THE HOLY LADY ACADEMY

Network Ave., Meralco Village, Lias, Marilao, Bulacan

S.Y. 2017-2018

MIDTERM EXAMINATION
in FUNDAMENTALS OF ACCOUTANCY, BUSINESS, AND MANAGEMENT 2
Grade 12

Name: _______________________________________ Score:_______________

Date :___________________Grade : _________________ Teacher: Ms. Benny B. Carpio

I. STATEMENT OF CHANGES IN EQUITY

There are three basic forms of business organizations, namely:
A. Corporation B. Partnership C. Sole Proprietorship
Choose your answer from the three basic forms of business organizations, and write the letter of the
correct answer on the space before the number.
________1. Allocation of net income is unique.
________2. It is managed by professional managers.
________3. Oftentimes, the owner is also a manager.
________4. It is owned by stockholders or shareholders.
________5. It is a business owned by two or more owners.
________6. It has legal personality separate from its owners.
________7. It is the simplest form of a business organization.
________8. The SFP and SoCE will present one capital account.
________9. It is the most complex form of business organization.
________10. There is allocating the net income to thousands of fast moving shareholders.

Answer the following questions correctly and properly.

PROBLEM #1: BBC STORE: SOLE PROPRIETORSHIP (15 points)
Belen Castro is the owner of the BBC Store. The store was established on January 1, 20xA. Belen
deposited 20,000.00PHP to a bank account in the name of BBC Store. She made four more deposits of
1,500.00PHP each during the year from her personal account. The store generated net income of
42,385.00PHP in 20xA. Belen regularly withdraws 2,000.00PHP per month from the stores banl
K account for her personal experience.

1. Determine the 20xA year-end balance of Belen Castro Drawings account.

2. Prepare a Statement of Changes in Equity for the year-ended December 31,20xA.

PROBLEM #2: PARTNERSHIP (25 points)

The NOR Partnership was established 20xC. The partners, Nick, Oscar, and Rene have January 1, 20xD
outstanding capital balances of 43,250.00PHP, 42,350.00PHP, and 45,550PHP respectively. Nick
contributed 20,000.00PHP, Oscar also contributed 18,000.00PHP, and Rene for 16,000.00 during 20xD.
The 20xD year-end balances of each partners Drawings account are as follows: Nick 10,000.00PHP,
Oscar 12,000.00PHP, and Rene 15,000.00PHP. The partnership generated net income of
110,000.00PHP in 20xD. According to the partnership agreement, the profit and loss sharing ratios are
as follows: 25%, 40%, and 35% for Nick, Oscar, and Rene.

1. Prepare the 20xD Statement Of Changes In Equity of NOR Partnership.

II. STATEMENT OF CASH FLOWS
1. What is a Statement of Cash Flow?(5 points)

2. T-account of Cash of BBC Company (15 points)

CASH bills
DEBIT CREDIT
January 1, 20x5 280,000PHP 1/28 Payment To Suppliers 65,000
1/15 Cash from cash sales 2,000 2/26 Payment Of Utility Bills 8. 368
2/16 Collection of AR 23,000 3/16Payment to employees 75,000
3/24 Cash from cash sales 3,500 4/15 Acquisition of computers 45,000
4/15 Collection of AR 33,000 5/12 Rent payments 26,000
5/20Additional contribution from 6/01 Payment to suppliers 10,000
Owner 76,500 7/05 Loan payment 15,000
6/15 Collection of AR 85,000 8/12 Interest payment 8,500
7/12Proceeds from bank borrowing 225,000 9/14 Owners drawing 3,800
8/15 Collection of AR 2 8,000
9/16 Cash from cash sales 8,000
10/12 Collection of AR 12,000
11/15 Collection of AR 18,000
Total Debit Total Credit
December 31, 20x5

3. Prepare the Statement of Cash Flow by re-arranging and classifying the transactions in the cash T-
account. (30 points)