The home oflce sends merchandise to the branch at a billed price of 150%. In the separate
books of the
home oflce, the allowance for overvaluation account had a balance of P60,000. In the C. 45,000
combined
End, Inv - BR 40k
statement, the ending inventory of the branch was P40,000 of which P10,000 came from
Outsider (10k)
outsiders.
End, Inv - HO 30K (@cost)
What is the overstatement of the cost of goods sold of the branch from the home oflce
merchandise? Bal before Adj. 60k
A. 20,000 EI, (15k) [30k*50%]
B. 50,000 Realized Profit 45k
C. 45,000
D. 5,000
Which of the following statements regarding Partnership Accounting is FALSE?
A. A partnership loan that was made from a partner who has a capital deficiency may be ottset
against
the debit balance in his capital account.
B. Gains and losses incurred at liquidation are distributed to the partners using the residual
profit and
loss sharing ratios when these amounts represent profits and losses from prior periods that
C.
would
have been shared using the remainder profit and loss ratios.
In computing the basis for interest, only DIRECTLY attecting capital balances
C. In dividing the profit or loss to the partners, all types of withdrawals made by a partner
1. Additional Investments
attects the
2. Permanent Withdrawal
computation of the ending capital balance used as a basis in providing an allowance as to
interest.
D. When partners agree to make their capital ratio in conformity with their profit and loss ratio
using
the transfer of capital method, the partner whose agreed capital is lower than his con-
tributed
capital, may receive a payment from the
At the time of corporate liquidation, which of the following unsecured claims with priority shall
be C.
settled first?
A. Liability for taxes 1. Salaries
B. Liability for corporate crime 2. Liquidation & Admin Expenses
C. Liability for employee benefits 3. Taxes
D. Liability for corporate torn
In every corporation liquidation, which type of credit will not share from the free assets of the
corporation? C.
A. Unsecured claims with priority
B. Unsecured claims without priority GR: ALL ASSETS no liabilities pledge to them. Also included EXCESS ASSETS from fully secured
C. Fully secured claims creditors
D. Partially secured claims
Soon-to-be partners, A and B will contribute the following: A will contribute cash, P750,000,
and B
will contribute a Building with a carrying amount of P500,000 and an agreed value of
P600,000. The
building has a mortgage in the amount of P50,000, but it will be paid personally by B. One
of the
1/2
books of the
home oflce, the allowance for overvaluation account had a balance of P60,000. In the C. 45,000
combined
End, Inv - BR 40k
statement, the ending inventory of the branch was P40,000 of which P10,000 came from
Outsider (10k)
outsiders.
End, Inv - HO 30K (@cost)
What is the overstatement of the cost of goods sold of the branch from the home oflce
merchandise? Bal before Adj. 60k
A. 20,000 EI, (15k) [30k*50%]
B. 50,000 Realized Profit 45k
C. 45,000
D. 5,000
Which of the following statements regarding Partnership Accounting is FALSE?
A. A partnership loan that was made from a partner who has a capital deficiency may be ottset
against
the debit balance in his capital account.
B. Gains and losses incurred at liquidation are distributed to the partners using the residual
profit and
loss sharing ratios when these amounts represent profits and losses from prior periods that
C.
would
have been shared using the remainder profit and loss ratios.
In computing the basis for interest, only DIRECTLY attecting capital balances
C. In dividing the profit or loss to the partners, all types of withdrawals made by a partner
1. Additional Investments
attects the
2. Permanent Withdrawal
computation of the ending capital balance used as a basis in providing an allowance as to
interest.
D. When partners agree to make their capital ratio in conformity with their profit and loss ratio
using
the transfer of capital method, the partner whose agreed capital is lower than his con-
tributed
capital, may receive a payment from the
At the time of corporate liquidation, which of the following unsecured claims with priority shall
be C.
settled first?
A. Liability for taxes 1. Salaries
B. Liability for corporate crime 2. Liquidation & Admin Expenses
C. Liability for employee benefits 3. Taxes
D. Liability for corporate torn
In every corporation liquidation, which type of credit will not share from the free assets of the
corporation? C.
A. Unsecured claims with priority
B. Unsecured claims without priority GR: ALL ASSETS no liabilities pledge to them. Also included EXCESS ASSETS from fully secured
C. Fully secured claims creditors
D. Partially secured claims
Soon-to-be partners, A and B will contribute the following: A will contribute cash, P750,000,
and B
will contribute a Building with a carrying amount of P500,000 and an agreed value of
P600,000. The
building has a mortgage in the amount of P50,000, but it will be paid personally by B. One
of the
1/2
