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ACCOUNTING FOR SPECIAL TRANSACTIONS
FIRST GRADING EXAMINATION
1. AAA and BBB are partners with capital of
... [Show More] P60,000 and P20,000, respectively.
Profits and losses are divided in the ratio of 60:40. AAA and BBB decided to form a
new partnership with CCC, who invested land valued at P15,000 for a 20% capital
interest in the new partnership. CCC’s cost of the land was P12,000 the
partnership elected to use the bonus method to record the admission of CCC into
the relationship. CCC’s capital account should be credited for
a. P12,000 c. P16,000
b. P15,000 d. P19,000
60+20+15= 95 x 20%=19
2. AAA and BBB formed partnership in 2009. The partnership agreement provides for
annual salary allowances of P55,000 for AAA and P45,000 for BBB. The partners
share profits equally and losses in a 60:40 ratio. The partnership had earnings of
P80,000 for 2009 before any allowance to partners. What amount of these earnings
should be credited to each partner’s capital account?
AAA BBB AAA BBB
a. P40,000 P40,000 c. P 44,000 P
36,000
b. 43,000 37,000 d. 45,000
35,000
B
3. The partnership agreement of AAA and BBB provides that interest at 10% per year
is to be credited to each partner on the basis of weighted-average capital balances.
A summary of BBB’s capital account for the year ended December 31, 2009, is as
follows:
Balance, January 1 P 140,000
Additional investment, July 1 40,000
Withdrawal, August 1 15,000
What amount of interest should be credited to BBB’s capital account for 2009?
a. P15,250 c. P16,500
b. P15,375 d. P17,250
4. AAA and BBB are partners who share profits and losses on the ratio of 6:4,
respectively. On May 1, 2009, their respective capital accounts were as follows:
AAA P 60,000
BBB 50,000
On the date, CCC was admitted as a partner with one-third interest in capital and
profits for an investment of P40,000. The new partnership began with total capital
of P150,000. Immediately after CCC’s admission, AAA’s capital should be
a. P50,000 c. P56,667
b. P54,000 d. P60,000
P a g e | 2
5. AA and BB formed a partnership in 20x1 and made the following inv [Show Less]