Polytechnic University of the Philippines

COLLEGE of ACCOUNTANCY and FINANCE

Department of Accountancy Basic Accounting
Sta. Mesa, City of Manila

SIMULATED MIDTERM EXAMINATION

ACCO 2026 Fundamentals of Accounting, Part 2
Academic Year 2013 2014
_________________________________________________________________________________________
General Direction: On the answer sheet provided, shade the letter of the correct answer for each of the following
accounting theories and problems. Each theory is credited for a point each, and each problem is credited for 1.6
points each. Time allotted for this examination is three hours. God bless.
_________________________________________________________________________________________
Part 1 - Multiple Choice Theories, items 1 20
1. A partnership may be dissolved at any time by action of the partners or by operation of law. This describes
the characteristic of a partnership of
a. Limited life
b. Co-ownership of contributed assets
c. Mutual agency
d. Legal entity
e. None of the given choices.
2. A partnership that has complied with all the requirements for its establishment
a. De facto partnership
b. De jure partnership
c. Partnership at will
d. Partnership by estoppel
3. Which of the following statements are correct?
I. A nominal partner is one who is not really a partner, not being a party to the partnership agreement, but
is made liable as a partner for the protection of innocent third persons.
II. A silent partner is one who takes active part in the management of the business but whose connection
with the partnership is concealed or unknown to the public.
III. A capitalist partner is one who contributes capital in cash or property.
a.
b.
c.
d.
e.

Statement I
Statement II
Statements I and II
Statements I and III
All statements are actually correct

4. One which has for its object determinate things, their use or fruits, or a specific undertaking of the exercise
of a profession or vocation best describes
a. Universal partnership
b. General partnership
c. Limited partnership
d. Particular partnership
5. When two persons formed a partnership, and one of them is a sole proprietor, which of the following
statements is correct when the books of the sole proprietor will still be used by the partnership?
a. The sole proprietor should adjust and close his books.
b. The sole proprietor should close his books and record the individuals contribution.
c. The sole proprietor should adjust his books and record the individuals contribution.
d. The partnership must open a new set of books.
6. When partners are credited using the bonus approach,
a. Each partner is credited equally by the amount of capital divided among them.
b. Each partner is credited by the amount of assets or net assets they have contributed.
c. Each partner will not be credited by their profit or loss ratio, when this ratio is equal division.
d. Each partner will not be credited at the extent of their contributions.

Practice Test ACCO 2026 Midterm Examination

Academic Year 2013-2014 by Kevin Troy M. Chua

7. Two individuals who were previously sole proprietors formed a partnership. Property other that cash which
is part of the initial investment in the partnership would be recorded for financial accounting purposes at
the
a. proprietors book values of the fair value of the property at the date of investment, whichever is higher.
b. proprietors book values of the fair value of the property at the date of investment, whichever is lower.
c. proprietors book values of the fair value of the property at the date of investment.
d. fair value of the property at the date of investment.
8. When the capital credit exceeds the agreed value or fair value of the net assets acquired by the new
partnership from the sole proprietorship, the excess
a. is credited to the partners equally during profit division or after formation.
b. is normally set aside in the form of cash for the partnerships emergency expenses.
c. is treated as goodwill, and its amortization is prohibited in accordance with IFRS 3, Business
Combinations.
d. will not be given any treatment during partnership formation.
9. It is a characteristic of a partnership wherein property contributed to the partnership is owned by the
partnership by virtue of its legal personality.
a. Co-ownership of contributed assets
b. Mutual Agency
c. Unlimited Liability
d. Mutual participation in profits
10. During the profit division of a partnership, the terms and conditions of profit division stated that the interest
in the beginning capital balances should be in priority over salary contribution. After distributing this
interest, the amount remained is still sufficient to be distributed to the partners, but are not enough to cover
the whole amount of salaries. This remaining amount should be
a. divided among the partners equally.
b. divided among the partners through their profit or loss ratio.
c. divided among the partners using the ratio in respect to their salaries.
d. divided among the partners using the ratio in respect to their beginning capital balances.
11. The partnership obtained a profit for the period. Salaries were distributed, and so are the interests on
beginning capital balances. The next step to be done is to provide bonus to one of the partners. After
calculating the bonus and had it given to the partner, the net income became insufficient. What should be
done regarding this matter?
a. Continue to provide the bonus and the insufficiency should be divided among the partners.
b. The bonus should not be given anymore, and the remaining balance to be divided among the partners.
c. The whole amount of profit should be divided among the partners equally.
d. None of the given.
12. In the distribution of partnership profits and losses, which of the following factors should be considered?
a. Services rendered by partners to the partnership
b. Amount of capital contributed to the partnership
c. Entrepreneurial ability of the partners
d. All of the given.
13. Assume that partners Clarise and Therese obtained a net income for the period. When they formed the
partnership, Therese has contributed more than what has Clarise has contributed, but during operations,
Clarise spends more time in the partnership for it to prosper. In which of the following process statements
regarding profit division would be favorable for both Clarise and Therese?
a. Provide Clarise a higher distribution of profit.
b. Provide Therese a higher distribution of profit.
c. Provide Clarise a salary that will compensate the amount of time she has devoted, and provide Therese
an interest in her capital balance that is favorable for her.
d. Provide Clarise a salary that will compensate the amount of time she has devoted, and provide Therese
an interest in her capital balance that is favorable for her. Then, divide any remainder equally.
14. In the admission of a new partner, the total agreed capitalization exceeded the total amount of the
contributed capital. This instance involves a
a. Positive Asset Revaluation on partners admission.
b. Negative Asset Revluation on partners admission.
c. Bonus Method on partners admission.
d. None of the given choices.

Practice Test ACCO 2026 Midterm Examination

Academic Year 2013-2014 by Kevin Troy M. Chua

15. An individual would want to purchase a fourth of the partnership, taking into account an asset revaluation.
Which of the following process statements would be involved in this individuals admission?
a. The total agreed capitalization with the total contributed capital. When they are equal, then there is
actually no asset revaluation.
b. Deduct the capital of the old partnership from the capital of the new partnership. This difference would
be the asset revaluation.
c. The individual should simply pay an amount equal to the share of capital he/she wants in the
partnership.
d. None of the given.
16. During the withdrawal of a partner in a partnership who ceases to be a partner,
a. The partners capital account is credited, and a cash account is debited.
b. The partners capital account is debited, and the drawing account is debited.
c. The partners capital account is debited, and a cash account is credited, equal, higher, or lower than the
amount of the partners contribution.
d. The partners capital account is debited, and a cash account is credited, equal, higher, or lower than the
amount of the partners contribution. Any amount of difference may be accounted for as bonus or asset
revaluation.
17. During liquidation, when noncash assets are sold in an amount higher than its value, a gain on realization
occurs. This should be treated
a. as a decrease in the liabilities to be paid by the partnership during liquidation.
b. as an increase in cash of the partnership, with no relation to the capital accounts of the partners.
c. as an increase in the capital accounts of the partners, with no relation to cash.
d. as an increase to both the cash account and the capital accounts of the partners before payment of
liabilities.
18. During the process of liquidation, one of the partners had a debit balance in the capital account. To
eliminate this debit balance before cash distribution,
a. the partner must invest a sufficient amount of cash, whether the partner is solvent or insolvent.
b. the loan payable to the partner is to be offset to the debit balance, when the partner has the right to
offset.
c. the partner must invest a sufficient amount of cash when the partner is insolvent.
d. the loan payable to the partner is to be offset to the debit balance, even when the partner no right to
offset.
19. Partnership dissolution, with liquidation to follow, may not be caused by which of the following factors?
a. The accomplishment of the purpose for which the partnership was organized.
b. Bankruptcy of the firm.
c. Admission of a new partner by investment.
d. Mutual agreement amount the partners to liquidate.
20. The legal right to apply part or all of the amount owing to a partner on a loan balance against deficiency in
his capital account resulting from losses in the process of liquidation.
a. Right of Preemption
b. Right of Offset
c. Right of Gains
d. Right of Interest
Part 2 - Multiple Choice Problems, items 21 70
21. Information regarding two partnerships at given to you for your audit. Hillsong Partnership has current
assets of P165,000 and noncurrent assets of P185,000. Planetshakers Partnership has total assets of
P930,000. The liabilities of Planetshakers is twice as much as Hillsong, and the partners equity of
Planetshakers is thrice as much as Hillsong. How much does Hillsong owe creditors?
a. P100,000
b. P120,000
c. P150,000
d. P170,000
e. insufficient information

Practice Test ACCO 2026 Midterm Examination

Academic Year 2013-2014 by Kevin Troy M. Chua

22. Using the information in item 21, what is the amount of partners equity of Planetshakers Partnership?
a. P560,000
b. P630,000
c. P690,000
d. P720,000
e. insufficient information
23. Using the information in item 21, how much does Planetshakers owe creditors?
a. P240,000
b. P290,000
c. P320,000
d. P350,000
e. insufficient information
24. In the formation of the partnership, three partners were credited for an equal amount of P250,000. Partner
1 contributed cash of P100,000 and equipment of P200,000. Partner 3 contributed cash of P200,000 and an
equipment. If the full investment approach will be used, he will be credited at P250,000. How much bonus
was received by Partner 2 when the bonus method was used?
a. P10,000
b. P25,000
c. P40,000
d. P50,000
25. Daniella and Troy are combining their separate businesses to form a partnership. Presented here are the
Statements of Financial Position elements in alphabetical form that they will bring into the partnership,
given at book values, and fair market values.

Accounts Payable
Accounts Receivable
Building (net)
Cash
Equipment (net)
Notes Payable
Office Supplies
Prepaid Insurance

Daniella
BV
P 32,400
242,000
624,000
345,000
224,000
100,000
16,500
14,000

FMV
P 32,400
242,000
652,000
345,000
250,000
100,000
18,000
14,000

Troy
BV
P 88,000
386,000
584,000
249,000
386,000
90,000
19,000
18,500

FMV
P 88,000
386,000
600,000
249,000
389,000
90,000
18,600
18,500

The partners agreed that in the formation of the partnership, the total capital of the firm must be
P3,500,000 to be credited equally among Daniella and Troy. How much cash should Daniella contribute
aside from P345,000 in order for the condition to be met?
a. P247,650
b. P266,900
c. P314,150
d. P361,400
26. Using the information in item 25, should the total capital of the firm be P3,000,000 and to be credited to
the partners at 40:60, how much additional cash should Troy contribute?
a. P292,600
b. P316,900
c. P361,400
d. P432,700
27. Using the information in items 25 and 26, how much reduction should Daniella make in any asset or cash
for the condition in item 26 (40:60) be met?
a. P188,600
b. P283,100
c. P327,600
d. insufficient information

Practice Test ACCO 2026 Midterm Examination

Academic Year 2013-2014 by Kevin Troy M. Chua

28. Partners Eunjung, Hyomin, and Jiyeon formed a partnership in which their contribution totaled P550,000.
They are credited at 25:35:40. Eunjung contributed cash and equipment. Hyomin invested cash, equipment,
and supplies, as well as Jiyeon. If Eunjung contributed cash of P80,000,
a. She also contributed supplies worth P7,500.
b. She also contributed equipment worth P57,500.
c. She also contributed supplies worth P57,500.
d. She also contributed equipment worth P30,000.
29. Hanjin, Minjin, and Shinjin decided to form a partnership. Shinjin is a sole proprietor with the following
Statement of Financial Position elements.
Cash
P 395,000
Accounts Receivable
100,000
Office Supplies
5,000
Building (net)
500,000
Furniture
45,000
Accounts Payable
25,000
Notes Payable
120,000
Utilities Payable
30,000
It was seen that the building is under depreciated by P10,000 and Allowance for Uncollectible Accounts
must be set up at P3,500. Minjin will contribute cash of P450,000 and Hanjin will contribute equipment that
will help the business in their operations, with a fair market value of P295,000 and an agreed value of
P360,000. Using full investment approach, how much capital will be credited to Shinjin?
a. P900,000
b. P870,000
c. P860,000
d. P856,500
30. Using the information in item 29, how much capital would be credited to Hanjin using bonus approach?
a. P360,000
b. P450,000
c. P555,500
d. P856,500
31. Schai Sigrist and Coleen Garcia formed a partnership which they called Sigrist-Garcia Partnership. Prior to
the formation, Schai Sigrist was a sole proprietor engaged in merchandising. Presented here are the
Statements of Financial Position of Schais business and after the formation of the partnership.
Sigrist
Merchandising

Sigrist-Garcia
Partnership

ASSETS
Cash
Accounts Receivable
Supplies
Merchandise Inventory
Prepaid Insurance
Building (net)
TOTAL ASSETS
LIABILITIES and CAPITAL
Accounts Payable
Notes Payable
Salaries Payable
Sigrist, Capital
Garcia, Capital
TOTAL LIABILITIES and CAPITAL

P 856,000
324,500
34,600
292,000
24,000
664,780
P2,195,880

P1,206,000
298,000
34,600
337,000
24,000
664,780
P2,564,380

P 163,940
250,000
86,500
1,695,440

P 163,940
250,000
86,500
1,668,940
395,000
P2,564,380

P2,195,880

In the partnership formation, Coleen Garcia contributed cash and merchandise inventory. These two
accounts were not subject to any adjustments in Schai Sigrists books prior to the formation. How much
cash was contributed by Coleen Garcia?
a. P266,000
b. P249,000
c. P350,000
d. P459,000
Practice Test ACCO 2026 Midterm Examination
Academic Year 2013-2014 by Kevin Troy M. Chua

32. Using the information in item 31, how much adjustment and of what effect happened in Schai Sigrists
capital account?
a. P 26,500 debit
b. P 26,500 credit
c. P368,500 debit
d. P368,500 credit
33. Shaira and Chin are two individuals who want to form a partnership. They agreed that in the formation of
the firm, they should be able to have a total capital which will amount to P1,000,000. They have also
agreed that they will be crediting it at 60:40. If Shaira will contribute cash of P250,000, and Chin will
contribute cash of P350,000, how much additional noncash assets should Shaira contribute when Chin
contributed P50,000 worth of equipment?
a. Noncash assets with the same amount of Chins cash.
b. Noncash assets worth P400,000.
c. Noncash assets worth 60% of Shairas capital.
d. Noncash assets worth P250,000.
34. Brian Houston and Bobbie Houston decided to form Pastors Partnership. Brian was a sole proprietor prior to
partnership formation, with the following Statement of Financial Position elements.
Cash
P290,000
Accounts Receivable
38,000
Merchandise Inventory
105,000
Building (net)
300,000
Equipment (net)
45,000
Accounts Payable
36,000
Notes Payable
50,000
Prior to partnership formation, the following adjustments should be made.
a. Allowance for Uncollectible Accounts must be set up at P4,500.
b. Merchandise Inventory is overvalued by P8,000.
c. The building is over depreciated by P12,500.
Bobbie will contribute cash amounting to P188,000 and merchandise inventory of P100,000. How much
total assets must be reported at the immediate preparation of the Statement of Financial Position of the
partnership?
a. P 765,500
b. P 778,000
c. P1,066,000
d. P1,266,000
35. Using the information in item 34, should partners be credited at bonus approach, how much capital would
then be credited to Brian?
a. P346,000
b. P440,000
c. P490,000
d. P502,000
36. Sophomore Partnership with partners Catleen, Ann Louise, and Tracey obtained a net profit for the period.
They have beginning capital balances of P300,000, P250,000, and P200,000 respectively. In the division of
profits, each partner will be given salaries of P25,000, P20,000, and P30,000 respectively. Interest on
beginning capital balances will also be provided at 5%. Catleen will also be given a bonus of 10% after tax
and before bonus. After all distributions, P9,000 remained which will be distributed equally among the
partners. The net income of Sophomore Partnership amounts to
a. P144,500
b. P135,000
c. P121,500
d. P112,500
37. Using the information in item 36, the share of partner Ann Louise in the profit amounts to
a. P56,500
b. P43,000
c. P35,500
d. P22,000
e. answer not given
Practice Test ACCO 2026 Midterm Examination
Academic Year 2013-2014 by Kevin Troy M. Chua

38. Fides, Erika, and Jhobell of Seven Partnership have beginning capital balances of P500,000, P400,000, and
P300,000 respectively. The firm has obtained a net profit of P112,000. Salaries of P15,000, P20,000, and
P25,000 will be given to each partner respectively, and interest at 3% of the beginning capital balances
would be allowed in profit distribution. Erika will be given 12% bonus before tax and before bonuses. Any
remaining amount will be divided to each partner at 3:1:1. The share of Fides in the net profit amounts to
a. P26,040
b. P28,080
c. P35,200
d. P39,600
39. Using the information in item 38, and assuming Jhobell has withdrawn an amount of P 15,000 for the
period, her capital balance at the end of the period will be
a. P318,360
b. P320,200
c. P322,200
d. P335,560
e. insufficient information
40. Using the information in item 38, should Erika not be given a bonus, the share of each partner in the net
income would be
a. P28,080; P50,560; P33,360
b. P28,080; P35,200; P48,720
c. P39,600; P35,200; P37,200
d. P39,600; P50,560; P21,840
e. answer not given
41. Generation Partnership, with partners Seohyun, Jessica, and Tiffany obtained a net income for the period.
Their beginning capital balances are P450,000, P350,000, and P500,000 respectively. Each partner will be
given salaries of P20,000, P15,000, and P30,000, and also interest of 5% on their beginning capital
balances. Bonus will also be given to Jessica at 17% of profit after tax but before bonus. After all of these
distributions, each partners received an equal amount of P12,000 as remainder. How much net income was
obtained by Generation Partnership?
a. P166,000
b. P200,000
c. P242,000
d. P250,000
42. Using the information in item 41, and assuming each partner has withdrawn P25,000, the total capital
balance of the partnership at the end of the period will be
a. P1,391,000
b. P1,425,000
c. P1,441,000
d. P1,475,000
43. Using the information in item 41, the share of Jessica in the net income is
a. P44,500
b. P78,500
c. P80,450
d. P90,000
44. The net income of By Your Side Partnership, a partnership with three partners, will provide 60% of it for
salaries and 30% for interests. No partner will be given any bonus. After distribution, P5,000 remained
equally for each partner. 5% interest on their beginning capital balances was allowed, and the second and
third partner had P20,000 and P15,000 respectively as interests. Each partner has equal salaries with each
other. Lastly, each partner has withdrawn P20,000 from the firm. How much is the share of the third partner
in the net income?
a. P45,000
b. P50,000
c. P65,000
d. P80,000
45. Using the information in item 44, the ending capital of the partnership will be
a. P 700,000
b. P 872,000
c. P 990,000
d. P1,030,000
Practice Test ACCO 2026 Midterm Examination
Academic Year 2013-2014 by Kevin Troy M. Chua

46. Using the information in item 44, how much salary was given to the first partner?
a. P 5,000
b. P20,000
c. P30,000
d. answer not given
47. The partnership of Lana and Lian has the following capital balances as of the given months.
January 1, 2013
February 1, 2013
March 1, 2013

P1,250,000
1,570,000
1,800,000

During January, each partner has withdrawn P35,000. P50,000 was withdrawn by each partner during
February. Lanas share in net income during January is three times higher than that of February. Lians share
in net income during February is twice as higher than that of January. How much is Lanas share in January
profit?
a. P120,000
b. P240,000
c. P270,000
d. answer not given
48. Using the information in item 47, how much is Lians share in February profit?
a. P 90,000
b. P120,000
c. P240,000
d. P270,000
49. Using the information in item 47, should 10% of profit after tax but before bonus on January is given to
Lana, combined salaries and interest for her will be by how much?
a. P231,000
b. P242,000
c. P257,000
d. P266,000
50. Using the information in item 47, should 12% of profit after tax but before bonus on February is given to
Lian, combined salaries and interest for her will be by how much?
a. P196,200
b. P200,400
c. P245,200
d. P289,400
51. Green Leaf Partnership with partners Sachi, Michi, and Chachi has capital balances of P350,000, P150,000,
and P200,000 respectively. They divide profits and losses proportionate to their capital balances. Jichi wants
to enter the partnership by purchasing a fourth interest in the partnership paying P 200,000 taking into
account an asset revaluation. How much is the capital balance of Sachi after Jichis admission?
a. P300,000
b. P350,000
c. P400,000
d. P450,000
52. Using the information in item 51, what effect that has happened in Chachis capital account at Jachis
admission?
a. increase of P28,571
b. decrease of P28,571
c. increase of P21,429
d. decrease of P21,429
53. Using the information in item 51, how much, then, is the asset revaluation?
a. P100,000
b. P200,000
c. P300,000
d. P400,000

Practice Test ACCO 2026 Midterm Examination

Academic Year 2013-2014 by Kevin Troy M. Chua

54. Dream High Partnership with partners Suzy, IU, and Eunjung has capital balances of P250,000, P150,000,
and P350,000 respectively. Jiyeon invests P300,000 for a fourth interest in the firm. If the partnership elects
to take positive asset revaluation into account, the new capital structure will be
a. P250,000; P150,000; P350,000; P300,000
b. P300,000; P180,000; P420,000; P300,000
c. P150,000; P150,000; P600,000; P300,000
d. P250,000; P350,000; P300,000, P300,000
55. Using the information in item 54, if the partnership elects to take negative asset revaluation into account,
the capital balance of IU after Jiyeons admission is
a. P100,000
b. P150,000
c. P200,000
d. P250,000
56. Using the information in item 54, if the partnership elects to take bonus method into account, the capital
balance of Eunjung after Jiyeons admission will be
a. P332,500
b. P350,000
c. P367,500
d. P375,000
57. Before the admission of a new partner, the total capital of a partnership with three partners amount to
P650,000. When a new partner is admitted, the capital became P975,000. The new partner invested
P250,000 cash. How much asset revaluation was taken into account?
a. P25,000
b. P60,000
c. P75,000
d. P80,000
58. Using the information in item 57, how much interest was provided for the new partner?
a. 25%
b. 33 1/3%
c. 66 2/3 %
d. answer not given
59. The capital balances of three partners in a partnership amount to P200,000, P100,000, and P200,000. An
individual wants to be admitted into the partnership. How much cash should the individual invest to have a
third interest in the firm?
a. P1,000,000
b. P 750,000
c. P 500,000
d. P 250,000
60. The profit or loss ratio which is proportionate to each partners capital account is 2:4:3. If an individual is
admitted to a partnership, in which his investment provided him 35% interest in the firm, the new profit or
loss percentages will be
a. 22.22%
21.11%
21.67%
35%
b. 14.44%
21.11%
29.45%
35%
c. 22.22%
28.89%
13.89%
35%
d. 14.44%
28.89%
21.67%
35%
61. For This Cause Partnership with partners Angela and Elma, decided to change their profit or loss
percentages. The new profit or loss percentages provide that Angelas percentage must be twice as higher
as the old percentage, and Elmas percentage must be thrice as lower as the old percentage. What is the
new percentage in profit or loss of Elma?
a. 20%
b. 40%
c. 60%
d. 80%
62. Using the information in item 61, the old percentage in profit or loss of Angela is
a. 20%
b. 40%
c. 60%
d. 80%
Practice Test ACCO 2026 Midterm Examination
Academic Year 2013-2014 by Kevin Troy M. Chua

63. In admission of partner by purchase, the following amounts were seen, before and after the admission.
Asset revaluation was also undergone.
Partner A
Partner B

P200,000
300,000

40%
60%

Partner A
Partner B
Partner C

P ?
?
120,000

48%
32%
20%

Charge to partner B in the admission to partner C amounts to

a. P57,600
b. P60,000
c. P72,000
d. P90,000
e. insufficient information
64. Partners Kim, Jin, and Soon of School Partnership has capital balances of P300,000, P400,000, and
P200,000 and divides profits and losses at 40:30:30. Soon is to retire from the partnership and will be paid
P150,000. Asset Revaluation will be used in the withdrawal. The journal entry on Soons withdrawal
includes
a. debit to Soon, Capital at P150,000
b. debit to Jin, Capital at P70,000
c. credit to Other Assets at P166,667
d. credit to Jin, Capital at P50,000
e. answer not given
65. Using the information in item 64, and assuming bonus method will be used in the withdrawal, the capital
balance of Jin after Soons withdrawal will be
a. P421,429
b. P428,571
c. P521,429
d. P528,571
66. For All Youve Done Partnership with partners Miriam, Marty, and Steve decided to liquidate. At the date of
liquidation, the partnership has cash of P150,000 and liabilities of P80,000. The capital balances of the
partners are P80,000, P50,000, and P60,000 and divides profits and losses at 20:40:40. After the liquidation
process, the capital balances of the partners are P88,000, P66,000, and P76,000 respectively, and the cash
remaining were then distributed. At what amount did the noncash assets were sold?
a. P310,000
b. P220,000
c. P160,000
d. P120,000
67. Before the liquidation of Master of Study Partnership, noncash assets amounts to P125,000 and liabilities
amount to P48,000. The partnership has three partners and is sharing interest in the partnership with a ratio
of 2:2:1. The third partners capital before liquidation proportionate to their profit sharing ratio is P22,400.
After the sale of Noncash assets, the capital of the second partner became P64,800, and the cash account
became P210,000. Gain from realization of assets amounts to
a. P 10,000
b. P 20,000
c. P 50,000
d. P125,000
68. Using the information in item 67, the amount to cash before liquidation amounts to
a. P 35,000
b. P125,000
c. P175,000
d. P210,000

Practice Test ACCO 2026 Midterm Examination

Academic Year 2013-2014 by Kevin Troy M. Chua

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69. Before the liquidation of a partnership, the total capital is P500,000, and each partner shares at this amount
proportionately at 2:1:2, which is also their profit or loss ratio. After selling all noncash assets, the second
partners capital account before payment of liabilities became P120,000. If noncash assets amount to
P435,000, at what amount was this sold?
a. P455,000
b. P475,000
c. P535,000
d. P555,000
70. Using the information in item 69, how much will be the capital of the first partner before payment of
liabilities, after the effect of sale of noncash assets?
a. P200,000
b. P220,000
c. P240,000
d. P260,000
- END OF EXAMINATION I can do all things through Christ who strengthens me.
Philippians 4:13
Prepared by,
Kevin Troy M. Chua
BSA 4-7D
Vice President, Center for Tutorial and Review Services
Mr. College of Accountancy 2012
For inquiries and suggested answers, contact the exam administrator through his Facebook account, Kevin Troy Chua
(Real Kevin), or follow him through his Twitter account @kevintroy15.
/ktmc mr.coa2012 :))
Prepared December 2012
Revised October 23, 2013 1:34 pm

Practice Test ACCO 2026 Midterm Examination

Academic Year 2013-2014 by Kevin Troy M. Chua

11