ACCOUNTING

82 Chapter 2 Fact pattern: 2. Tomay Co. established a petty cash fund of P40,000. Fund disbursements during the period were P8,025 for office supplies, P11,533 for miscellaneous selling expenses, and P7,805 for miscellaneous administrative expenses. The petty cash count at the end of the period revealed total bills and coins of P12,834. 4. The entry to replenish the fund includes a. a debit to petty cash fund for P26,969. b. a credit to petty cash fund for P27,363. c. a debit to Cash shortage or overage for P197. d. a credit to Cash shortage or overage for P197. 5. To replenish the fund at the end of the period, Tomay Co. should write a check in the amount of a. 27, 166. b. 26,969. c. 27,363. d. 27,560.5. The accountant of the DEF Co. gathered the following data: 31-Mar 30-Apr Book balance 400,000 540,000 Book debits 180,000 Book credits 40,000 Bank balance 280,000 440,000 Bank debits 30,000 Bank credits 190,000 Credit memos 36,000 23,000 Bank charges 10,000 16,000 Deposit in transit 169,000 136,000 Outstanding checks 23,000 30,000 Additional information: a. Disbursements in April of P45,000 were recorded as P54,000. b. Deposit in April amounting to P10,000 was erroneously credited by the bank to another company's account. Requirement: Prepare a proof of cash.6. Information on Yano Co. is shown below: 30-Jun 31-Jul Book balance 382,500 527,000 Book debits 180,900 Book credits 36,400 Bank balance 365,380 653,700 Bank debits 108,020 Bank credits 396,340 Credit memos 74,200 262,800 Bank charges 2,000 6,000 Deposit in transit 169,000 136,000 Outstanding checks 23,000 30,000 Additional information: The book disbursements in June were overstated by P36,340. The book disbursements in July were understated by P54,280. . The bank receipts in June were overstated by P20,340. . The bank receipts in July were overstated by P30,180. Requirement: Prepare a proof of cash.ASSIGNMENT 3 : PARTNERSHIP DISSOLUTION - Change in Ownership Structure A. The partnership of Rosanna Casulla and April Ann Ytac has been successful in its operation for years now. Their respective capital balances and profit and loss agreement that is contained in the Articles of Co-partnership follows: Casulla Ytac Capital P240,000 P260,000 P/L Ratio 5 Annabelle Sarno is admitted as a new partner. Instructions: Prepare journal entries to record Sarno's admission under the following independent situations: 1. Sarno purchases 1/2 of the partnership's interest for P250,000. 2. Sarno purchases $4 of the partnership's interest for P350,000. 3. Sarno purchases 1/5 of the partnership's interest for P120,000. 4. Sarno purchases 1/4 of Casulla's interest for P60,000. 5. Sarno purchases 1/3 of Casulla's interest for P90,000. 6. Sarno purchases 1/2 of Casulla's interest for P120,000. 7. Sarno invests P300,000 for a 1/3 interest of the new firm. 8. Sarno invests P300,000 for a 1/4 interest in the new firm, with agreed capitalization equal to contributed capital. 9. Sarno invests P300,000 for a 40% interest in the new partnership. 10. Sarno invests P300,000 for a 30% interest in the new firm. B. The post-closing trial balance of Butuan Internet Cafe is presented below before the admission of Clint Balibay. Debit Credit Cash P 45,000 Non-Cash Assets 715,000 Accounts Payable P150,000 Ian Basarte, Capital (40%) 265,000 Miguel Silverio, Capital ( 30% ) 185,000 Rizalina Jostol, Capital (30% ) 160,000 Total P760,000 P760,000 Assume that the partnership decided to admit Balibay as new partner with a '4 interest. Required: For each of the following independent cases, determine the amount that Balibay must contribute in cash or other assets. Case 1 - No bonus will be recorded. Case 2 - A bonus of P24,000 is to be paid by Balibay and allocated to the partners. Case 3 - The old partners, Basarte, Silverio and Jostol agreed to credit Balibay for P10,000 of bonus upon admission into the partnership Case 4 - Other assets are revalued to effect an increase of P80,000 and allocated to the old partners at the time of admission of Balibay. Case 5 - Other assets are written down by P50,000 and bonus of P40,000 is paid to Balibay at the time of admission.C. Heginio Lacson, Joel Jo and Alex Ajoc are partners who shared profit and losses of 30%, 50% and 20% respectively. Jo decides to withdraw from the partnership. Their respective capital account balances after partnership's books have been adjusted, as follows: Heginio Lacson P60,000 Joel Jo 85,000 Alex Ajoc 55,000 Required: 1. Prepare journal entry to record the withdrawal of Joel Jo from the partnership under the following assumptions: a. Alex Ajoc buys his share for P90,000. b. Heginio Lacson buys 4 of his share and 1/4 by Alex Ajoc. c. Marco Ocenar, an outsider buys his interest for P80,000. 2. Determine the capitalization of the partnership after Joel Jo's withdrawal in each of the given assumption. D. Bebita Esparaguera, Christine Supapo and Edwin Ceniza are partners sharing P/L ratio of 2:4:2. Their capital balances reflected in the partnership's book showed the following: Esparaguera Supapo Ceniza Capital Balances P600,000 P800,000 P650,000 Ceniza becomes insolvent.. His equity is settled by the partnership. Required: Give the journal entries to record the withdrawal of Ceniza, assuming the partnership pays the amount given in the following independent cases: 1. The partnership pays P600,000. 2. The partnership pays P700,000. E. The adjusted capital balances of the partners of Tea For Two Snack House who shared profit and loss equally follow: Peter Orcullo P 80,000 Mer Reyes 100,000 Bogie Lopez 90,000 Peter Orcullo is planning to sell his interest and the partnership is interested of buying this Requirements: 1. If the partnership will buy his interest for P95,000 and the difference is assumed to be bonus, determine the capital balance of each of the remaining partners and prepare journal entry to record the withdrawal of Peter Orcullo. 2. If the partnership will buy his interest for P75,000 and the difference is assumed to be bonus, what necessary journal entry should be made in the partnership book. F. Mr. Dimamatay, a partner of Long Live Enterprises finally died on February 29, 20A. Record shows that his interest in the partnership as of latest closing of book on December 31, 20A was P50,000. The partnership made a profit of P20,000 from January 1 to February 29, 20A. He shares 50% in profit. Required: 1. Determine the interest of Mr. Dimamatay in the partnership at the time of his death. 2. Prepare journal entry in the book of the partnership assuming his interest was given to his heirs. If his interest will be sold to Mr. Buhay as a remedy to settle the partnership obligation, what journal entry is necessary