JAM

NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS
REGION I AND CAR
Junior
Accounting
masters
01
jam: EASY
On February 1, 2016, authorized ordinary
share was sold on a subscription basis at a
price in excess of par value, and 20% of the
subscription price was collected. On May 1,
2016 the remaining 80% of the subscription
price was collected. Share premium would
increase on
February 1, 2016 May 1, 2016
a. No Yes
b. No No
c. Yes No
d. Yes Yes
NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTA
REGION I AND CAR

c
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REGION I AND CAR

02
jam: EASY
Five thousand (5,000) shares of ordinary share
with a par value of P10 per share were issued
initially at P12 per share. Subsequently, one
thousand (1,000) of these shares were acquired as
treasury share at P15 per share. Assuming that
the cost method of accounting for treasury share
transactions is used, what is the effect of the
acquisition of the treasury share on each of
the following?
Share premium Retained earnings
a. No effect No effect
b. Increase Decrease
c. Decrease Increase
d. Decrease Decrease
REGION I AND CAR

A
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REGION I AND CAR

03
jam: EASY
A company issued rights to its existing
shareholders to acquire, at P15 per share, 5,000
unissued shares of ordinary share with a par value
P10 per share. Ordinary share will be credited
at
a. P15 per share when the rights are exercised
b. P15 per share when the rights are issued
c. P10 per share when the rights are exercised
d. P15 per share when the rights are issued
REGION I AND CAR

c
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REGION I AND CAR

04
jam: EASY
How would retained earnings be affected
by the declaration of each of the following:
Stock Dividend Share Split

a. Decrease Decrease
b. No effect Decrease
c. No effect No effect
d. Decrease No effect
REGION I AND CAR

D
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REGION I AND CAR

05
jam: EASY
How would the declaration of a 20% stock
dividend by LMN Corporation affect each of the
following accounts on Jet’s statement of financial
position?
Retained Earnings Total Shareholders Equity

a. Decrease Decrease
b. Decrease No effect
c. No effect Decrease
d. No effect No effect`
REGION I AND CAR

B
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REGION I AND CAR

06
jam: EASY
H and I formed a partnership agreeing to share
profits equally. H contributed P10,000 cash and
P400,000 newly purchased equipments. I
contributed P15,000 cash and a parcel of land
acquired 5 years ago for P100,000. Three hours
after formation, the land was sold for P200,000.
How much is the capital balance of I?
a. P50,000
b. b. P215,000
c. c. P150,000
d. d. P165,000
REGION I AND CAR

b
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REGION I AND CAR

07
jam: EASY
Partner Y and Z agreed to form ZY Partnership
sharing profit 40% and 60%. The partnership also
assumed the separate liabilities of the partners: Y,
P200,000 and Z, P300,000. Cash of P150,000 and
P250,000 were also contributed by Y and Z.
Immediately after formation, the partners were credited
with P500,000 and P400,000 capital. How much is the
agreed value of non-cash assets contributed by
Z?
REGION I AND CAR

Time’s
450,Up!000
REGION I AND CAR

08
jam: EASY
A, Q and W contributed a total of
P600,000 cash to form WAQ
Partnership. Only W posses the
technical expertise required by the
business so A and Q agreed to
provide 10% of their contributed
capital as bonus to W. A and W
contributed P240,000 and P120,000,
respectively. How much is Q’s
adjusted capital balance after
formation?
REGION I AND CAR

168, 000
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Up!
REGION I AND CAR

09
jam: EASY
A, B and C formed a partnership
whereby A shall be credited for P120,000 by
contributing P100,000. B and C shall
contribute enough cash for their 20% and
30% interest in the partnership, respectively
and to cover their respective share in the
bonus to A. What is B’s cash
contribution?
a. P56,000 c. P48,000
b. P52,000 d. P40,000
REGION I AND CAR

a
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REGION I AND CAR

10
jam: EASY
Zeus and Raymund formed a partnership agreeing
to share profits 40:60, respectively. Zeus contributed a
special equipments which cost him P200,000. Raymund
contributed a parcel of land which he purchased for
P300,000 three years ago. The equipment and the land
have current fair market value of P150,000 and
P400,000, respectively, but the partners agreed that
the equipment and the land will booked at cost. The
bonus method shall be used for whatever fair value
adjustments. What is Zeus’ adjusted capital after
the formation?
a. P200,000 c. P130,000
b. P150,000 d. P110,000
REGION I AND CAR

A
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REGION I AND CAR

End of
Easy round
REGION I AND CAR

01
jam: Average
D, E and F agreed to share profit and losses as follows:
i. Salaries of P50,000, P40,000 and P20,000 to D, E
and F, respectively
ii. First P100,000 of profits after salaries, 20% bonus
to D
iii. Excess profits after salaries and the bonus to D
above P100,000, 10% bonus to E
iv. Residual profits or loss to F
The partnership made P250,000 net profit. How

much is E’s profit sharing?
REGION I AND CAR

P42,ooo
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REGION I AND CAR

02
jam: Average
Katrina and Horace formed a partnership.
They agreed to divide profits 40:30, respectively,
after providing for salaries of P10,000 to Katrina
and P20,000, to Horace and an interest on
beginning capital. Interest traceable to Katrina
and Horace were P4,000 and P2,000,
respectively. If Horace received total profit
sharing of P28,000, compute the partnership
profit during the year.
REGION I AND CAR

P50,000
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Up!
REGION I AND CAR

03
jam: Average
A, B and C are partners. A and B contributed
P100,000 and P200,000, respectively while C
contributes his industry. It was agreed that profit
shall be divided 40:40:20, respectively. During
the first year of operation, the partnership
incurred a loss of P30,000. C’s share in the
loss is?
a. P0 since C is an industrial partner

b. P0 since there is no stipulation exempting C
from losses
c. P6,000, equal to his profit sharing
d. P7,500, equal to the share of the capitalist
partner with the least profit sharing
REGION I AND CAR

a
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REGION I AND CAR

04
jam: Average
Blue and Rubi are partners who share profits
and losses in the ratio of 6:4, respectively. On
May 1, 2009, their respective capital accounts
were as follows:
Blue P60,000
Rubi 50,000
On that date, Lind was admitted as a partner

with a one-third interest in capital and profits for
an investment of P40,000. The new partnership
began with total capital of P150,000. Immediately
after Lind’s admission, Blue’s capital should
be
REGION I AND CAR

P54,000
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REGION I AND CAR

05
jam: Average
Western and Pate are partners with capital
balances of P60,000 and P20,000, respectively.
Profits and losses are divided in the ratio of
60:40. Western and Pate decided to form a new
partnership with Grant, who invested land valued
at P15,000 for a 20% capital interest in the new
partnership. Grant’s cost of the land was
P12,000. The partnership elected to use the
bonus method to record the admission of Grant
into the partnership. Grant’s capital account
should be credited for
REGION I AND CAR

P19,000
Time’s
Up!
REGION I AND CAR

06
jam: Average
Enzo Co. had 8,000 ordinary shares
outstanding in January 2016. The company
distributed a 15% share dividend in March
and a 10% share dividend in June 2016.
After acquiring 1,000 treasury shares in July
1, the company split its shares 4 for 1 in
December 2016. How many ordinary
shares are outstanding as of December
31, 2016?
REGION I AND CAR

P36,480
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Up!
REGION I AND CAR

07
jam: Average
Kyle Corporation was organized on January 1, 2016,
with an authorization of 1,000,000 ordinary shares with
a par value of P5 per share.
During 2016, the corporation had the following equity

transactions:
Jan. 4 - Issued 200,000 shares @ P5 per share.

April 8 - Issued 100,000 shares @ P7 per share.
June 9 - Issued 30,000 shares @ P10 per share
July 29 - Purchased 50,000 shares @ P4 per share.
Dec. 31 - Sold 50,000 shares held in treasury @ P8 per
share.
What should be the balance in the Share

Premium account as of December 31, 2016?
REGION I AND CAR

P550,000
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REGION I AND CAR

08
jam: Average
On December 1, 2016, Kc Corp. received a
donation of 2,000 shares of its P5 par value
ordinary shares from a shareholder. On that
date, the share’s fair value was P35 per share.
The share was originally issued for P25 per share.
By what amount would this donation cause
total shareholders’ equity to decrease?
REGION I AND CAR

p0
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REGION I AND CAR

09
jam: Average
The equity section of Buffett Company revealed the
following information on December 31, 2016:
Preference share capital, P100 par P5,000,000

Share premium-preference shares 2,000,000
Ordinary share capital, P50 3,200,000
Share premium-ordinary shares 500,000
Subscribed ordinary share capital 800,000
Retained earnings-appropriated 250,000
Unrealized loss on available for sale securities
600,000
Subscription receivable-ordinary shares 400,000
Retained earnings- unappropriated 3,500,000
Treasury shares-ordinary 1,000,000
How much is the contributed capital of Buffett

Company as of December 31, 2016?
REGION I AND CAR

P11,100,000
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REGION I AND CAR

10
jam: Average
Anil Company was organized on January 1, 2014. On
that date it issued 500,000, P10 par value, ordinary
shares at P15 per share. During the period January 1,
2014 through December 31, 2016, Anil reported profit of
P3,000,000 and paid cash dividends of P500,000. On
January 5, 2016, Anil purchased 50,000 ordinary shares at
P20 per share. On December 31, 2016, 45,000 treasury
shares were sold at P30 per share and retired the
remaining treasury shares. What is the total
shareholders’ equity on December 31, 2016?
REGION I AND CAR

P10,350,000
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REGION I AND CAR

End of
Average
round
REGION I AND CAR

01
jam: difficult
On June 30, 2009, the balance sheet for the partnership of
Coll, Boy, and Rei, together with their respective profit and loss
ratios, was as follows:
Assets, at cost P 180,000
Coll, loan P 9,000
Coll, capital (20%) 42,000
Boy, capital (20%) 39,000
Rei, capital (60%) 90,000
Total P 180,000
Coll has decided to retire from the partnership. By mutual

agreement, the assets are to be adjusted to their fair value of
P216,000 at June 30, 2009. It was agreed that the partnership
would pay Coll P61,200 cash for Coll’s partnership interest,
including Coll’s loan which is to be repaid in full No goodwill is to
be recorded. After Coll’s retirement, what is the balance of
Boy’s capital account?
REGION I AND CAR

P45,450
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REGION I AND CAR

02
jam: difficult
The following condensed balance sheet is presented for the
partnership of Smith and Jones, who share profits and losses in
the ratio of 60:40, respectively:
Other assets P 450,000
Smith, loan 20,000
P 470,000
Accounts payable P 120,000
Smith, capital 195,000
Jones, capital 155,000
P 470,000
The partners have decided to liquidate the partnership. If the

other assets are sold for P385,000, what amount of the
available cash should be distributed to Smith?
REGION I AND CAR

P136,000
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REGION I AND CAR

03
jam: difficult
On August 16, 2008, Tyron, Dana and Ira form a
partnership investing cash of P105,000, P94,500 and
P29,400, respectively. The partners share profits 3:2:2
and on October 29, 2008, they have cash of P7,000, and
other assets of P332,500; liabilities are P179,200. On this
date they decided to go out of business and sell all the
assets for P210,000. Ira has personal assets of P10,500
that may, if necessary, be used to meet partnership
obligations.
How much should be distributed to Dana upon

liquidation of the partnership?
REGION I AND CAR

P34,020
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REGION I AND CAR

04
jam: difficult
Presented below is the condensed balance sheet of the
partnership of A, B and C who share profits and losses in the ratio
of 6:3:1, respectively:
Cash P 85,000 Liabilities P 80,000
Other assets 415,000 A, capital 252,000
B, capital 126,000
- C, capital 42,000
P 500,000 Total P 500,000
The partners agree to sell to D 20% of their respective capital

and profit and loss interest for a total payment of P90,000. The
payment by D is to be made directly to the individual partner.
The partners agree that implied goodwill is to be recorded prior
to the acquisition by D. The capital balances of A, B and C,
respectively after the admission of D are:
REGION I AND CAR

Time’s
P216,000; P108,000; 36,00
Up!
REGION I AND CAR

05
jam: difficult
On December 31, 2008, the accounting records of Armand,
Bernard and Carlos Partnership included the following
information:
Armand, drawings (debit balance) P(24,000)
Carlos, drawings (debit balance) (9,000)
Bernard, Loan 30,000
Armand, capital 123,000
Bernard, capital 100,500
Carlos, capital 108,000
Total assets amounted to P478,500, including P52,500 cash and

liabilities totaled P150,000. The partnership was liquidated on
December 31, 2008 and Carlos received P83,250 cash pursuant
to the liquidation. Armand, Bernard and Carlos share net income
and losses in a 5:3:2, respectively. How much will Armand
receive?
REGION I AND CAR

P59,625
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REGION I AND CAR

06
jam: difficult
On May 1, 2016 Lett Corp. declared and issued a
15% share dividend. Prior to this dividend, Lett had
100,000, P1 par value, ordinary shares issued and
outstanding. The fair value of Lett's ordinary share
was P20 per share on May 1, 2016. As a result of
this share dividend, Lett's retained earnings
a. increased by P300,000.
b. decreased by P300,000.
c. decreased by P15,000.
d. did not change.
REGION I AND CAR

b
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REGION I AND CAR

07
jam: difficult
Tekka Corporation was incorporated on June 1, 2016 with an
authorized 200,000, no-par, ordinary shares, stated value P10
and 10,000, 9% par value P30, preference shares. Transactions
affecting company’s equity as of July 31, 2016 were as follows:
June 1 50,000 ordinary shares were issued at P10.

June 5 Assets with a total appraised value of P600,000 were
acquired in exchange for 50,000 ordinary shares.
June 15 Subscriptions were received for 100,000 ordinary shares
at P15 and for 5,000 preference shares at P35.
June 25 Payments in full for the ordinary and preference shares
subscribed June 15 were received and the corresponding shares
were issued.
The total shareholders’ equity as of July 31, 2016 is
REGION I AND CAR

P2,775,000
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REGION I AND CAR

08
jam: difficult
On March 1, 2016, Mall Company issued 60,000,
P50 par value, ordinary shares and 20,000, P100
par value, preference shares for a total
consideration of P7,500,000. At this date, the
ordinary share was selling for P100 per share and
the preference share was selling for P150 per share.
What amount of the proceeds should be

allocated to the preference shares?
REGION I AND CAR

P2,500,000
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REGION I AND CAR

09
jam: difficult
The following balances are shown in the shareholders' equity
of tamarind company on December 31, 2015:
Preference share capital, P10 par, 100,000 shares P1,000,000

Ordinary share capital, P10 par,500,000 shares, 5,000,000
Share premium - preference 50,000
Share premium – ordinary 200,000
Retained earnings 100,000
During 2016, the following transactions pertaining to the

shareholders' equity were completed:
• Retirement of 5,000 preference shares at P11 per share.
• Purchase of 5,000 ordinary shares at P12 per share.
• Share split, ordinary, 2 for 1.
• Reissue of 2,000 treasury shares at P8 per share.
• Profit for 2016, P300,000.
The total shareholders' equity on December 31, 2016 is

REGION I AND CAR

P6,551,000
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REGION I AND CAR

10
SRAW: difficult
The following data were compiled prior to preparing the
statement of financial position of Marc Corporation.
Authorized share capital, P100 par value P4,000,000

Cash dividends payable 160,000
Donated capital 800,000
Gain on sale of treasury shares 80,000
Net unrealized loss on available for sale securities 96,000
Premium on share capital 320,000
Premium on bonds payable 240,000
Reserve for bond sinking fund 400,000
Reserve for depreciation 600,000
Revaluation increment on property 800,000
Retained earnings, unappropriated 720,000
Subscribe share capital 480,000
Subscriptions receivables 120,000
Share warrants outstanding 200,000
Treasury shares, at cost 144,000
Unissued share capital 800,000 NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTA
How much is the Legal capital? REGION I AND CAR

Time’s
P3,680,000
Up!
REGION I AND CAR

End of
difficult
round
REGION I AND CAR

01
jam: clincher
A, B and C are partners. A and B are capitalist
but C is an industrial partner. Which statement is
incorrect?
a. The partnership agreement is void if it provides

that C shall share in any profit but not of any loss.
b. C shall be liable for losses if so agreed by the
partners.
c. The partnership agreement is void if B share
for the profit but not of the losses
d. The partnership agreement is void if B shares
for the losses but not profits
REGION I AND CAR

a
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REGION I AND CAR

02
jam: clincher
Cabrera, Mateo and Ampil agreed to the
following profit sharing:
• Salary of P20,000 and P30,000 to Mateo
and Ampil, respectively.
• Residual profit sharing of 50:30:20 to
Cabrera, Mateo and Ampil, respectively.
• Guaranteed minimum profit sharing of
P40,000 to Cabrera and P30,000 to Mateo,
respectively.
Compute the partnership profits if Ampil

received P40,000 profit sharing.
a. b. P120,000
b. c. P135,000 NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTA
c. d. P150,000
REGION I AND CAR
a
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REGION I AND CAR

03
SRAW: clincher
Katrina and Horace formed a
partnership. They agreed to divide
profits 40:30, respectively, after
providing for salaries of P10,000 to
Katrina and P20,000, to Horace and an
interest on beginning capital. Interest
traceable to Katrina and Horace were
P4,000 and P2,000, respectively. If
Horace received total profit sharing of
P28,000, compute the partnership
profit during the year.
a. P46,200 c. P56,000 REGION I AND CAR

b. P48,000 d. P50,000
d
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REGION I AND CAR

04
jam: clincher
The partnership reports profits
of P80,000, net of P20,000
salaries and P30,000 interest
and a bonus. The bonus is
computed as 20% of profits after
salaries and interest. Compute
the amount of the bonus.
a. P16,000 c. P26,000
b. P20,000 d. P32,500 REGION I AND CAR

b
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REGION I AND CAR

05
jam: clincher
Darrel, Rhad and Bal are
partners. The partners agreed to
share profit 40:30:20. Darrel
sold ½ o his interest to Rhad for
P100,000. Subsequently, the
partnership admitted Andrix for
a 10% interest. What is Rhad’s
profit sharing after Andrix’
admission?
REGION I AND CAR

a. 27% c. 50%
b
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REGION I AND CAR

NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS
REGION I AND CAR
End of
Junior
Accounting
masters

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NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION I AND CAR

NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTA

REGION I AND CAR

NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTA

REGION I AND CAR

REGION I AND CAR

NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTA

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a. P15 per share when the rights are exercised

b. P15 per share when the rights are issued

c. P10 per share when the rights are exercised

d. P15 per share when the rights are issued

NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTA

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Stock Dividend Share Split

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Retained Earnings Total Shareholders Equity

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The partnership made P250,000 net profit. How

NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTA

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NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTA

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NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTA

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NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTA

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a. P0 since C is an industrial partner

REGION I AND CAR

NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTA

REGION I AND CAR

On that date, Lind was admitted as a partner

NATIONAL FEDERATION JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTA

REGION I AND CAR