“

Accounting 13 Name:_____________________Score:______
QUIZ

l.Determine whether the following is a trade receivable or non-trade receivable and whether it is normally classified as
current or non-current.
1. Deposits on contracts
2. Advances to subsidiary & associates
3. Accounts Receivable
4. Claims from insurance companies
5. Sales on account
6. Advances to shareholders, officers,
directors and employees
7. Accounts receivable on which post-dated
checks are held
8. Subscriptions receivable currently
collectible
9. Promissory notes received from customers
10. Installments receivable, collectible within
the normal operating cycle
Trade/Non-trade Current/Non-currrent
_________________ ___________________
_________________ ___________________
_________________ ___________________
_________________ ___________________
_________________ ___________________
_________________ ___________________
_________________ ___________________
_________________ ___________________
_________________ ___________________
________________ ____________________

II. Determine whether the following items shall be presented or included as part of the line item “Inventories” on
December 31, 2017 statement of financial position of Bravo Company. Write Y if to be
included and N if not includible. Bravo Company is both a merchandising and manufacturing company.

______1. Items shipped today, invoice mailed CIF (cost, insurance, freight); freight collect.
______2. Goods in process.
______3. Items ordered and in the receiving department.
______4. Items counted by Bravo company in its bodega and warehouses.
______5. Items shipped today, invoice mailed, FOB destination, freight collect.
______6. Advances to suppliers for materials ordered.
______7. Items shipped today, invoice mailed, ex-ship; freight collect.;
______8. Items currently being used for window display.
______9. Raw materials on hand not yet placed into production.
_____10. Items in the shipping department.
_____11. Goods out on consignment.
_____12. Gasoline and oil for testing finished goods.
_____13. Unsalable finished goods.
_____14. Office Supplies.
_____15. Goods out on approval
_____16. Goods held on consignment.
_____17. Items shipped today, invoice mailed, FAS (free alongside) freight prepaid.
_____18. Items purchased, invoice received, FOB Shipping point, freight collect.
_____19. Items purchased, invoice received ex-ship, freight prepaid.
_____20. Items purchased, invoice received FOB Destination, freight collect.
III. During March 2017, Cagayan Corporation recorded the following for its inventory:
Units Unit cost Total cost
March 1 Beginning balance 16,000 P140 P2,240,000
5 Purchase 4,000 150 600,000
10 Sale 15,000
20 Purchase 20,000 160 3,200,000
25 Sale 8,000
31 Purchases 10,000 150 1,500,000
Compute the cost of the ending inventory on March 31 under each of the following:
a. Weighted average method c. FIFO
b. Moving average method

IV. Vestal Corporation reported the following information for the current year:
Debit Credit
Accounts Receivable P3,000,000
Allowance for bad debts P20,000
Net credit sales P 8,000,000
Compute the amount of Bad Debts expense for the current year under the following assumptions:
a. 2% of accounts receivable is uncollectible
b. Accounts amounting to P75,000 are estimated to be uncollectible based on aging of
accounts receivables
c. One-half of 1% of net credit sales are estimated to be uncollectible
Accounting 13 Name:_____________________________Score:________
FINAL EXAMINATION – Dec. 13, 2017

I.IDENTIFICATION. Write on the space provided the terms being described in each numbered item below.

__________________________1. Represent obligations of an entity arising from past transactions or events, the
settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.
__________________________2. Represents the amount owed by an entity to its suppliers as a result of accepting
goods or services in exchange of a promise to pay for them in the near future.
__________________________3. Present obligation that arises from past event but is not recognized because it is not
probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the
amount of the obligation cannot be measured reliably.
__________________________4. Assets held by an entity for the accretion of wealth through distribution of wealth
such as interest, royalties, dividends and the like.
__________________________5. Method of depreciation that computes the depreciation expense by dividing the
depreciable amount by the useful life of the asset in years.
__________________________6. The systematic allocation of the cost of an asset (minus its salvage value) over its
estimated over its estimated useful life.
__________________________7. The systematic allocation of the cost or revalued amount of an intangible asset, less
any residual value, as an expense over the asset’s useful life.
__________________________8. Method of depreciation that considers the total number of hours the asset is used
during the prayer.
__________________________9. Identifiable non-monetary assets without physical substance but have future
economic benefits to the entity.
_________________________10. Fall in the market value of an asset so that its recoverable amount is now less than its
carrying amount in the statement of financial position.

II. Classify the following assets as:

(A) Trade receivable (TR); Non-trade receivable (NTR); Inventories (INVENT); Investments (INVEST); Property, Plant and
Equipment (PPE); or Intangible assets (IA)
(B) Current (C) or Non-current (NC)

A B
1. Advances to subsidiaries & associates ______________________ _______________
2. Goods out on consignment ______________________ _______________
3. Accrued income such as rent, interest, dividends ______________________ _______________
4. Goodwill ______________________ _______________
5. Trading securities purchased to generate short-
term gains or profits ______________________ _______________
6. Subscriptions receivable collectible within one year ______________________ _______________
7. Financial assets purchased to generate short-term
profits but the fair value changes are not recognized
in the computation of net income for the year ______________________ _______________
8. Cash surrender value of life insurance policy ______________________ _______________
9. Land and building held for sale in the ordinary
course of business ______________________ _______________
10. Office and Store equipment ______________________ _______________
11. Trademarks or trade names ______________________ _______________
12. Franchise and licensing agreements ______________________ _______________
 13. Building held for rentals to ______________________ _______________
14. Building used in production of goods. ______________________ _______________
15. Advance payment for purchase of merchandise ______________________ _______________

III. Determine whether the following items shall be included or excluded from the “Inventories “. Write A if the item is
included, if not , write B.

________1. Items shipped today, invoice mailed, CF (Cost, freight) freight prepaid.
________2. Items shipped today, invoice mailed, ex-ship; freight prepaid.
________3. Gasoline and oil for testing finished goods.
________4. Items shipped today, invoice mailed, FAS (free alongside).
________5. Raw materials on hand, not yet placed into production.
________6. Items in the shipping department.
________7. Items purchased, invoice received, FOB shipping point; freight collect
________8. Advertising catalogs and shipping cartons.
________9. Items purchased, invoice received, FAS (free alongside); freight collect.
_______10. Items purchased, invoice received FOB destination; freight collect.
_______11. Unsalable finished goods.
_______12. Items purchased, invoice received, FAS (free alongside); freight prepaid.
_______13. Goods out on approval.
_______14. Items in the receiving department, returned by customers, in good condition.
_______15. Goods in process.

IV. Short Problems: Give what is required. Write your answers on the space provided. Show computations in the blank
spaces of this page or at the back of page 1.

A.The following data are available for Cora Company on Dec. 31, 2017:
Sales (80% are on account) P8,000,000
Accounts Receivable 2,000,000
Allowance for Bad Debts, Jan 1 100,000
Accounts written off during the year 30,000
Allowance for Bad Debts, Dec 31 70,000
 1. What is the amount of Bad debts expense if 5% of accounts receivable on
Dec 31, 2017 is estimated to be uncollectible?____________________

2. What is the amount of Bad debts expense if after aging of accounts receivable on
Dec 31, 2017 it is estimated that P80,000 of accounts receivable is uncollectible?_________________

3. What is the amount of Bad debts expense if it is estimated that 2% of credit sales will not
be collected?________________

B.The following data pertain to an inventory item of Cristina Company for January, 2017:

Date Description No. of units Cost per unit

Jan 1 Beginning balance 600 P200
8 Sale (500)
18 Purchase 900 P210
22 Sale (700)
31 Purchase 600 P220

4. What is the cost of the ending inventory under the FIFO method of inventory costing?_______________

5. What is the cost of the ending inventory under the weighted average method?____________________

END
Accounting 13 Name:_____________________Score:______
REMOVAL EXAM

l.Determine whether the following is a trade receivable or non-trade receivable and whether it is normally classified as
current or non-current.
1. Advances to shareholders, officers,
directors and employees
2. Accounts receivable on which post-dated
checks are held
3. Subscriptions receivable currently
collectible
4. Promissory notes received from customers
5. Installments receivable, collectible within
the normal operating cycle
6. Deposits on contracts
7. Advances to subsidiary & associates
8. Accounts Receivable
9. Claims from insurance companies
10. Sales on account
Trade/Non-trade Current/Non-currrent
_________________ ___________________
_________________ ___________________
_________________ ___________________
_________________ ___________________
________________ ____________________
_________________ ___________________
_________________ ___________________
_________________ ___________________
_________________ ___________________
_________________ ___________________

II. Determine whether the following items shall be presented or included as part of the line item “Inventories” on
December 31, 2017 statement of financial position of Bravo Company. Write Y if to be
included and N if not includible. Bravo Company is both a merchandising and manufacturing company.

______1. Goods out on consignment.

______2. Gasoline and oil for testing finished goods.
______3. Unsalable finished goods.
______4. Office Supplies.
______5. Goods out on approval
______6. Goods held on consignment.
______7. Items shipped today, invoice mailed, FAS (free alongside) freight prepaid.
______8. Items purchased, invoice received, FOB Shipping point, freight collect.
______9. Items purchased, invoice received ex-ship, freight prepaid.
_____10. Items purchased, invoice received FOB Destination, freight collect.
_____11. Items shipped today, invoice mailed CIF (cost, insurance, freight); freight collect.
_____12. Goods in process.
_____13. Items ordered and in the receiving department.
_____14. Items counted by Bravo company in its bodega and warehouses.
_____15. Items shipped today, invoice mailed, FOB destination, freight collect.
_____16. Advances to suppliers for materials ordered.
_____17. Items shipped today, invoice mailed, ex-ship; freight collect.
_____18. Items currently being used for window display.
_____19. Raw materials on hand not yet placed into production.
_____20. Items in the shipping department.
Accounting 12 Name:_________________________________
Quiz-Operation Section:______________Score:_____________

I.TRUE or FALSE. Write TRUE if the statement is correct, if not correct, write FALSE.

____________1. A partnership may validly stipulate that one partner shall receive no share in profits or losses.
____________2. The Income Summary account is to be credited when recording distribution of net profit.
____________3. Salary allowances will be given to partners even if operation yielded a net loss.
____________4. Profits or losses are dividing equally among the partners unless the partnership agreement specifies
otherwise.
____________5. It is possible for partner’s capital account to increase as a result of distribution of net loss.
____________6. In the absence of specific agreement, the law requires that profit be divided equally among the
partners.
____________7. The industrial partner is not liable for losses because he cannot withdraw the work or labor already
done by him.
____________8. In the absence of stipulation, the share of each partner in profits or losses shall be in the same
proportion to what he may have contributed, but the industrial partner may not be liable for the losses.
____________9. Salary and interest allowances to partners are reported in the income statement as salaries and
interest expenses.
___________10. When Income Summary account has a credit balance, it means net loss has been incurred.

II. A summary of the changes in the capital accounts of the partners in MARINARA Partnership form the year 2017 were
as follows:
MARI NARA Total
Balance, Jan 1 P80,000. P100,000 P180,000
Investment, April 1. 20,000. 20,000
Withdrawal, May 1. ( 5,000). (20,000). (25,000)
Investment, July 1. 40,000 40,000. 80,000
Withdrawal, Sept 1. (5 ,000). (5,000)
Balance, Dec 31. P135,000. P115,000. P250,000

The drawing accounts have the following balances on Dec 31, 2017:
Mari, Drawing. – P7,000. Nara, Drawing - P 9,000
Required: 1. Assuming that profit or loss is divided 3:2 between Mari and Nara, respectively and that the result of
of operation in 2017 is net profit of P130,000, prepare:
a. Entries to record the distribution of the net profit to partners and to close the drawing accounts.
b. Capital Statement for the year ended Dec. 31, 2017.

2. Determine the share of the partners in the 2017 profit or loss under each of the following independent
assumptions:

a. Profit for 2017 is P60,000. It is to be divided according to beginning capital ratios.

b. Profit for 2017 is P100,000. It is to be divided according to peso-month average capital ratios.

c. Profit for 2017 is P30,000. The partners agreed to the following distribution:
*Bonus to Mari of 15% of net income;
*Interest of 10% on ending capital balances to each partner;
*Remainder is divided 2:1 to Mari and Nara, respectively.

d. Result of operation for 2017 is a loss of P65000. The agreed distribution of profit or loss are the
following:
 Salaries of P20,000 to Mari and P30,000 to Nara;
 Interest of 10% on beginning capital balances;
 Balance divided equally.

END

Accounting 12. Name:____________________________________

PRELIM EXAM. SECTION:______________SCORE:_____________

I.TRUE OR FALSE: Write TRUE if the statement is correct, write FALSE if the statement is not correct.

_____________1. If the partnership agreement is silent as to the distribution of loss, same shall be divided in the same
manner as profits.
_____________2. If the partnership agreement is silent as to distribution of profits or loss, such will be divided equally
among the partners.
_____________3. A partnership agreement cannot stipulate that one partner shall receive no share in profits or losses.
_____________4. Provision for salaries and interest on capital balances will not be given to partners if operation results
to a loss.
_____________5. A bonus is allowed to a partner regardless of whether the business realized a profit or incurred a loss.
_____________6. The basis on which profits or losses are shared is a matter of agreement among the partners and can
be the same as their capital contribution ratios.
_____________7. A limited partner is one whose investments in the partnership is limited to a certain amount.
_____________8. The wrongful act of any partner does not bind the partnership and/or the other partners.
_____________9. Profit sharing should always spelled out in the Articles of Partnership.
____________10. Unlimited liability is a protection for creditors.
____________11. There can be a partnership without mutual contribution of money, property or industry to a common
fund.
____________12. A limited partnership is composed of all limited partners.
____________13. A partner’s withdrawal of assets that is considered as a permanent reduction in the partner’s equity is
debited to the partner’s drawing account.
____________14. Salaries of partners are reflected in the income statement as an expense.
____________15. A partnership is an accounting and taxable entity.

II. IDENTIFICATION. Write in the blanks the term/s described in each number below.

_______________________________1. All partners in this partnership are liable to the extent of their separate
properties.
_______________________________2. Is the word added to the name of the partnership to inform the public that the
business is a limited partnership.
_______________________________3. A partner who is designated to wind up or settle the affairs of the partnership
upon termination of the business.
_______________________________4. A partnership which has complied with all legal requirements for its
establishment.
_______________________________5. A partner who is liable only to the extent of his capital contribution.
_______________________________6. One who has no equity interest in the partnership but allows his name to be
used by the partnership. He then assumes unlimited liability as general partner.
_______________________________7. A characteristic of the partnership which means that it can easily be dissolved.
_______________________________8. One who contributes money/property in addition to services.
_______________________________9. A partnership that has failed to comply with the legal requirements for its
existence.
______________________________10. The characteristic of a partnership which states that the act of one partner
binds the other partners and the partnership.

Accounting 12. Name:__________________________________

QUIZ – DISSOLUTION Section:_______________Score:_____________

I.TRUE OR FALSE. Write TRUE if the statement is correct, write FALSE if the statement is not correct.

______________1. A new partner may be admitted in a partnership without the consent of all partners.
______________2. When a new partner is admitted by purchase of interest, the total capital of the partnership will
remain unchanged.
______________3. Total agreed capital is not specified, it is usually less than total contributed capital.
______________4. When a new partner is given a 30% interest, the old partners correspondingly receives the same
percentage interest.
______________5. A partnership is dissolved when a new partner is admitted into the partnership.
______________6. The total assets of the partnership will remain the same when a new partner is admitted by
investment.
______________7. Santos purchased Romero’s P250,000 partnership interest for P300,000. The entry to record such
transaction is for P300,000.
______________8. Bonus is given to the new partner when he invests P150,000 but he is credited for P140,000.
______________9. Bonus is a transfer of capital from one partner to another with corresponding payment.
_____________10. The dissolution of a partnership is the same as the liquidation of a partnership.
_____________11. A partnership may be dissolved without being terminated.
_____________12. A partner who withdraws from the partnership may be paid an amount more than his capital
balance.
_____________13. The withdrawal of a partner from a partnership is a type of dissolution.
_____________14. The term dissolution is synonymous with liquidation.
_____________15. The admission of a partner by investment is always recorded by debiting the assets invested.

II. Aisha, Baesa and Karen are partners with the following capital balances on Jan 31, 2018:
Aisha, Capital. P100,000
Baesa, Capital. 200,000
Karen, Capital. 300,000
Total. P600,000

Aisha, Baesa and Karen share profits and losses 2:3:5, respectively.

Required: Prepare journal entries with explanation to record the admission/retirement of a partner under each of the
following independent cases: (Show computations when necessary)

1. Diana is admitted as a new partner by purchasing 1/4 interest of Aisha for P30,000.
2. Diana is admitted as a new partner upon purchase of 30% interest from all partners for P180,000.
3. Diana is admitted as a partner by buying 1/5 interest from all partners for P150,000. Prepare also a schedule of
cash distribution for this transaction.
4. Diana invested P100,000 in the partnership.
5. Diana invested P200,000 and is given a ¼ interest in the partnership.
6. Diana invested P200,000 and is given a 1/5 interest in the partnership.
7. Diana invested P200,000 and is given a 30% interest in the partnership.
8. Instead of admitting a new partner, Baesa decided to retire and was paid P200,000 by the partnership.
9. Baesa retired from the partnership and was paid P220,000 from the partnership cash.
10. Baesa. retired and was paid P210,000 by Aisha.
Accounting 12. Name:_______________________________________
Quiz – Liquidation Section:______________Score:___________________

I.IDENTIFICATION. Write the word/s described in each number below

1. The legal right to apply a part or all of an amount owing to a partner on a loan balance against his capital deficiency
_____________________________________
2. Excess of the partner’s share in losses over the partner’s credit balance____________________________
3. Excess of the book value of the non-cash assets over the cash proceeds from realization_________________________
4. Excess of the cash proceeds from realization over the book value of the non-cash assets _______________________
against the partnership_________________________________
5.A partner whose personal assets are less than his personal liabilities______________________________
6. A partner whose personal assets are more than personal liabilities___________________________________
7. A partner with a negative capital balance after distribution of loss on realization____________________________
8. Term usually used in liquidation which means sale of non-cash assets______________________________
9. The process of winding up the business operation which includes sale of non-cash assets and payment of claims
10. A partner who takes care of the winding up affairs upon termination of the partnership________________________

II.TRUE OR FALSE. Write True if the statement is correct, if not correct, write FALSE:

_____________1. In the exercise of right of offset, the amount of the offset is the amount of the loan or the capital
deficiency, whichever is higher.
_____________2. Lump-sum liquidation is synonymous with installment liquidation.
_____________3. To eliminate his capital deficiency, the partner must make additional investment if he is solvent.
_____________4. A statement of liquidation must be prepared when the partnership is dissolved.
_____________5. Bankruptcy is among the reasons why a partnership is liquidated.
_____________6. Partners must be paid first before payment to partnership creditors.
_____________7. A partner is solvent when his personal assets are more than his personal liabilities.
_____________8. In liquidation, the partnership continues to operate.
_____________9. A deficient partner has a debit balance in his capital account.
____________10. Outside creditors enjoy priority claim to partnership assets over partners.

III.The following balance sheet is prepared for the partnership of Liza, Marielle and Nadine are, on January 5
2018, just before liquidation.
Cash P60,000. Liabilities P185,000
Non -cash assets. 530,000. Liza, Loan 25,000
Nadine, Loan. 75,000
Liza, Capital 250,000
Marielle, Capital 98,000
Nadine, Capital 25,000
Total Assets P590,000. Total Liabilities & Partners’ Capital P590,000

The partners decided to liquidate their business on Feb 5, 2017 and accordingly sold their non-cash assets.

Required: Prepare a Statement of Liquidation and journal entries to record the liquidation under each of the following
assumptions:
1. Non-cash assets were sold for P350,000. Profit and loss ratio is 5:3:2 for Liza, Marielle and Nadine respectively.
Deficient partners are solvent.
2. Non-cash assets were sold for P300,000. Profit and loss ratio is 3:5:2 for Liza, Marielle and Nadine respectively.
Deficient partners are insolvent.
Accounting 12. Name:__________________________________
MID-TERM EXAM Section:______________Score:______________

I.MATCHING TYPE: Write the LETTER of the word or group of words that matches those numbered statements below:

A. Dissolution. G. Liquidating partner. M. Secret partner

B. Liquidation. H. Bonus. N. Deficient partner
C. Realization. I. Capitalist partner. O. Statement of liquidation
D. Capital deficiency J. Unlimited liability. P. General Partnership
E. Solvent partner. K. Professional partnership. Q. General partner
F. Insolvent partner. L. Limited partner. R. Not given

_______1. A partner who is liable to pay to third parties even up to the extent of his personal assets.
_______2. One who takes care of the winding up affairs of the partnership at time of termination.
_______3. Is the change in the relationship among the partners that requires the formulation of new partnership
contract.
_______4. The process of winding up the business operation which includes sale of non-cash assets and payment of
claims against the partnership.
_______5. A transfer of capital from one partner to another without being paid for.
_______6. The characteristic of a partnership which states that partners are liable to third parties beyond their capital
contribution.
_______7. Partner whose personal assets are more than his personal liabilities.
_______8. Partnership that is not liable to pay income taxes.
_______9. One who contributes cash or other assets to the partnership.
______10. One whose personal assets are less than his personal liabilities.
______11. Debit balance in capital after distribution of loss on sale of non-cash assets.
______12. The conversion of non-cash assets into cash.
______13. A partner who has debit balance in his capital account.
______14. Partner who is liable to third parties up to his capital contribution only.
______15. Shows the sequence of the procedures that are being followed in the liquidation process.

II. TRUE OR FALSE. WRITE T if the statement is right; if wrong, write F.

_____1. Lump-sum liquidation is synonymous with installment liquidation.

_____2. A statement of liquidation must be prepared when the partnership is dissolved.
_____3. Bankruptcy is among the reasons why a partnership is dissolved.
_____4. In liquidation, the partnership continues to operate.
_____5. Partners must be paid first before payment to creditors.
_____6. A deficient partner has a debit balance in his capital account.
_____7. In the exercise of right-of-offset, the amount of the offset the amount of the loan or the deficiency, whichever is
lower.
_____8. Personal creditors of partners have priority on partners’ personal properties over partnership creditors.
_____9. Admission of a partner by investment does not change the total assets and total capital of the partnership.
_____10. The dissolution of a partnership is the same as the liquidation of the partnership.
_____11. The retirement of a partner causes dissolution of the partnership.
_____12. Admission of a new partner by purchase of interest does not change total capital of the partnership.
_____13. A partnership may be dissolved without being terminated.
_____14. A retiring partner may be paid by one or more of the continuing partners.
_____15. Profit sharing is seldom spelled out in the partnership agreement.
_____16. If the partnership agreement is silent as to distribution of profits or loss, such shall be divided equally.
_____17. Bonus is usually given to a partner regardless of the result of operation.
_____18. Non-cash assets invested by partners are recorded at fair market value if there is no agreed value.
_____19. A limited partnership is composed of all limited partners.
_____20. Admission of industrial partners should be recorded by a memorandum entry.

III.SHORT PROBLEMS: Give what is required in each item below. Write your answer on the space provided for.
Computations can be made at the blank spaces or at the back of the questionnaires.

1. Ran a invested cash of P100,000 and furniture and fixtures with a market value of P50,000 and a book value of
P65,000. However, the other partners agreed that the value of the asset is P55,000.
Rana, Capital_______________________

2. Tim invested land with a fair market value of P200,000 of which an outstanding liability of P40,000 will be
assumed by the partnership.
Tim, Capital________________________

3. Waly and Eva armed a partnership. Waly invested cash of P100,000; equipment that cost P400,000 with
accumulated depreciation of P100,000. The partners agreed that the value of the equipment is only P250,000.
On the other hand, Eva invested inventory with a market value of P150,000 and cash of P80,000.
Waly, Capital_______________________Eva, Capital_______________________

4. Gemma and Mariz are partners with the following capital accounts for 2017:
Gemma. Mariz
Capitals, Jan 1. P100,000. P150,000
Additional investments 50,000. 100,000
Permanent withdrawals. ( 20,000). (. 50,000)
Capitals, Dec 31. P130,000. P 200,000
Net income of the partnership for 2017 amounts to P100,000.

What is the share of the partners in the net income if profits or losses are divided according to beginning capital
ratios?
Gemma_____________________. Mariz________________________

What is the share of the partners in the net income if profits or losses are divided according to ending capital
ratios?
Gemma_____________________. Mariz________________________

What is the share of the partners in the net income if profit or loss is divided 2:3 between Gemma and Mariz,
respectively?
Gemma_____________________. Mariz________________________
IV. On January 2, 2017, the following condensed balance sheet is rented for the partnership of Anne, Carla and Dara,
who share profits and losses in the ratio of 4:3:3, respectively.

Cash P150,000. Liabilities. P150,000

Non-cash Assets. 250,000. Anne, Loan. 5,000
Carla, Loan. 35,000
Anne, Capital. 30,000
Carla, Capital. 150,000
Dara, Capital. 30,000
Total. P400,000. Total. P400,000

On the same date above, the partners decided to liquidate the partnership and agreed to sell the non-cash assets so that
cash distribution can be made to creditors and to partners.

Required: Prepare a Statement of Liquidation and journal entries to record the liquidation assuming the non-cash
assets were sold for P150,000. Carla is solvent, but Anne and Dara are insolvent.

V. Amina, Fatima and Jana are partners with capital account balances as follows:
Amina – P200,000. Fatima – P400,000. Jana – P600,000

Amina, Fatima and Jana share profits and losses 1:2:3, respectively.

Prepare journal entries with explanation to record the following independent transactions. Show necessary
computations.

1. Sarah is admitted by buying ¼ interest in the partnership for P350,000. Prepare also a schedule of cash distribution.
2. Sarah is admitted upon investment of cash of P100,000 and merchandise inventory of P200,000.
3. Sarah is admitted upon investment of P300,000 for a ¼ interest in the partnership.
4. Sarah is admitted upon investment of P300,000 for a 1/6 interest in the partnership.
5. Instead of admitting a new partner, Fatima decided to retire from the partnership. She was paid P420,000 from the
partnership cash.

END
Accounting 12. Name:_____________________________________
FINAL QUIZ. Section:_______________Score:________________

I.IDENTIFICATION. Write on the space provided the term/s described in each number below:

____________________________1. Those who compose the corporation whether stockholders or members or both.
____________________________2. Holds that the capital stock of a corporation is considered as trust for the protection
of the creditors.
____________________________3. Rules of action adopted by the corporation for its internal government and for the
government of its officers, stockholders or members.
____________________________4. A class of stock which exercise no special preference over any other class of stock.
____________________________5. Evidence of ownership of a share of stock.
____________________________6. Evidence of approval by the Securities and Exchange Commission of the application
to organize a corporation.
____________________________7. Owners of shares of stock in a stock corporation.
____________________________8. Stock with a specific value fixed in the Articles of Incorporation as well as on the
stock certificate.
____________________________9. Net income distributed to stockholders.
___________________________10. Amount of the minimum issue price of no-par value shares.
___________________________11. Supreme authority in matters of management of the regular and business affairs of
the corporation.
___________________________12. Application filed with the SEC by the persons who want to organize a corporation.
___________________________13. A corporation existing in fact and in law. It is organized in conformity with the law.
___________________________14. Owners of non-stock corporation.
___________________________15. Account title used to record net income(or net loss) from operation of the
corporation.
___________________________16. Account title used to record the excess of the issue price of the shares over its par
value.
___________________________17. Those mentioned in the Articles of Incorporation as originally forming and
composing the corporation.
___________________________18. Those who undertakes to dispose of the shares of stock of the corporation to the
genial public.
___________________________19. An artificial being, created by operation of law, having rights of succession, and the
powers, attributes and properties expressly authorized by law or incident to its existence.
___________________________20. Corporation organized under Philippine laws.

II.TRUE OR FALSE. Write TRUE if the statement is correct, if not correct, write FALSE.

_________1. Any individual shareholder in a corporation may be held liable for debts incurred by the corporation.
_________2. All corporations issue shares of stock and are either public or private.
_________3. A corporation has continuity of existence which permits the business to continue regardless of changes in
ownership or the death of a shareholder.
_________4. Shares of stock cannot be transferred without the consent of the other shareholders.
_________5. A corporation can come into existence by mere agreement of the parties as in the case of a partnership.
_________6. All incorporator are subscribers but a subscriber need not be an incorporator.
_________7. A corporation or a partnership can be a corporator but not an incorporator.
_________8. Shareholders may be natural or juridical persons.
_________9. A shareholder has the right to transact business in the name of the corporation.
________10. All shareholders are entitled to share in the distribution of profits of the corporation.
________11. Shareholders of a corporation elect the Board of Directors.
________12. There is a lesser degree of governmental control and supervision in a corporation than in a partnership.
________13. The Board of Directors is entrusted with the management of the corporation.
________14. All corporations are formed to generate profits.
________15. The law provides that subscribers can receive their certificate of stocks only when their subscriptions are
fully paid.
________16. Retained Earnings has normal credit balance.
________17. By-laws are synonymous with Articles of Incorporation.
________18. A corporation enjoys the right of succession.
________19. A corporation has a personality separate from its individual owners.
________20. It is easier to organize a corporation than a partnership.
III. Mariel Corporation was organized on Jan 15, 2017. It was authorized to issue 50,000 Preference shares, par value P50
per share and 100,000 Ordinary shares, par value P20 per share. The following transactions took place during the year:

Jan 15 – The incorporator subscribed to 12,500 preference shares and 25,000 ordinary shares, all at par value. A 25%
down payment on these subscriptions were paid by the incorporators. (Record separately the subscriptions to ordinary
and preference shares).

Feb 1 – Issued 5,000 preference shares for cash at P65 per share.

March 15 – Issued 10,000 ordinary shares for property and equipment valued at P280,000.

April 4 – Collected the balance of the incorporators who subscribed to 12,500 preference shares on Jan 15.
Stock certificates for the fully-paid preference shares were issued.

June 10 – Issued 5,000 ordinary shares for organization expenses valued at P120,000.

Sept 1 – Received subscriptions to 4,000 preference shares at P60 per share. A 20% down payment was received on this
subscription.

Dec 31 – Net income of P400,000 was earned for the year.

Required: Prepare journal entries with explanations to record the above transactions using memorandum method.

IV. On Dec. 31, 2017, the ledger accounts of Cebu Corporation have the following balances:

Cash P350,000
Accounts Receivable 450,000
Merchandise Inventory 1,000,000
Property and Equipment 600,000
Accounts Payable 100,000
Loan Payable 300,000
Ordinary Shares, P250 par value, 50,000 shares authorized. 1,500,000
Subscribed Ordinary Shares 80,000
Subscription Receivable 40,000
Share Premium 160,000
Retained Earnings 300,000

Required: Prepare a balance sheet for Cebu Corporation on Dec. 31, 2017.
Accounting 12 – SET A Name:________________________________
FINAL EXAM Section:____________Score:_____________

I.MATCHING TYPE. Write the LETTER of the word or group of words that matches the numbered statements below:

A. By-laws. G. Stock certificate. M. Legal capital

B. Incorporators. H. Par value stock. N. Retained earnings
C. Shareholders. I. Ordinary shares. O. Dividends
D. Solvent partner. J. Right of offset. P. Partnership
E. Members. K. Pre-emotive right. Q. Realization
F. Liquidation. L. Deficient partner. R. Insolvent partner

_________1. A partner whose personal assets are more than his personal liabilities.
_________2. A business owned by two or more persons who contributed money, property or industry to a common
fund to gain profits and divide it among themselves.
_________3. A class of stock which exercises no special preference over other classes of stock.
_________4. Evidence of ownership of a share of stock.
_________5. Those mentioned in the Articles of Incorporation as originally forming and composing the corporation.
_________6. Rules of action adopted by the corporation for its internal government and for the government of its
officers, stockholders or members.
_________7. Owners of a non-stock corporation.
_________8. Account used to record net income (loss) from operation of a corporation.
_________9. Portion of net income distributed to shareholders.
________10. A partner with a negative capital balance after distribution of loss from realization.
________11. Conversion of non-cash assets into cash during liquidation.
________12. The right of a partner to apply his loan balance to the partnership against his capital deficiency.
________13. The process of winding up the business operation which includes sale of non-cash assets and payment
of claims against the partnership.
________14. Owners of a stock corporation.
________15. Right to buy additional shares at time of issuance of new shares by the corporation.

II.TRUE OR FALSE: Write TRUE if the statement is correct, write FALSE if the statement is not correct.

_________1. If the partnership agreement is silent as to the distribution of loss, same shall be divided in the same
manner as profits.
_________2. A partnership agreement cannot stipulate that one partner shall receive no share in profits or losses.
_________3. Provision for salaries and interest on capital balances will not be given to partners if operation results to a
loss.
_________4. The Board of Directors is entrusted with the management of the corporation.
_________5. All corporations are formed to generate profits.
_________6. Retained Earnings has normal credit balance.
_________7. By-laws are synonymous with Articles of Incorporation.
_________8. A corporation enjoys the right of succession.
_________9. A corporation has a personality separate from its individual owners.
________10. It is easier to organize a corporation than a partnership.
________11. Bankruptcy is among the reasons why a partnership is dissolved.
________12. In liquidation, the partnership continues to operate.
________13. Partners must be paid first before payment to creditors.
________14. A deficient partner has a debit balance in his capital account.
________15. In the exercise of right-of-offset, the amount of the offset the amount of the loan or the deficiency,
whichever is lower.
III. SHORT PROBLEMS: Write your answers in the space provided for.

1. Mayra and Maysa are partners sharing profits and losses 2:3, respectively. Prepare entry to record the
distribution of profit or loss under each of the following assumptions:

a. Net income of P60,000.______________________________________________________________________

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

b. Net loss of P100,0000_______________________________________________________________________

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

2. Partners Lindy and Sarah sell electronic equipment and supplies. They want to expand their business and decided
to admit Joy the partnership. Lindy capital is P200,000 while Sarah capital is P160,000; they share profits and
losses as follows: 60% for Lindy and 40% for Sarah.

Prepare the entry to record the admission of Joy under each of the following assumptions:

a. Joy directly purchased a one-fourth interest from Lindy and Sarah for P100,000. No need to prepare cash
distribution schedule.

_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________

b. Joy invested P60,000 for a one-fifth interest in the partnership. Total agreed capital of the partnership is
P420,000. No need to show computations.

_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________

c. Joy invested cash of P100,000 and an equipment with a fair market value of P50,000.

_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
 IV. The following balance sheet is prepared for the partnership of Lanie, Mara and Nancy on March 31, 2018 just
before liquidation. Lanie, Mara and Nancy share profits and losses 3:5:2, respectively.

Cash P60,000 Liabilities P220,000

Non -cash assets. 540,000. Lanie, Loan 20,000
Nancy, Loan. 10,000
Lanie, Capital 240,000
Mara, Capital 90,000
Nancy, Capital. 20,000
Total Assets P600,000. Total Liabilities & Partners’ Capital P600,000

The partners decided to liquidate their business on April, 2018 and accordingly sold their non-cash assets for

Required: Prepare a Statement of Liquidation and journal entries to record the liquidation assuming that the non-cash
assets were sold for P300,000 and that all deficient partners are insolvent.

V. Granex Corporation was organized on March 15, 2018 and was authorized to issue 100,000 shares Preference, par
value P200 per share and 200,000 ordinary shares, par value P100 per share. The following transactions were then
completed during the rest of the year:

March 15 – The incorporators subscribed to 25,000 preference shares at par value. A 25% down payment accompanied
the subscriptions.

March 15 – Other incorporators were issued 50,000 ordinary shares for cash at P110 per share.

May 1 – 7,500 preference shares were subscribed at par value.

May 5 – 30% of the subscription price was collected from the May 1 subscribers.

June 10 – Issued 10,000 ordinary shares in exchange for property and equipment valued at P1,200,000.

July 1 – Issued 1,000 preference shares in payment for organization expenses valued at P210,000.

Aug 1 – Collected the balance of the incorporators who subscribed to ordinary shares on March 15.
Issued stock certificates for the fully-paid shares.

Dec 31 – Recorded net income of P300,000 for the year.

Required: Prepare journal entries with explanations to record the above transactions using memorandum method.

End… Good luck!!!

Note: Write your contact number on top of your name in the first page. If you receive a message to take a
removal exam, please don’t fail to take such exam on schedule. Failure to do so would mean a grade of 5.0.
If you don’t receive a message, it doesn’t mean you passed the subject, it means either Pass or Fail.
Accounting 12 – SET B Name:________________________________
FINAL EXAM Section:____________Score:_____________

I.TRUE OR FALSE: Write TRUE if the statement is correct, write FALSE if the statement is not correct.

_________1. The Board of Directors is entrusted with the management of the corporation.
_________2. All corporations are formed to generate profits.
_________3. Retained Earnings has normal credit balance.
_________4. By-laws are synonymous with Articles of Incorporation.
_________5. A corporation enjoys the right of succession.
_________6. A corporation has a personality separate from its individual owners.
_________7. It is easier to organize a corporation than a partnership.
_________8. Bankruptcy is among the reasons why a partnership is dissolved.
_________9. In liquidation, the partnership continues to operate.
________10. Partners must be paid first before payment to creditors.
________11. A deficient partner has a debit balance in his capital account.
________12. In the exercise of right-of-offset, the amount of the offset the amount of the loan or the deficiency,
whichever is lower.
________13. If the partnership agreement is silent as to the distribution of loss, same shall be divided in the same
manner as profits.
________14. A partnership agreement cannot stipulate that one partner shall receive no share in profits or losses.
________15. Provision for salaries and interest on capital balances will not be given to partners if operation results to a
loss.

II.MATCHING TYPE. Write the LETTER of the word or group of words that matches the numbered statements below:

A. By-laws. G. Stock certificate. M. Legal capital

B. Incorporators. H. Par value stock. N. Retained earnings
C. Shareholders. I. Ordinary shares. O. Dividends
D. Solvent partner. J. Right of offset. P. Partnership
E. Members. K. Pre-emotive right. Q. Realization
F. Liquidation. L. Deficient partner. R. Insolvent partner

_________1. Rules of action adopted by the corporation for its internal government and for the government of its
officers, stockholders or members.
_________2. Owners of a non-stock corporation.
_________3. Account used to record net income (loss) from operation of a corporation.
_________4. Portion of net income distributed to shareholders.
_________5. A partner with a negative capital balance after distribution of loss from realization.
_________6. Conversion of non-cash assets into cash during liquidation.
_________7. The right of a partner to apply his loan balance to the partnership against his capital deficiency.
_________8. The process of winding up the business operation which includes sale of non-cash assets and payment
of claims against the partnership.
_________9. Owners of a stock corporation.
________10. Right to buy additional shares at time of issuance of new shares by the corporation.
________11. A partner whose personal assets are more than his personal liabilities.
________12. A business owned by two or more persons who contributed money, property or industry to a common
fund to gain profits and divide it among themselves.
________13. A class of stock which exercises no special preference over other classes of stock.
________14. Evidence of ownership of a share of stock.
________15. Those mentioned in the Articles of Incorporation as originally forming and composing the corporation.
III. SHORT PROBLEMS: Write your answers in the space provided for.

3. Mayra and Maysa are partners sharing profits and losses 2:3, respectively. Prepare entry to record the
distribution of profit or loss under each of the following assumptions:

c. Net income of P50,000.______________________________________________________________________

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

d. Net loss of P80,000_______________________________________________________________________

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

4. Partners Lindy and Sarah sell electronic equipment and supplies. They want to expand their business and decided
to admit Joy the partnership. Lindy capital is P200,000 while Sarah capital is P160,000; they share profits and
losses as follows: 60% for Lindy and 40% for Sarah.

Prepare the entry to record the admission of Joy under each of the following assumptions:

d. Joy directly purchased a one-fourth interest from Lindy and Sarah for P105,000. (No need to prepare cash
distribution schedule).

_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________

e. Joy invested P60,000 for a one-sixth interest in the partnership. Total agreed capital of the partnership is
P420,000. (No need to show computations).
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________

f. Joy invested cash of P95,000 and an equipment with a fair market value of P50,000.

_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
IV. The following balance sheet is prepared for the partnership of Lanie, Mara and Nancy on March 31, 2018 just before
liquidation. Lanier, Mara and Nancy share profits and losses 3:5:2, respectively.

Cash P60,000 Liabilities P220,000

Non -cash assets. 540,000. Lanie, Loan 20,000
Nancy, Loan. 10,000
Lanie, Capital 240,000
Mara, Capital 90,000
Nancy, Capital. 20,000
Total Assets P600,000. Total Liabilities & Partners’ Capital P600,000

The partners decided to liquidate their business on April, 2018 and accordingly sold their non-cash assets.

Required: Prepare a Statement of Liquidation and journal entries to record the liquidation assuming that the non-cash
assets were sold for P320,000 and that all deficient partners are insolvent.

V. Granex Corporation was organized on March 15, 2018 and was authorized to issue 100,000 shares Preference, par
value P200 per share and 200,000 ordinary shares, par value P100 per share. The following transactions were then
completed during the rest of the year:

March 15 – The incorporators subscribed to 25,000 preference shares at par value. A 25% down payment accompanied
the subscriptions.

March 15 – Other incorporators were issued 50,000 ordinary shares for cash at P110 per share.

May 1 – 7,500 preference shares were subscribed at par value.

May 5 – 30% of the subscription price was collected from the May 1 subscribers.

June 10 – Issued 10,000 ordinary shares in exchange for property and equipment valued at P1,200,000.

July 1 – Issued 1,000 preference shares in payment for organization expenses valued at P210,000.

Aug 1 – Collected the balance of the incorporators who subscribed to ordinary shares on March 15.
Issued stock certificates for the fully-paid shares.

Dec 31 – Recorded net income of P300,000 for the year.

Required: Prepare journal entries with explanations to record the above transactions using memorandum method.

End… Good luck!!!

Note: Write your contact number on top of your name in the first page. If you receive a message to take a
removal exam, please don’t fail to take such exam on schedule. Failure to do so would mean a grade of 5.0.
If you don’t receive a message, it doesn’t mean you passed the subject, it means either Pass or Fail.