Problem 1

1.FALSE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
6. FALSE
7. TRUE
8. FALSE
9. FALSE
10. FALSE

Problem 2
1. A
2.A
3.A
4.D
5.C
 Sunny Gloomy
Cash 180,000
Accounts Receivable 60,000
Inventory 60,000
Land 600,000
total: 300,000 600,000

1
Cash 180,000
Accounts Receivable 60,000
Inventory 60,000
Land 600,000
Sunny Capital 300,000
Gloomy Capital 600,000
2
Sunny Capital 300,000
Divided by: P/L ratio (30%) 30%
Total 1,000,000
Multiply by: P/L ratio (70%) 70%
total 700,000
Gloomy Capital 600,000
Deficiency in gloomy's capital contribution 100,000

Journal Entry
Cash 100,000
Gloomy's Capital 100,000
to record additional cash

3
Actual contribution
Sunny 300,000 900,000*50%
Gloomy 600,000 900,000*50%
Total 900,000

Compound Journal Entry

Cash 180,000
Accounts Receivable 60,000
Inventory 60,000
Land 600,000
Sunny Capital (300,000+150,000 bonus) 450,000
Gloomy Capital (600,000-150,000 bonus) 450,000
4
Sunny Gloomy
Cash 180,000
Accounts Receivable 60,000
Inventory 60,000
Cash receipt payment -150,000 150,000

Gloomy shall receive 150,000 from Sunny

Cash 180,000
Accounts Receivable 60,000
Inventory 60,000
Land 600,000
Sunny Capital 450,000
Gloomy Capital 450,000

*The Cash settlement among the partners is not recorded in the partnership book because this is not transaction of the partne
but rather of the partners among themselves.
*The partnership capital of 900,00 remains the same after the cash settlement.Because what varied are only the credits to the
partners capital accounts.

5
Sunny Gloomy
Actual contribution 300,000 600,000
Required capital 450,000 450,000
-150,000 150,000

Sunny (900,000*50%) 150,000

Gloomy (900,000*50%) 150,000

Sunny shall make an additional investment of 150,000 while gloomy shall withdraw 150,000 from his initial capital
Partnership
180,000
60,000
60,000
600,000
900,000

Gloomy Capital 700,000

Divided by:Gloomy P/L ratio (70%) 70%
total 1,000,000
multiply by:Sunny P/L Ratio (30%) 30%
total 300,000
Sunny Capital 300,000
Deficiency in sunny's capital contribution

Bonus Method
450,000
450,000
900,000

Simple Journal Entry-Sunny

Cash 180,000
Sunny,Capital

Accounts Receivable 60,000

Sunny,Capital
 Inventory 60,000
Sunny,Capital

Sunny,Capital 150,000
Gloomy,Capital

Partnership
180,000
60,000
60,000

e this is not transaction of the partnership

what varied are only the credits to the

Total
900,000
900,000

00 from his initial capital

Gloomy ( 600,000+100,000) 700,000
Sunny 300,000
1,000,000

Simple Journal Entry-Gloomy

Land
180,000 Gloomy,Capital

Gloomy,Capital
60,000 Sunny,Capital
 60,000

150,000
600,000
600,00

150,000
150,000