Quiz #1
Partnership Formation
I. Multiple Choice:
1. A contract whereby two or more persons bind themselves to conribute money, property, or
industry into a common fund with the intention of dividing the profits among themselves.
A. Partnership B. Marriage C. Sole proprietorship D. Corporation
2. A partner who contributes his work, labor or industry to the common fund of the partnership
is called
A. Limited partner B. Capitalist partner C. Industrial partner D. General partner
3. The partner who is liable for the payment of partnership debts to the extent of his separate
property after the partnership assets are exhausted is called
A. Limited partner B. Capitalist partner C. Industrial partner D. General partner
4. One who takes charge of the winding up of partnership affairs upon dissolution:
A. Silent partner B. Dormant partner C. Ostensible partner D. liquidating partner
5. In a limited partnership,
A. The general partners have limited liability.
B. All partners have limited liability.
C. All but the general partners have limited liability.
D. All but the general partners have unlimited liability.
Luffy is a sole proprietor who invested his grocery when he formed a partnership with Zoro. The
following are the assets and liabilities of the grocery:
Cash P 50,000
Merchandise 30,000 (book value)
20,000 (market value)
Fixed Assets (P100,000 less accumulated
Depreciation P10,000) 90,000 (book value)
50% of cost (market value)
Accounts Payable 20,000
Accrued Expenses 7,000
6. His capital account should be credited for
A. P83,000 B. P86,000 C. P93,000 D. P120,000
Items 7 to 10 are based on the following:
Gon and Killua enter into a partnership agreement in which Gon is to have a 60% interest in
capital and profits. Gon contributes the following:
Land P 500,000 ?
Building 5,000,000 Fair value of which is 60% of its cost.
Equipment 1,000,000 Fair value of which is 75% of its cost.
There is a P1,000,000 mortgage on the building which the partners agree to assume. Killua
contributes cash of P2,500,000 and the partners agreed that this should be his capital credit.
7. How much should be the total agreed equity?
Partnership Formation
I. Multiple Choice:
1. A contract whereby two or more persons bind themselves to conribute money, property, or
industry into a common fund with the intention of dividing the profits among themselves.
A. Partnership B. Marriage C. Sole proprietorship D. Corporation
2. A partner who contributes his work, labor or industry to the common fund of the partnership
is called
A. Limited partner B. Capitalist partner C. Industrial partner D. General partner
3. The partner who is liable for the payment of partnership debts to the extent of his separate
property after the partnership assets are exhausted is called
A. Limited partner B. Capitalist partner C. Industrial partner D. General partner
4. One who takes charge of the winding up of partnership affairs upon dissolution:
A. Silent partner B. Dormant partner C. Ostensible partner D. liquidating partner
5. In a limited partnership,
A. The general partners have limited liability.
B. All partners have limited liability.
C. All but the general partners have limited liability.
D. All but the general partners have unlimited liability.
Luffy is a sole proprietor who invested his grocery when he formed a partnership with Zoro. The
following are the assets and liabilities of the grocery:
Cash P 50,000
Merchandise 30,000 (book value)
20,000 (market value)
Fixed Assets (P100,000 less accumulated
Depreciation P10,000) 90,000 (book value)
50% of cost (market value)
Accounts Payable 20,000
Accrued Expenses 7,000
6. His capital account should be credited for
A. P83,000 B. P86,000 C. P93,000 D. P120,000
Items 7 to 10 are based on the following:
Gon and Killua enter into a partnership agreement in which Gon is to have a 60% interest in
capital and profits. Gon contributes the following:
Land P 500,000 ?
Building 5,000,000 Fair value of which is 60% of its cost.
Equipment 1,000,000 Fair value of which is 75% of its cost.
There is a P1,000,000 mortgage on the building which the partners agree to assume. Killua
contributes cash of P2,500,000 and the partners agreed that this should be his capital credit.
7. How much should be the total agreed equity?
