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(Solution Answers) Advanced Accounting by Dayag, Version 2017 - Chapter 1 (Partnership) - Answers On Multiple Choice Computation #21 To 25

1. The document contains multiple choice problems and their solutions. Problem 21 involves the settlement of capital accounts between two partners. Problem 22 calculates one partner's capital after various adjustments. Problem 23 lists the assets invested by a partner. Problem 24 determines the merchandise one partner must invest. Problem 25 finds the cash one partner needs to invest.

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John Carlos Doringo
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557 views1 page

(Solution Answers) Advanced Accounting by Dayag, Version 2017 - Chapter 1 (Partnership) - Answers On Multiple Choice Computation #21 To 25

1. The document contains multiple choice problems and their solutions. Problem 21 involves the settlement of capital accounts between two partners. Problem 22 calculates one partner's capital after various adjustments. Problem 23 lists the assets invested by a partner. Problem 24 determines the merchandise one partner must invest. Problem 25 finds the cash one partner needs to invest.

Uploaded by

John Carlos Doringo
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 1

Multiple Choice Problems


21. a
Agreed Capital Contributed Capital Settlement
OO P148,437.50 (50% x P296,875) P 130,900 P 17,537.50
PP 89,062.50 (30% x P296,875) 106,600 (17,537.50)

Therefore, OO will pay PP P17,537.50

22. c
Total partnership capital (P113,640/1/3) P 340,920
Less DD’s capital 113,640
CC’s capital after adjustments P 227,280
Adjustments made:
Allowance for doubtful account (2% x P96,000) 1,920
Merchandise inventory ( 16,000)
Prepaid expenses ( 5,200)
Accrued expenses 3,200
CC’s capital before adjustments P 211,200

23. a
Assets invested by CC:
Cash:
Capital P211,200
Add Accounts payable 49,600
Total assets (excluding cash) 260,800
Less Noncash assets (96,000 + P144,000) 240,000 P20,800
Accounts receivable (96,000 – P1,920) 94,080
Merchandise inventory 160,000
Prepaid expenses 5,200 P 280,080
Cash invested by DD 113,640
Total assets of the partnership P 393,720

24. d
Total partnership capital (P180,000/60%) P 300,000

GG’s Capital (P300,000 x 40%) P 120,000


Less Cash investment 30,000
Merchandise to be invested by GG P 90,000

25. a
Adjusted capital of JJ:
Total assets (at agreed valuations) P 180,000
Less Accounts payable 48,000 P 132,000
Required capital of JJ 180,000
Cash to be invested by JJ P 48,000

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