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1. After operating for five years, the books of the partnership of KK and LL showed the following balances:

Net assets	130,000
KK, capital	85,000
LL, capital	45,000

If liquidation takes place at this point and the net assets are realized at bookvalue, the partners are entitled to:

Select one:

a. KK receive P90,000 & LL to receive P40,000

b. KK receive P97,500 & LL to receive P32,500

c. KK receive P85,000 & LL to receive P45,000

d. KK receive P65,000 & LL to receive P65,000

2. W, a senior partner in an accounting firm, has a profit share of 40% and 30% interest in 20x7. During 20x7, W withdrew P160,000 against his capital but invested property with a fair value of P70,000. If W's ending capital is P80,000 lesser than his capital beginning, how much is the partnership net income or net loss for 20x7?

Select one:

a. (P25,00)

b. (P10,000)

c. P25,000

d. P10,000

3. Under the partnership agreement, J is to receive a bonus of 20% of net income after bonus and remainder to be distributed as follows: 35% each to J and K and 30% to L.

If the partnerships net income is P318,000, Js share is

Select one:

a. P147,750

b. P79,500

c. P92,750

d. P132,500

4. Jessup Construction, Inc. has consistently used the percentage-of-completion method of recognizing income. During 2008, Jessup started work on a P1,500,000 fixed-price construction contract. The accounting records disclosed the following data for the year ended December 31, 20x7:

Costs incurred	465,000
Estimated cost to complete	1,085,000
Progress billings	550,000
Collections	350,000

How much loss should Jessup have recognized in 20x7?

Select one:

a. P15,000

b. P50,000

c. P100,000

d. P85,000

5. C & J Construction, Inc. has consistently used the percentage-of-completion method of recognizing income. Last year C & J started work on a P4,500,000 construction contract, which was completed this year. The accounting records disclosed the following data for last year:

Progress billings	1,650,000
Costs incurred	1,350,000
Collections	1,050,000
Estimated cost to complete	2,700,000

How much income should C & J have recognized on this contract last year?

Select one:

a. P150,000

b. P105,000

c. P350,000

d. P300,000

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