981) 2,616

Free interest - payments to partners P 7,980 P 49,770 P 62,310 -

Payment to apply onLoan P 7,980Capital P 49,770 P 62,310 -

Total cash distribution P 7,980 P 49,770 P 62,310 -

JKLM Trading Co.Schedule To Accompany Statement of Liquidation

Amounts to be Paid to PartnersMarch 31, 2008

Jocson Kaimo Legarda ManabatCapital balances before dist. of cash P 18,348 P 38,052 P 38,052 P 22,098Add Loan balance 7,020Total partners interest P 25,368 P 38,052 P 38,052 P 22,098Restricted interest - possible loss ifnothing is realized on remaining assets ( 16,524) ( 24,786) ( 24,786) (16,524)

Free interest - payment to partners P 8,844 P 13,266 P 13,266 P 5,574

Payment to apply on:Loan P 7,020Capital 1,824 P 13,266 P 13,266 P 5,574

Total cash distribution P 8,844 P 13,266 P 13,266 P 5,574

AA1 -Chapter 3 Partnership LiquidationSuggested Answers page

Problem 3 6QRS Partnership

Schedule to Accompany Statement of LiquidationAmounts to be Paid to Partners

July 31, 2008Quizon Roman Silva

Balances before cash distribution P116,250 P159,750 P151,500Add Loan balance 150,000Total partners interest P116,250 P309,750 P151,500Restricted interest possible loss of P480,000on remaining unsold assets and cashwithheld of P30,000 ( 255,000) ( 153,000) ( 102,000)

Balances ( P138,750) P156,750 P 49,500Restricted interest possible loss of P138,750to Roman and Silva 138,750 ( 83,250) ( 55,500)

Balances - P 73,500 (P 6,000)Restricted interest possible loss to Roman ( 6,000) 6,000Payment to Roman to apply on loan P 67,500

QRS PartnershipSchedule to Accompany Statement of Liquidation

Amounts to be Paid to PartnersAugust 31, 2008

Quizon Roman SilvaBalances before cash distribution P 93,000 P145,800 P142,200Add Loan balance 82,500Total partners interest P 93,000 P228,300 P142,200Restricted interest possible loss of P375,000on remaining unsold assets and cashwithheld of P30,000 ( 202,500) ( 121,500) ( 81,000)

Balances ( P109,500) P106,800 P 61,200Restricted interest possible loss of P109,500to Roman and Silva 109,500 ( 65,700) ( 43,800)

Payment to Roman to apply on loan and to Silvato apply on capital - P 41,100 P 17,400


Problem 3 - 7Requirement 1

Tabora, Ureta and VelosoCash Priority Program

January 1, 2008P A Y M E N T S

Tabora Ureta Veloso Tabora Ureta VelosoCapital balances P120,000 P 90,000 P 40,000Loan balances 45,000 30,000 13,000Total partners interest P165,000 P120,000 P 53,000Profit and loss ratio 50% 30% 20%Loss absorption balance P330,000 P400,000 P265,000Allocation I - Cash to Ureta toreduce LAB to amountreported for Tabora ( 70,000) P21,000Balances P330,000 P330,000 P265,000Allocation II - Cash to Taboraand Ureta to reduce LAB toamount reported for Veloso ( 65,000) ( 65,000) P32,500 19,500Balances P265,000 P265,000 P265,000 P32,500 P40,500Allocation III - Further cashdistribution may be madebased on P & L ratio

Requirement 2Amount Tabora Ureta Veloso

January:Cash available P15,000Allocation I - payable to Ureta 15,000 P15,000

February:Cash available P40,000Allocation I - Bal. payable to Ureta 6,000 P 6,000Allocation II - Payable to Tabora and

Ureta in the ratio of 50:30 P34,000 P21,250 12,750P21,250 P18,750

March:Cash available P90,000Allocation II - Balance 18,000 P11,250 P 6,750Allocation III - Based on P & L ratio P72,000 36,000 21,600 P14,400

P47,250 P28,350 P14,400April:

Cash available P30,000Allocation III - Based on P & L ratio 30,000 P15,000 P 9,000 P 6,000


Problem 3 8 (cont.)Requirement 1January: a. Cash 112,000

Accounts Receivable 112,000b. Neri, Capital 2,200

Ordan, Capital 1,100Pacia, Capital 1,100

Cash 4,400c. Accounts Payable 38,000

Cash 38,000d. Pacia, Loan 9,000

Pacia, Capital 7,000Cash 16,000

February: a. Cash 36,000Accounts Receivable 36,000

b. Neri, Capital 1,400Ordan, Capital 700Pacia, Capital 700

Cash 2,800c. Accounts Payable 39,000

Cash 38,000Neri, Capital 500Ordan, Capital 250Pacia, Capital 250

d. Salary Payable to Neri 6,000Neri, Capital 1,400Ordan, Capital 3,700Pacia, Capital 8,700

Cash 19,800March: a. Cash 35,000

Neri, Capital 4,000Ordan, Capital 2,000Pacia, Capital 2,000

Accounts Receivable 43,000b. Neri, Capital 2,000

Ordan, Capital 1,000Pacia, Capital 1,000

Cash 4,000


c. Neri, Capital 39,500Ordan, Capital 19,750Pacia, Capital 19,750

Cash 79,000Problem 3 - 9Requirement 1 Wilson, Yuson and Zapata

Cash Distribution ScheduleJune 30, 2008

P AY M E N T SWilson Yuson Zapata Wilson Yuson Zapata

Capital balances P 67,000 P 45,000 P 31,500Receivable from partners 12,000 7,500Total partners interest P 55,000 P 45,000 P 24,000Profit and loss ratio 50% 30% 20%Loss absorption balance P110,000 P150,000 P120,000Allocation I - Cash toYuson to reduce LABto amt. reported for Zapata 30,000 P 9,000Balances P110,000 P120,000 P120,000Allocation II - Cash to Zapataand Yuson to reduce LABto amt. reported for Wilson 10,000 10,000 3,000 P 2,000Balances P110,000 P110,000 P110,000Allocation III - Based on P & Lratio (P6,000 + P100,000 -P17,000 = P89,000 - P14,000) P37,500 22,500 15,000

TOTALS P37,500 P 34,500 P17,000


Problem 3 9 Requirement No 2Wilson, Yuson and ZapataCash Distribution ScheduleJuly 1 - September 30, 2008

Liabilities Wilson Yuson ZapataCapital balances before liquidation P 17,000 P 55,000 P 45,000 P 24,000July - Dist. of loss on sale of assets (1) (4,750) (2,850) (1,900)

Liquidation expenses (500) (300) (200)Payment of liabilities (17,000)Payment to partners (2) (6,500)

Balances - P 49,750 P 35,350 P 21,900Aug.- Liquidation expenses (750) (450) (300)

Equipment taken by Zapata (10,000)Gain on transfer of eqt. to Zapata (3,000) (1,800) (1,200)Payment to Yuson (3) (4,000)

Balances - P 52,000 P 32,700 P 12,800Sept- Dist. of loss on sale of assets (4) (10,000) (6,000) (4,000)

Liquidation expenses (500) (300) (200)Final distribution to partners - P41,500 P26,400 P8,600

(1) (P22,000 + P14,000) - (P16,500 + P10,000) = P9,500 loss on sale of assets(2) (P6,000 + P26,500 - P1,000 - P17,000) - P8,000 cash withheld = P6,500 cash dist. Req. 1(3) schedule of cash distribution below8,000 1,500 2,500 +4,000(4) (P99,000 - P4,000 BV of equipment taken by Zapata) - P75,000 = P20,000 loss on sale

Schedule of Cash DistributionAugust 31, 20068

Wilson Yuson Zapata Wilson Yuson ZapataCapital balances after dist.of equipment to Zapata P 52,000 P 36,700 P 12,800

Profit and loss ratio 50% 30% 20%Loss absorption balance P104,000 P122,333 P 64,000Allocation I - Cash toYuson to reduce LAB toamt. reported for Wilson 18,333 P 5,500

Balances P104,000 P104,000 P 64,000Allocation II - Cash to Wilson& Yuson to reduce LAB toamount reported for Zapata 40,000 40,000 P20,000 12,000Balances P 64,000 P 64,000 P 64,000 P20,000 P 17,500Allocation III P & L ratio


Problem 3 - 9 - Requirement 3Amount Wilson Yuson Zapata

Cash available in September P76,500Allocation I Balance 1,500 P 1,500Allocation II 32,000 P 20,000 12,000Balance - Allocation III P43,000 21,500 12,900 P 8,600

P 41.500 P 26,400 P 8,600Problem 3 -10

Arceo, Basco and CervoStatement of Changes in Partners Capital

For the Period January 1, 2006 to May 31, 2008Arceo Basco Cervo Total

2006:Original investment P50,000 P30,000 P 80,000Distribution of net income (sch. 1) 15,200 12,800 28,000Drawings (7,000) (6,000) (13,000)Balance, December 31 P58,200 P36,800 P 95,000

2007:Investment of Cervo (sch. 2) (9,100) (4,900) P54,000 40,000Distribution of net loss 4,200 3,000 4,800 12,000Drawings (4,900) (3,900) (4,200) (13,000)Balances, December 31 P40,000 P25,000 P45,000 P110,000

2008:Distribution of cash in Feb. (sch. 3) (5,000) (5,000) (10,000)Distribution of cash in April (sch. 4) (7,000) (5,000) (8,000) (20,000)Balances P28,000 P20,000 P32,000 P 80,000Sale of assets & distribution of lossin May (sch. 5) (17,500) (12,500) (20,000) (50,000)

Final cash distribution P 10,500 P 7,500 P 12,000 P 30,000

Schedule 1 - Distribution of 2006 net incomeArceo Basco Total

Salaries P10,000 P10,000 P20,000Remainder 65%:35% 5,200 2,800 8,000Total P15,200 P12,800 P28,000

Schedule 2 - Admission of CervoTotal capital before admission of Cervo P 95,000Investment of Cervo 40,000Total capital P135,000Interest acquired by Cervo 40%Capital credit of Cervo P 54,000Investment of Cervo 40,000Bonus to Cervo from old partners (shared 65%:35%) P 14,000


Schedule 3 - Cash distribution in FebruaryArceo Basco Cervo

Capital balances before dist. of cash P40,000 P25,000 P45,000Restricted interest - possible loss if nothingis realized on remaining assets (P100,000) 35,000 25,000 40,000

Free interest - amount to be paid to partners P 5,000 P ------ P 5,000

Schedule 4 - Cash distribution in AprilArceo Basco Cervo

Capital balances before dist. of cash P 35,000 P25,000 P40,000Restricted interest - possible loss if nothingis realized on remaining assets (P80,000) 28,000 20,000 32,000

Free interest - amount to be paid to partners P 7,000 P 5,000 P 8,000

Schedule 5 - Loss on realization of assets in MayCapital balances equal to net assets P80,000Cash realized on sale of assets 30,000Loss on realization P50,000

Problem 3-11Partnership Books1. Inventories 60,000

Prepaid Expenses 3,000Goodwill 243,000

Accrued Expenses 6,000Leony, Capital 200,000Espie, Capital 100,000

2. Rover Corp. Stocks 4,500,000Accounts Payable 600,000Accrued Expenses 6,000Allowance for Uncollectible Accounts 120,000

Cash 450,000Accounts Receivable 660,000Inventories 1,350,000Prepaid Expenses 3,000Furniture and Equipment 2,520,000Goodwill 243,000

3. Leony, Capital 2,600,000Espie, Capital 1,900,000

Rover Corp. Stocks 4,500,000


Corporations Books1. Cash 450,000

Accounts Receivable 660,000Inventories 1,350,000Prepaid Expense 3,000Furniture and Equipment 2,520,000Goodwill 243,000

Allowance for Uncollectible Accounts 120,000Accounts Payable 600,000Accrued Expenses 6,000Ordinary Share Capital 4,500,000

2. Land 3,600,000Cash 1,500,000Pre-Operating Expenses 450,000

Ordinary Share Capital 4,800,000PIC in Excess of Par 750,000

Rover CorporationStatement of Financial Position

July 1, 2008Assets Liabilities and Shareholders Equity

Cash P 1,950,000 Accounts Payable P 600,000Accounts Receivable (net of Allow Accrued Expenses 6,000

of P120,000) 540,000 Total Liabilities P 606,000Inventories 1,350,000 Shareholders EquityPrepaid Expenses 3,000 Ordinary Share Capital P9,300,000Land 3,600,000 PIC in Excess of Par 750,000Furniture and Equipment 2,520,000 Retained Earnings (deficit) (450,000)Goodwill 243,000 Total Shareholders Equity P9,600,000Total Assets P10,206,000 Total liabilities and SH equity P10,206,000

MULTIPLE CHOICE1. D2. D3. C4. C Share on loss on realization

(P39,000 + P4,800 P33,000) P10,800Percentage ownership of Imperial 20%Total loss on realization P54,000

5. A Total capital P70,000Cash available 28,000Loss on realization P42,000


6. B Gueco Tiangco BacelonCapital bal. before liquidation P 40,000 P 25,000 P 5,000Loss on realization ( 21,000) (14,000) ( 7,000)Balances P 19,000 P 11,000 P( 2,000)Addl loss to Gueco & Tiangco

for the deficiency of Barcelon ( 1,200) ( 800) 2,000Cash distribution to partners P 17,800 P 10,200 P ---0---

7. D Total capital (P360,000 + P72,000) P432,000Total liabilities 84,000Total loss on liquidation P516,000

8. A Alarcon Baretto CoronelCapital balances P 100,000 P 80,000 P 300,000Drawing ( 60,000) ( 40,000) (20,000)Distribution of net income 24,000 24,000 24,000Loss on liquidation (172,000) (172,000) (172,000)Balances P(108,000 P(108,000) P 132,000Additional loss to partners 108,000 ( 54,000) ( 54,000)Cash to be distributed toCoronel

P 78,000

9. C Total capital P40,000Loans from partners 7,500Total partners interest P47,500Cash available to partners (P37,500 P28,500) 9,000Total loss on realization P38,500

10 C Doria ElmaCapital balances before liquidation P 24,500 P 15,500Loan balances 4,000 3,500Total partners interest P 28,500 P 19,000Loss on realization ( 23,100) ( 15,400)Balances cash to be paid to partners P 5,400 P 3,600

11 C Total assets = Total capital + Total liabilities= P60,000 + P 3,000 P 63,000

Less Cash = P3,000 + P22,200 P23,200 ___2,000Book value of noncash assets P 61,000

12 C P61,000 P23,200 = P37,800 x 3/21 P 5,400


13 B Jurado Katindig Lazaro MarceloCapital balances P 1,000 P25,000 P25,000 P 9,000Loss on realization ( 5,400) ( 7,200) ( 10,800) ( 14,400)

P( 4,400) P(17,800) P14,200 P( 5,400)Additional loss 4,400 3,920 ( 5,880) 5,400Payment to Lazaro P 8,320

14 C Total credits equal debits (P130,000 + P44,000 +P90,000) P264,000

Less Cash 40,000Book value of other assets P224,000Loss on realization [(P50,000 + P17,600 P55,200)/40%] 31,000Cash received from sale of other assets P193,000

15 A16 A17 B Esper Ester Ethel Elmer

Capital balances P 50,000 P50,000 P50,000 P 75,000Loss on realization (112,000) ( 56,000) ( 56,000) ( 56,000)

P(62,000) P(6,000) P(6,000) P19,000Additional loss (3,000) 6,000 ( 1,500) (1,500)Amt to be rec.from the part. P 17,500

200,000P217,500

18 D Urbe VirayInitial investment P 137,500,000 P 137,500,000Purchases ( 1,237,500,000) ( 495,000,000)Sales 1,339,250,000 462,000,000Interest ( 2,200,000) ( 1.375,000)Dividends 1,100,000 2,750,000Cash held P 238,150,000 P 105,875,000Equal share 172,012,500 172,012,500Cash received (paid) (P 66,137,500) P 66,137,500

19 C Delia Erma FloraCapital balances before liquidation P480,000 P135,000 P165,000Loss on liquidation (P180,000) ( 72,000) ( 90,000) ( 18,000)Cash to be received by Delia P408,000

20 A Delia Erma FloraCapital balances before liquidation P480,000 P135,000 P165,000Loss on liquidation (P540,000) ( 216,000) ( 270,000) ( 54,000)

P264,000 (P135,000) P111,000Addl loss to Delia & Flora ( 108,000) 135,000 ( 27,000)Cash to be received by Flora P 84,000


21 D Delia Erma FloraCapital balances before liquidation P480,000 P135,000 P165,000Loss on liquidation (P180,000) ( 72,000) ( 90,000) ( 18,000)Balances P408,000 P 45,000 P147,000Possible loss if remaininginventories are not sold (192,000) ( 240,000) ( 48,000)

Balances P216,000 (P 195,000) P 99,000Add loss to Delia & Flora ( 156,000) 195,000 ( 39,000)Distribution of cash to partners P 60,000 - P 60,000

22 D23 B24 A Estrada Fortuna Gener

Balances before liquidation P 40,000 P 65,000 P 48,000Loss on sale of assets - P40,000 ( 16,000) (16,000) ( 8,000)Possible loss if nothing is realized

on remaining assets - P90,000 ( 36,000) (36,000) (18,000)Balances P( 12,000) P 13,000 P 22,000Addl possible loss to Fortuna and

Gener for deficiency of Estrada 12,000 ( 8,000) ( 4,000)Balances - cash to be distributed P --------- P 5,000 P 18,000

25 B Capital balance of Gener before distribution of cash P 18,000Share in the cash to be withheld for possible liquidation

expenses - P3,000 x 20%/60% (shared by Fortuna& Gener) ( 1,000)

Cash to be received by Gener P 17,00026 D The remaining cash will be distributed according to profit and loss ratio.

Thus the P14,000 will be distributed as follows:Estrada - P14,000 x 40% = P5,600Fortuna - P14,000 x 40% = P5,600Gener - P14,000 x 20% = P2,800

27 C Total capital before drawing and net loss P 135,000Drawing ( 10,000)Net loss for the year ( 20,000)Total liabilities 5,000Total assets P 110,000Cash on hand ( 700)Amount of noncash assets before liquidation P 109,300

28 C Capital balance of Aguila before dist. of net loss P 25,000Share in net loss (P20,000 x 60%) ( 12,000)Capital balance of Aguila before liquidation P 13,000Cash to be received by Aguila 19,000Share of Aguila in the gain on sale of other assets P 6,000Percentage share of Aguila 60%Total gain on sale of other assets P 10,000Book value of other assets 109,300Cash to be realized from sale of other assets P 119,300


PAYMENTS29 D Aguila Balweg Corpuz Aguila Balweg Corpuz

Capital balances P 25,000 P 50,000 P 60,000Drawing (10,000)Net loss ( 12,000) ( 5,000) ( 3,000)Total partners interest P 13,000 P 45,000 P 47,000Profit and loss ratio 60% 25% 15%Loss absorption bal. P 21,667 P180,000 P313,333Alloc. I - Cash to Corpuz (133,333) P 20,000Balances P 21,667 P180,000 P180,000Alloc. II -Cash to Balwegand Corpuz (158,333) (158,333) P 39,583 23,750Balances P 21,667 P 21,667 P 21,667 P 39,583 P43,750Alloc. III - Based on

P & L ratioCash received by Corpuz P 33,000Cash received from Allocation I ( 20,000)Cash received from Allocation Ii P 13,000Fractional share (B 25% and C -15%) 15/40Total cash distributed P 34,667Fractional share of Balingit x 25/40Cash received by Balingit P 21,667

30 B VulnerabilityRanking

Nera - P450,000 / 30% = P150,000 3Ochoa - P250,000 / 50% = P 50,000 1Perez - P250,000 / 20% = P125,000 2

31 D Priority Nera Ochoa Perez PerezCreditors Capital Capital Loan Capital

1st P500,000 100%next P75,000 100%next P375,000 60% 26.67% 13.33%Remainder 30% 50% 20.00%

32 A Nera Ochoa Perez TotalEquities P450,000 P250,000 P250,000 P950,000Loss to absorb Ochoa ( 150,000) ( 250,000) ( 100,000) ( 500,000)Balances P300,000 ------ P150,000 P450,000Loss to absorb Perez ( 225,000) (150,000) ( 375,000)Balance P 75,000 ------ ---- P 75,000

33 C Reyes (20%) Santos (40%) Torres (40%)Net capital balances P100,000 P440,000 P310,000Possible loss of P700,000 ( 140,000) (280,000) ( 280,000)Balances (P 40,000) P160,000 P 30,000Possible loss from Reyes debit balance 40,000 ( 20,000) ( 20,000)`Cash distribution ------ P140,000 P 10,000


34 D Roger Sergio Tito Roger Sergio Tito35 C Capital balances P108,000 P12

lupisan baysa

Documents

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capital gomez

capital p1

average capital p

computation of average

santos abad totalinterest

santos abad totalbonus

income summary