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8/13/2019 Acctg2 Exam
1/23
Chapter 16 Test Bank
DISSOLUTION AND LIQUIDATION OF A PARTNERSHIP
Mut!pe Ch"!#e Quest!"ns
LO1
1$ %h!#h state&ent !s #"rre#t !n 'es#r!(!n) the rank "r'er "*
pa+&ents as spe#!*!e' (+ the Un!*"r& Partnersh!p A#t,
a$ Pa+&ents t" partners -!th "ans t" the partnersh!p are
ranke' e.ua+ -!th pa+&ents t" "ther #re'!t"rs$
($ Pa+&ents t" partners -!th "ans t" the partnersh!p are
ranke' ahea' "* pa+&ents t" partners -!th"ut "ans t" the
partnersh!p$
#$ Pa+&ents t" "ther #re'!t"rs are ranke' ahea' "* pa+&ents t"
partners -!th "ans t" the partnersh!p$
'$ A*ter pa+&ents are &a'e t" "ther #re'!t"rs an' partners
-!th "ans t" the partnersh!p/ pa+&ent #an (e &a'e t"
partners -!th #ap!ta !nterests$
LO1
0$ %h!#h "* the *""-!n) pr"#e'ures !s a##epta(e -hen a##"unt!n)
*"r a 'e*!#!t (aan#e !n a partners #ap!ta a##"unt 'ur!n)
partnersh!p !.u!'at!"n,
a$ A partner -!th a ne)at!2e #ap!ta (aan#e &ust #"ntr!(utepers"na assets t" the partnersh!p that are su**!#!ent t"
(r!n) the #ap!ta a##"unt t" 3er"$
($ I* a partner -!th a ne)at!2e #ap!ta (aan#e !s pers"na+
!ns"2ent/ the ne)at!2e #ap!ta (aan#e &a+ (e a(s"r(e' (+
th"se partners ha2!n) a p"s!t!2e #ap!ta (aan#e a##"r'!n)
t" the res!'ua pr"*!t an' "ss shar!n) rat!"s that app+
t" a the partners$
#$ I* a partner -!th a ne)at!2e #ap!ta (aan#e !s pers"na+
!ns"2ent/ the ne)at!2e #ap!ta (aan#e &a+ (e a(s"r(e' (+
th"se partners ha2!n) a p"s!t!2e #ap!ta (aan#e a##"r'!n)
t" the res!'ua pr"*!t an' "ss shar!n) rat!"s that app+
t" th"se partners ha2!n) p"s!t!2e (aan#es$'$ A the a("2e pr"#e'ures are a##epta(e$
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
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LO1
8$ A partnersh!p '!ss"ut!"n '!**ers *r"& a !.u!'at!"n !n that
a$ pa+&ents are &a'e t" #re'!t"rs (e*"re partners re#e!2e
2aue$
($ per!"'!# pa+&ents t" partners are &a'e -hen #ash (e#"&es
a2a!a(e$#$ a partner -!th'ra-s *r"& the (us!ness an' the enterpr!se
#"nt!nues t" *un#t!"n$
'$ *u pa+&ent !s &a'e t" a "uts!'e #re'!t"rs (e*"re
re&a!n!n) #ash !s '!str!(ute' t" partners !n a *!na u&p
su& pa+&ent$
LO1
9$ A partnersh!p !n !.u!'at!"n has #"n2erte' a assets !nt" #ash
an' pa!' a !a(!!t!es$ A##"r'!n) t" the Un!*"r& Partnersh!p
A#t/ the "r'er "* pa+&ent
a$ -! ha2e a&"unts 'ue t" partners -!th respe#t t" the!r#ap!ta a##"unts take pre#e'en#e "2er a&"unts "-e' (+
partners "ther than *"r #ap!ta an' pr"*!ts$
($ -! (e a##"r'!n) t" the partners res!'ua pr"*!t an' "ss
shar!n) rat!"s$
#$ -! ha2e a&"unts "-e' (+ partners "ther than *"r #ap!ta
an' pr"*!ts take pre#e'en#e "2er a&"unts 'ue t" partners
-!th respe#t t" the!r #ap!ta a##"unts$
'$ %! (e (+ an+ &anner that !s ("th reas"na(e an' rat!"na
*"r the partnersh!p$
LO1
:$ In partnersh!p !.u!'at!"n/ h"- are partner saar+ a"#at!"ns
treate',
a$ Saar+ a"#at!"ns take pre#e'en#e "2er #re'!t"r pa+&ents$
($ Saar+ a"#at!"ns take pre#e'en#e "2er a&"unts 'ue t"
partners -!th respe#t t" the!r #ap!ta !nterests/ (ut n"t
pr"*!ts$
#$ Saar+ a"#at!"ns take pre#e'en#e "2er a&"unts 'ue t"
partners -!th respe#t t" the!r #ap!ta pr"*!ts/ (ut n"t
#ap!ta !nterests$
'$ Saar+ a"#at!"ns are '!sre)ar'e'$
LO1
6$ A s!&pe partnersh!p !.u!'at!"n re.u!res
a$ per!"'!# pa+&ents t" #re'!t"rs an' partners 'eter&!ne' (+ a
sa*e pa+&ents s#he'ue$
($ partnersh!p assets t" (e #"n2erte' !nt" #ash -!th *u
pa+&ent &a'e t" a "uts!'e #re'!t"rs (e*"re re&a!n!n) #ash
!s '!str!(ute' t" partners !n a u&p su& pa+&ent$
#$ "n+ #re'!t"rs t" (e pa!' !n an "r'er+ &anner$
'$ per!"'!# pa+&ents t" partners as #ash (e#"&es a2a!a(e$
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
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8/13/2019 Acctg2 Exam
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LO0
;$ In a s!&pe partnersh!p !.u!'at!"n/ the ast re&a!n!n) #ash
'!str!(ut!"n sh"u' (e &a'e a##"r'!n) t" the rat!" "*
a$ the !n'!2!'ua partners pr"*!t an' "ss a)ree&ent$
($ the !n'!2!'ua partneru+ 1/ 0556/$ an'
(e)an the !.u!'at!"n pr"#ess$ Dur!n) >u+ the *""-!n) e2ents"##urre'
G Re#e!2a(es "* 8/555 -ere #"e#te'$
G The !n2ent"r+ -as s"' *"r 9/555$
G A a2a!a(e #ash -as '!str!(ute' "n
>u+ 81/ e#ept *"r 0/555 that -as
set as!'e *"r #"nt!n)ent epenses$
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
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LO0
$ The (""k 2aue "* the partnersh!p e.u!t+ !$e$/ t"ta e.u!t+ "*
the partners "n >une 85/ 0556 !s
a$ 65/555$
($ 0/555$#$ 85/555$
'$ 90/555$
LO0
15$ The #ash a2a!a(e *"r '!str!(ut!"n t" the partners "n >u+ 81/
0556 !s
a$ 0/555$
($ 9/555$
#$ ;/555$
'$ 11/555$
LO0
11$ H"- &u#h #ash -"u' ?!n re#e!2e *r"& the #ash that !s a2a!a(e
*"r '!str!(ut!"n "n >u+ 81,
a$ 5$
($ 655$
#$ 1/555$
'$ 0/555$
LO0
10$ Hara/ I2es/ an' >a#k are !n the pr"#ess "* !.u!'at!n) the!r
partnersh!p$ S!n#e !t &a+ take se2era &"nths t" #"n2ert the
"ther assets !nt" #ash/ the partners a)ree t" '!str!(ute a
a2a!a(e #ash !&&e'!ate+/ e#ept *"r 15/555 that !s set
as!'e *"r #"nt!n)ent epenses$ The (aan#e sheet an' res!'ua
pr"*!t an' "ss shar!n) per#enta)es are as *""-s
Cash 955/555 A##"unts pa+a(e 055/555
Other assets 055/555 Hara/ #ap!ta 95 18:/555
I2es/ #ap!ta 85 016/555
>a#k/ #ap!ta 85 9/555
T"ta assets 655/555 T"ta !a($e.u!t+ 655/555
H"- &u#h #ash sh"u' I2es re#e!2e !n the *!rst '!str!(ut!"n,
a$ 196/555$
($ 19;/555$
#$ 1:8/555$
'$ 1:6/555
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
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LO0
18$ >a'e/ ah/ an' Lane are !n the pr"#ess "* !.u!'at!n) the!r
partnersh!p$ Lane has a)ree' t" a##ept the !n2ent"r+/ -h!#h hasa *a!r 2aue "* 65/555/ as part "* her sette&ent$ A (aan#e
sheet an' the res!'ua pr"*!t an' "ss shar!n) per#enta)es are
as *""-s
Cash 1=/555 A##"unts pa+a(e 19/555
In2ent"r+ =5/555 >a'e/ #ap!ta 95 ;/555
Pant assets 085/555 ah/ #ap!ta 95 195/555
Lane/ #ap!ta 05 195/555
T"ta assets :5=/555 T"ta !a($e.u!t+ :5=/555
I* the partners then '!str!(ute the a2a!a(e #ash/ Lane -!
re#e!2e
a$ 08/555$
($ 0/555
#$ 85/555$
'$ 89/555$
LO0
19$ Un'er the rue "* "**set/ -hat !s the pr"per '!sp"s!t!"n "* a
partnersh!p "an that -as &a'e *r"& a partner -h" has a 'e(!t(aan#e,
a$ The "an !s *!rst pa!' t" the 'e(t"r partner (e*"re #ash
pa+&ents are &a'e t" partners$
($ The "an !s -r!tten "** as a partnersh!p "ss !* the
partner '"es n"t ha2e the #ash t" #"2er the 'e(!t (aan#e$
#$ The "an !s #har)e' "** t" the #ap!ta a##"unts "* a the
partners !n the!r pr"*!t an' "ss shar!n) rat!"s$
'$ The "an !s #har)e' "** t" the #ap!ta a##"unt "* the
'e(t"r partner$
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
167:
8/13/2019 Acctg2 Exam
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LO8
1:$ In partnersh!p !.u!'at!"ns/ -hat are sa*e pa+&ents,
a$ The a&"unts "* '!str!(ut!"ns that #an (e &a'e t" the
partners/ a*ter a #re'!t"rs ha2e (een pa!' !n *u$
($ The a&"unts "* '!str!(ut!"ns that #an (e &a'e t" the
partners -!th assuran#e that su#h a&"unts -! n"t ha2e t"(e returne' t" the partnersh!p$
#$ The a&"unts "* '!str!(ut!"ns that #an (e &a'e t" the
partners/ a*ter a n"n7#ash assets ha2e (een a'Juste' t"
*a!r &arket 2aue$
'$ A the a("2e are ea&pes "* the sa*e pa+&ents #"n#ept$
LO9
16$ I* a partners are !n#u'e' !n the *!rst !nsta&ent "* an
!nsta&ent !.u!'at!"n/ then !n *uture !nsta&ents
a$ #ash -! (e '!str!(ute' a##"r'!n) t" the res!'ua pr"*!t
an' "ss shar!n) rat!"$($ #ash sh"u' n"t (e '!str!(ute' unt! a n"n7#ash assets
are #"n2erte' !nt" #ash$
#$ a sa*e pa+&ents s#he'ue &ust (e prepare' (e*"re ea#h #ash
'!str!(ut!"n t" a2"!' e#ess!2e pa+&ents t" partners$
'$ a #ash '!str!(ut!"n pan &ust (e prepare' s" that partners
-! kn"- -hen the+ -! (e !n#u'e' !n #ash '!str!(ut!"ns$
LO:
1;$ The +ear7en' (aan#e sheet an' res!'ua pr"*!t an' "ss shar!n)
per#enta)es *"r the Lan)/ Maas/ an' Nea partnersh!p "n
De#e&(er 81/ 055:/ are as *""-s
Cash 85/555 A##"unts pa+a(e 055/555
L"an t" Lan) 95/555 L"an *r"& Maas :5/555
Other assets 9=5/555 Lan)/ #ap!ta 0: ;5/555
Maas/ #ap!ta 0: =5/555
Nea/ #ap!ta :5 1:5/555
T"ta assets ::5/555 T"ta !a($e.u!t+ ::5/555
The partners a)ree t" !.u!'ate the (us!ness an' '!str!(ute
#ash -hen !t (e#"&es a2a!a(e$ A #ash '!str!(ut!"n pan *"r
the Lan)/ Maas/ an' Nea partnersh!p -! sh"- that #asha2a!a(e/ a*ter "uts!'e #re'!t"rs are pa!'/ -! !n!t!a+ )"
t"
a$ Lan) !n the a&"unt "* 05/555$
($ Maas !n the a&"unt "* 9:/555$
#$ Maas !n the a&"unt "* ::/555$
'$ Nea !n the a&"unt "* 5/555$
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
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8/13/2019 Acctg2 Exam
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LO:
1=$ In a s#he'ue "* assu&e' "ss a(s"rpt!"ns
a$ the partner -!th "-est "ss a(s"rpt!"n !s e!&!nate' ast$
($ !t !s ne#essar+ t" ha2e a #ash '!str!(ut!"n pan *!rst$#$ the east 2unera(e partner !s e!&!nate' *!rst$
'$ the &"st 2unera(e partner !s e!&!nate' *!rst$
LO:
1$ %h!#h partner !s #"ns!'ere' the &"st 2unera(e as a resut "*
a #"&putat!"n "* 2unera(!!t+ rank!n)s,
a$ The partner -!th the "-est 2unera(!!t+ rank!n)/ -h" as"
has the "-est "ss a(s"rpt!"n p"tent!a$
($ The partner -!th the "-est 2unera(!!t+ rank!n)/ -h" as"
has the h!)hest "ss a(s"rpt!"n p"tent!a$
#$ The partner -!th the h!)hest 2unera(!!t+ rat!"/ -h" as"has the "-est "ss a(s"rpt!"n p"tent!a$
'$ The partner -!th the h!)hest 2unera(!!t+ rank!n)/ -h"
as" has the h!)hest "ss a(s"rpt!"n p"tent!a$
LO6
05$ The rank "r'er !s *"r #a!&s a)a!nst a (ankrupt partner "*
I$ Th"se "-!n) t" partners (+ -a+ "* #"ntr!(ut!"n
II$Th"se "-!n) t" separate #re'!t"rs
III$Th"se "-!n) t" partnersh!p #re'!t"rs
a$ II *!rstK I se#"n' an' III th!r'$
($ III *!rstK II se#"n' an' I th!r'$
#$ I *!rstK III se#"n' an' II th!r'$
'$ II *!rstK III se#"n' an' I th!r'$
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
167;
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LO0
Eer#!se 1
The (aan#e sheet "* the A(a/ B!#k/ an' Ca2" partnersh!p "n
>anuar+ 1/ 0556 the 'ate "* partnersh!p '!ss"ut!"n -as as *""-s
Cash 0/555 L!a(!!t!es 9/515Other assets 18/555 L"an *r"& A(a :55
L"an t" Ca2" 1/555 A(a/ #ap!ta 05 5
B!#k/ #ap!ta95 9/:55
Ca2"/ #ap!ta95 6/555
T"ta assets 16/555 T"ta !a($e.u!t+ 16/555
In >anuar+/ "ther assets -!th a (""k 2aue "* =/555 -ere s"' *"r
:/555 !n #ash$
Re.u!re'
Deter&!ne h"- the a2a!a(e #ash "n >anuar+ 81/ 0556 -! (e
'!str!(ute'$
LO0
Eer#!se 0
The partnersh!p "* Dae/ E')ar/ an' Fre' -as '!ss"2e'/ an' (+ >u+
1/ 0556/ a assets ha' (een #"n2erte' !nt" #ash an' a partnersh!p
!a(!!t!es -ere pa!'$ The partnersh!p (aan#e sheet "n >u+ 1/ 0556
-!th partner res!'ua pr"*!t an' "ss shar!n) per#enta)es -as as
*""-s
Cash 15/555 Fre'/ #ap!ta85 95/555Dae/ #ap!ta95 05/555
E')ar/ #ap!ta85 15/555
T"ta assets 15/555 T"ta e.u!t+ 15/555
The 2aue "* partners< pers"na assets an' !a(!!t!es "n >u+ 1/
0556 -ere as *""-s
Dae E')ar Fre'
Pers"na assets 9:/555 85/555 0:/555Pers"na !a(!!t!es 85/555 05/555 15/555
Re.u!re'
Prepare the *!na state&ent "* partnersh!p !.u!'at!"n$
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
167=
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LO0
Eer#!se 8
The (aan#e sheet "* the O&ar/ Pa""/ an' Quek partnersh!p "n
N"2e&(er 1/ 0556 (e*"re #"&&en#e&ent "* partnersh!p !.u!'at!"n -as
as *""-s
Cash :=/555 A##"unts pa+a(e 89/555
In2ent"r+ 65/555 N"tes pa+a(e 60/555
L"an t" O&ar =/555 O&ar/ #ap!ta95 09/555
L"an t" Quek 19/555 Pa""/ #ap!ta0: 06/555
Pant assets7net ;5/555 Quek/ #ap!ta 8: 69/555
T"ta assets 015/555 T"ta !a($e.u!t+ 015/555
L!.u!'at!"n e2ents !n N"2e&(er -ere as *""-s
7 The !n2ent"r+ -as s"' *"r 15/555 a("2e (""k 2aueK7 Pant assets -!th a (""k 2aue "* 65/555 -ere s"' *"r 89/555$
Re.u!re'
Deter&!ne h"- the a2a!a(e #ash "n N"2e&(er 81/ 0556 sh"u' (e
'!str!(ute'$
LO0
Eer#!se 9
A #ash '!str!(ut!"n pan *"r the F")er/ "2er/ an' Hae partnersh!p
-as as *""-s
Pr!"r!t+
Cre'!t"rs F")er "2er Hae
F!rst 0:5/555 155
Net 155/555 ;5 85
Net 1:5/555 111: 91:
Re&a!n'er 05 8: 9:
Re.u!re'
I* =:5/555 "* #ash -as '!str!(ute' (+ the partnersh!p/ h"- &u#h -as
re#e!2e' respe#t!2e+ (+ the pr!"r!t+ #re'!t"rs/ F")er/ "2er/ an'
Hae,
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
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LO0
Eer#!se :
The (aan#e sheet "* the >"'+/ ane/ an' Lark partnersh!p "n Ma+ 1/
0556 (e*"re #"&&en#e&ent "* partnersh!p !.u!'at!"n -as as *""-s
Cash :9/555 A##"unts pa+a(e 0=/555
In2ent"r+ 65/555 N"tes pa+a(e 65/555
L"an t" >"'+ 15/555 >"'+/ #ap!ta 85 80/555
L"an t" Lark 16/555 ane/ #ap!ta 9: 5/555
Pant assets7net 115/555 Lark/ #ap!ta 0: 95/555
T"ta assets 0:5/555 T"ta !a($e.u!t+ 0:5/555
L!.u!'at!"n e2ents !n Ma+ -ere as *""-s
7 The !n2ent"r+ -as s"' *"r 6/555 (e"- (""k 2aueK
7 Pant assets -!th a (""k 2aue "* :5/555 -ere s"' *"r 65/555$
Re.u!re'
Deter&!ne h"- the a2a!a(e #ash "n Apr! 85/ 0556 sh"u' (e '!str!(ute'$
LO0
Eer#!se 6
The (aan#e sheet "* the Ne(e/ Oak/ an' Pan) partnersh!p "n O#t"(er
1/ 0556 the 'ate "* partnersh!p '!ss"ut!"n -as as *""-s
Cash 8/555 L!a(!!t!es /555Other assets 88/555 L"an *r"& Ne(e 1/555
L"an t" Oak 9/555 Ne(e/ #ap!ta 05 8/555
Oak/ #ap!ta 85 6/555
Pan)/ #ap!ta :5 01/555
T"ta assets 95/555 T"ta !a($e.u!t+ 95/555
In O#t"(er/ "ther assets -!th a (""k 2aue "* 1:/555 -ere s"' *"r
1;/555 !n #ash$
Re.u!re'
Deter&!ne h"- the a2a!a(e #ash "n O#t"(er 81/ 0556 -! (e'!str!(ute'$
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
16715
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LO0
Eer#!se ;
The partnersh!p "* Han+/ I'e/ an' >en -as '!ss"2e'$ B+ Au)ust 1/
0556/ a assets ha' (een #"n2erte' !nt" #ash an' a partnersh!p
!a(!!t!es -ere pa!'$ The partnersh!p (aan#e sheet "n Au)ust 1/
0556 -!th partner res!'ua pr"*!t an' "ss shar!n) per#enta)es -asas *""-s
Cash :5/555 Han+/ #ap!ta85 9/555
I'e/ #ap!ta05 65/555
>en/ #ap!ta:5 156/555
T"ta assets :5/555 T"ta e.u!t+ :5/555
The 2aue "* partners< pers"na assets an' !a(!!t!es "n Au)ust 1/
0556 -ere as *""-s
Han+ I'e >en
Pers"na assets ;9/555 105/555 :6/555
Pers"na !a(!!t!es ;0/555 =5/555 65/555
Re.u!re'
Prepare the *!na state&ent "* partnersh!p !.u!'at!"n$
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
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LO:
Eer#!se =
Lu!s/ Ma#/ Ne/ an' O&a are partners -h" share pr"*!ts an' "sses
95/ 0:/ 0:/ an' 15/ respe#t!2e+$ The partnersh!p -! (e
!.u!'ate' )ra'ua+ "2er se2era &"nths (e)!nn!n) >anuar+ 1/ 0556$
The partnersh!p tr!a (aan#e at De#e&(er 81/ 055: !s as *""-s
De(!ts Cre'!ts
Cash 8/555
A##"unts re#e!2a(e 1/555
In2ent"r+ 0:/555
L"an t" Ne :/555
Furn!ture 1:/555
E.u!p&ent 15/555
""'-! 10/555
A##"unts pa+a(e 19/555
N"te pa+a(e 85/555
L"an *r"& Lu!s :/555Lu!s/ #ap!ta 95 1:/555
Ma#/ #ap!ta 0: /555
Ne/ #ap!ta 0: 10/555
O&a/ #ap!ta 15 9/555
T"tas =/555 =/555
Re.u!re'
Prepare a #ash '!str!(ut!"n pan *"r >anuar+ 1/ 0556/ sh"-!n) h"-
#ash !nsta&ents -! (e '!str!(ute' a&"n) the partners as !t
(e#"&es a2a!a(e$
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
16710
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LO:
Eer#!se
Quan/ Ra+/ Sen/ an' Ta' are partners -h" share pr"*!ts an' "sses 85/ 05/
8:/ an' 1:/ respe#t!2e+$ The partnersh!p -! (e !.u!'ate' )ra'ua+
"2er se2era &"nths (e)!nn!n) >anuar+ 1/ 0556$ The partnersh!p tr!a
(aan#e at De#e&(er 81/ 055: !s as *""-s
De(!ts Cre'!ts
Cash 8/555
A##"unts re#e!2a(e 15/555
In2ent"r+ 0:/555
L"an t" Ra+ 9/555
Furn!ture 1:/555
E.u!p&ent 1=/555
""'-! 15/555
A##"unts pa+a(e 10/555
N"te pa+a(e 85/555
L"an *r"& Sen 6/555Quan/ #ap!ta 85 10/555
Ra+/ #ap!ta 05 /555
Sen/ #ap!ta 8: 10/555
Ta'/ #ap!ta 1: 9/555
T"tas =:/555 =:/555
Re.u!re'
Prepare a #ash '!str!(ut!"n pan *"r >anuar+ 1/ 0556/ sh"-!n) h"-
#ash !nsta&ents -! (e '!str!(ute' a&"n) the partners as !t
(e#"&es a2a!a(e$
LO:
Eer#!se 15
A #ash '!str!(ut!"n pan *"r the Upt"n/ aenta/ an' %aker
partnersh!p -as as *""-s
Pr!"r!t+
Cre'!t"rs Upt"n aenta %aker
F!rst 155/555 155
Net 1=5/555 99 15 96
Net 0;5/555 0 1 08Re&a!n'er 11 99 9:
Re.u!re'
I* ;55/555 "* #ash -as '!str!(ute' (+ the partnersh!p/ h"- &u#h -as
re#e!2e' respe#t!2e+ (+ the pr!"r!t+ #re'!t"rs/ Upt"n/ aenta/ an'
%aker,
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
16718
8/13/2019 Acctg2 Exam
14/23
SOLUTIONS
Mut!pe Ch"!#e Quest!"ns
1$ #
0$ #
8$ a
9$ #
:$ '
6$ (
;$ a
=$ '
$ ( 19/555 %are #ap!ta 15/555 ?!n #ap!ta
6/555 @ates #ap!ta :/555 L"an *r"& ?!n 7
6/555 L"an t" %are
15$ a 9/555 (e)!nn!n) (aan#e 8/555 #ash #"e#te'
9/555 *"r !n2ent"r+ s"' 7 ;/555 "* a##"unts pa+a(e
7 0/555 *"r epenses
11$ '
%are ?!n @ates T"ta
E.u!t!es/>un 85 =/555 1:/555 6/555 0/555
In2ent"r+ "ss 0/555 8/555 :/555 15/555
C"nt!n)en#+ *un' 955 655 1/555 0/555
Su(t"tas :/655 11/955 5 1;/555
P"ss!(e "sses "n
re&a!n!n) assets 8/555 9/:55 ;/:55 1:/555
Su(t"tas 0/655 6/55 ;/:55 0/555
E!&!nate @atessDe*!#!t 8/555 9/:55 ;/:55
Su(t"tas 955 0/955 5 0/555
E!&!nate %ares
De*!#!t 955 955
Cash '!str!(ut!"n 5 0/555 5 0/555
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
16719
8/13/2019 Acctg2 Exam
15/23
10$ (
L"sses 95
Hara
85
I2es
85
>a#k
E.u!t!es 18:/555 016/555 9/555
P"ss!(e "ss "nre&a!n!n) assets 055/555 =5/555 65/555 65/555
C"nt!n)en#!es 15/555 9/555 8/555 8/555
Su(t"tas :1/555 1:8/555 19/555
E!&!nate >a#ks
'e(!t (aan#e =/555 6/555 19/555
Sa*e pa+&ents 98/555 19;/555 5
18$ a
95
>a'e
95
ah
05
Lane
E.u!t!es ;/555 195/555 195/555
D!str!(ute !n2ent"r+ t"
Lane an'
65/555
re#")n!3e 05/555 "ss =/555 =/555 9/555
P"ss!(e "sses "n pant 0/555 0/555 96/555
Su(t"ta 01/555 95/555 85/555
E!&!nate >a'es 'e(!t
(aan#e t" ah Lane 01/555 19/555 ;/555
Baan#e 5 06/555 08/555
19$ (
1:$ (
16$ a
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
1671:
8/13/2019 Acctg2 Exam
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1;$ #
unera(!!t+ ranks
Lan) e.u!t+ ;5/555 7 95/555$0: 105/555 1
Maas e.u!t+ =5/555 :5/5555$0: :05/555 8
Nea e.u!t+ 1:5/555$: 855/555 0
Assu&e' "ss a(s"rpt!"n
0:
Lan)
0:
Maas
:5
Nea T"ta
E.u!t!es 85/555 185/555 1:5/555 815/555
L"ss t" e!&!nate
Lan) 85/555 85/555 65/555 105/555
Su(t"tas 5 155/555 5/555 15/555
L"ss t" e!&!nate
Nea 9:/555 5/555 18:/555
Su(t"tas ::/555 5 ::/555
1=$ '
1$ a
05$ '
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
16716
8/13/2019 Acctg2 Exam
17/23
Eer#!se 1
A(a/ B!#k/ an' Ca2" Partnersh!p
Partnersh!p L!.u!'at!"n S#he'ue
Cash
N"n7
CashAssets
F!rst
RankDe(t
05
A(aE.u!t+
95
B!#kE.u!t+
95
Ca2"E.u!t+
>an 1 Baan#e 0/555 18/555 9/515 1/95 9/:55 :/555
Sae "* assets :/555 =/555 655 1/055 1/055
Su(t"ta ;/555 :/555 9/515 =5 8/855 8/=55
Sa*e Pa+&ents S#he'ue
A(a
E.u!t+
B!#k
E.u!t+
Ca2"
E.u!t+
Partners pre7'!str!(ut!"n (aan#es =5 8/855 8/=55P"ss!(e "sses "n n"n7#ash assets 1/555 0/555 0/555
115 1/855 1/=55
%r!te "** A(a :57:5 115 :: ::
Cash '!str!(ut!"n t" partners 5 1/09: 1/;9:
Cash '!str!(ut!"n pan "n >anuar+ 81
F!rst 9/515 )"es t" pr!"r!t+ #re'!t"rs/ an' then B!#k re#e!2es
1/09: an' Ca2" re#e!2es 1/;9:$
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
1671;
8/13/2019 Acctg2 Exam
18/23
Eer#!se 0
Dae/ E')ar/ an' Fre' Partnersh!p
F!na State&ent "* Partnersh!p L!.u!'at!"n
CashDae
Cap!taE')arCap!ta
Fre'Cap!ta T"ta
Baan#e/ >u+ 1 15/555 05/555 15/555 95/555 15/555
Daes pers"na
#"ntr!(ut!"n 1:/555 1:/555 1:/555
0:/555 :/555 15/555 95/555 0:/555
%r!te7"** Dae :/555 0/:55 0/:55
0:/555 5 10/:55 8;/:55 0:/555
E')ars pers"na
#"ntr!(ut!"n 15/555 15/555 15/555
8:/555 0/:55 8;/:55 8:/555
%r!te7"** E')ar 0/:55 0/:55
8:/555 5 8:/555 8:/555
D!str!(ute #ash 8:/555 8:/555 8:/555
5 5 5
Eer#!se 8
O&ar/ Pa""/ an' Quek
S#he'ue "* Partnersh!p L!.u!'at!"n
N"2e&(er 85/ 0556
Assets De(ts
95
O&ar
0:
Pa""
8:
Quek
Baan#e/ N"2$ 1 015/555 6/555 09/555 06/555 69/555
In2ent"r+ s"' 15/555 9/555 0/:55 8/:55
Sae "* pant 06/555 15/955 6/:55 /155
Baan#es (e*"re
'!str!(ut!"n 19/555 6/555 1;/655 00/555 :=/955
O**set "ans 00/555 =/555 19/555
Pa+ #re'!t"rs 6/555 6/555
Partner e.u!t+ ;6/555 /655 00/555 99/955
P"ss!(e "ss
Pant assets 15/555 9/555 0/:55 8/:55D!str!(ut!"n 66/555 :/655 1/:55 95/55
Cash D!str!(ut!"n :=/555 ;5/555 89/555 7 6/555 66/555
N"2$ 1 In2ent"r+ Pant Cre'!t"rs N"2$ 85
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
1671=
8/13/2019 Acctg2 Exam
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Eer#!se 9
Pr!"r!t+
Cre'!t"rs F")er "2er Hae
F!rst 0:5/555 0:5/555
Net 155/555 ;5/555 85/555
Net 1:5/555 115/555 95/555Last 8:5/555 ;5/555 100/:55 1:;/:55
T"ta =:5/555 0:5/555 0:5/555 1:0/:55 1;/:55
Eer#!se :
>"'+/ ane/ an' Lark
S#he'ue "* Partnersh!p L!.u!'at!"n
Ma+ 85/ 0556
Assets De(ts
85
>"'+
9:
ane
0:
Lark
Baan#e/ Ma+ 1 0:5/555 ==/555 80/555 5/555 95/555
Pant s"' 15/555 8/555 9/:55 0/:55
In2ent"r+ s"' 6/555 1/=55 0/;55 1/:55
Baan#es (e*"re
'!str!(ut!"n 0:9/555 ==/555 88/055 1/=55 91/555
O**set "ans 06/555 15/555 16/555
Pa+ #re'!t"rs ==/555 ==/555
Partner e.u!t+ 195/555 08/055 1/=55 0:/555
P"ss!(e "ss
Pant assets 65/555 1=/555 0;/555 1:/555
D!str!(ut!"n =5/555 :/055 69/=55 15/555
Cash D!str!(ut!"n :9/555 :9/555 65/555 7 ==/555 =5/555
Ma+ 1 In2ent"r+ Pant Cre'!t"rs Ma+ 85
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
1671
8/13/2019 Acctg2 Exam
20/23
Eer#!se 6
Ne(e/ Oak/ an' Pan) Partnersh!p
Partnersh!p L!.u!'at!"n S#he'ue
Cash
N"n7
CashAssets
F!rst
RankDe(t
85
OakE.u!t+
05
Ne(eE.u!t+
:5
Pan)E.u!t+
>an 1 Baan#e 8/555 88/555 /555 0/555 9/555 01/555
Sae "* assets 1;/555 1:/555 655 955 1/555
Su(t"ta 05/555 1=/555 /555 0/655 9/955 00/555
Sa*e Pa+&ents S#he'ue
Oak
E.u!t+
Ne(e
E.u!t+
Pan)
E.u!t+
Partners pre7'!str!(ut!"n (aan#es 0/655 9/955 00/555
P"ss!(e "sses "n n"n7#ash assets :/955 8/655 /555 0/=55 =55 18/555
%r!te "** Oak 0; an' :; 0/=55 =55 0/555
Cash '!str!(ut!"n t" partners 5 5 11/555
Cash '!str!(ut!"n pan "n O#t"(er 81
F!rst /555 )"es t" pr!"r!t+ #re'!t"rs/ an' then Pan) re#e!2es
11/555$
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
16705
8/13/2019 Acctg2 Exam
21/23
Eer#!se ;
Han+/ I'e/ an' >en Partnersh!p
F!na State&ent "* Partnersh!p L!.u!'at!"n
CashI'e
Cap!taHan+Cap!ta
>enCap!ta T"ta
Baan#e/ Au)$ 1 :5/555 65/555 9/555 156/555 :5/555
I'es pers"na
#"ntr!(ut!"n 95/555 95/555 95/555
5/555 05/555 9/555 156/555 5/555
%r!te7"** I'e 05/555 ;/:55 10/:55
5/555 5 8/:55 8/:55 5/555
Han+s pers"na
#"ntr!(ut!"n 0/555 0/555 0/555
0/555 1/:55 8/:55 0/555
%r!te7"** Han+ 1/:55 1/:55
0/555 5 0/555 0/555
D!str!(ute #ash 0/555 0/555 0/555
5 5 5
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
16701
8/13/2019 Acctg2 Exam
22/23
Eer#!se =
L"ss a(s"rpt!"n p"tent!a
Partners
E.u!t+
Pr"*!t
an' L"ss
Rat!"
L"ss
A(s"rpt!"n
P"tent!a
unera(!!t+
Rank!n)Lu!s 05/555 95 :5/555 9
Ma# /555 0: 86/555 0
Ne ;/555 0: 0=/555 1
O&a 9/555 15 95/555 8
S#he'ue "* assu&e' "ss a(s"rpt!"n
95
Lu!s
0:
Ma#
0:
Ne
15
O&a T"ta
Partnersh!pe.u!t+ 05/555 /555 ;/555 9/555 95/555
Assu&e' "ss
t" a(s"r( Ne 11/055 ;/555 ;/555 0/=55 0=/555
=/=55 0/555 5 1/055 10/555
Assu&e' "ss
t" a(s"r( Ma# 8/055 0/555 =55 6/555
:/655 5 955 6/555
Assu&e' "ss
t" a(s"r( O&a 1/655 955 0/555
9/555 5 9/555
Cash '!str!(ut!"n pan
F!rst 99/555 pa+s the pr!"r!t+ #re'!t"rsK
Net 9/555 )"es t" Lu!sK
Net 0/555 )"es 1/655 t" Lu!s/ an' 955 t" O&aK
Net 6/555 )"es 8/055 t" Lu!s/ 0/555 t" Ma#/ an' =55 t" O&aK
Re&a!n'er )"es 95 t" Lu!s/ 0: t" Ma#/ 0: t" Ne/ an' 15 t" O&a$
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
16700
8/13/2019 Acctg2 Exam
23/23
Eer#!se
L"ss a(s"rpt!"n p"tent!a
Partners
E.u!t+
Pr"*!t
an' L"ss
Rat!"
L"ss
A(s"rpt!"n
P"tent!a
unera(!!t+
Rank!n)Quan 10/555 85 95/555 8
Ra+ :/555 05 0:/555 1
Sen 1=/555 8: :1/90 9
Ta' 9/555 1: 06/66; 0
S#he'ue "* assu&e' "ss a(s"rpt!"n
85
Quan
1:
Ta'
05
Ra+
8:
Sen T"ta
Partnersh!p
e.u!t+ 10/555 9/555 :/555 1=/555 8/555Assu&e' "ss
7 a(s"r( Ra+ ;/:55 8/;:5 :/555 =/;:5 0:/555
9/:55 0:5 5 /0:5 19/555
Assu&e' "ss
t" a(s"r( Ta' :55 0:5 :=8 1/888
9/555 5 =/66; 10/66;
Assu&e' "ss
t" a(s"r( Quan 9/555 9/66; =/66;
5 9/555 9/555
Cash '!str!(ut!"n pan
F!rst 90/555 pa+s the pr!"r!t+ #re'!t"rsK
Net 9/555 )"es t" SenK
Net =/66; )"es 9/66; t" Sen/ an' 9/555 t" QuanK
Net 1/888 )"es :=8 t" Sen/ :55 t" Quan/ an' 0:5 t" Ta'K
Re&a!n'er )"es 8: t" Sen/ 85 t" Quan/ 05 t" Ra+/ an' 1: t" Ta'$
Eer#!se 15
Pr!"r!t+
Cre'!t"rs Upt"n aenta %aker
F!rst 155/555 155/555
Net 1=5/555 ;/055 1=/555 =0/=55Net 0;5/555 65/555 85/555 1=5/555
Last 1:5/555 16/:55 66/555 6;/:55
T"ta ;55/555 155/555 1::/;55 119/555 885/855
4055 Pears"n E'u#at!"n/ In#$ pu(!sh!n) as Prent!#e Ha
16708