EASY

1. Vincent and Lerry formed a partnership. Vincent contributed cash amounting to P 450,000 and, Lerry contributed cash of P
43,500 and a parcel of land that he bought at P 350,000. The said land was sold for P 351,000 eight days after the formation was
formed. If the land was assessed by the city assessor at P 349,000, by BIR at P 360,000, a zonal value of P 362,000 and, they
agreed that the land is valued at P 325,000. At what amount the land should be recorded in the partnership books?

2. True or False. A silent partner is allowed to do transactions that is in the ordinary course of business.

3. During January 2018, the cost of beginning inventory of Benett Merchandising is P 726,000. If he had a net purchases of P
130,550 and the ending inventory is P 27,750 less of one-quarter of the beginning inventory. How much is his Cost Of Goods
Sold?

Average

4. In WAG Partnership, partners Wendell, Aaron, and Gabriel had a profit-sharing agreement of 4:4:2, respectively. If the
partnership have cash of P 1,000,000, noncash assets of P 500,000, a tota liability of P 1,000,000, a loan from Wendell of P
100,000, and capital of Wendell - P 200,000; Aaron - P 100,000, and; Gabriel - P 100,000. How much is the cash available for
distribution after the payment of the loan from Wendell?

5. Milben Corporation has 1,000 shares of 10% Preference share at P 250 par, and 2,000 shares of P100 par ordinary shares. If
Milben declared a P 500,000 dividend, how much is the dividend per share of ordinary shareholders if the dividends are in
arrears for two years and is also participating?

6. The presumption of insolvency of a partner during the partnership liquidation is based on what principle?

DIFFICULT

7. Joshua Company uses a predetermined factory overhead rate based on direct labor hours. For the month of February,
Joshua’s budgeted overhead was P 931,500 based on 6,000 labor hours. In the same month the company incurred an actual cost of
P 942,000 based on 5,950 hours of labor. How much is the over- or underapplication of overhead?

8. The Jairus Company manufactures non-programmable calculators. During the fiscal year just ended, the company incurred
prime cost of P 1, 257,250 and conversion costs of P 1,137,500 of which overhead is applied at 225% of direct labor costs. How
much is the materials at the end of the fiscal year?

9. Harvey and Dex realized a profit of P 100,000 during the year of 2017. Each partner has beginning capital of P 50,000 and P
100,000, respectively. If they agree to an interest of 10% to their beginning credited capital, an annual salary of P 10,000, and a 25%
bonus after bonus, interest and salaries. Who had the larger share in the profit?