Salary allowances.d. Interest on capital balances.16 A partner who contributes money or property as well as his work or industry to thecapital of the partnership is calledIndustrial partnera.b. Capitalist partnerc. Managing partnerd. Capitalist-industrial partner17. Closing entries of a partnership include entries toa, record distribution of cash to the partners.b. eliminate the capital accounts and record the distribution of assets to partnersto effect the partnership termination and liquidation.C. close income and expense accounts to the income summary account; and thenclose the profits or losses to the drawing accounts.d. close the profits or losses and dividends declared accounts to retained earnings.18. Arzadon, Ballada and Castro are partners. Their contributions are as follows:Arzadon, P600,000; Ballada, P400,000 and Castro, services. The partners did notagree on how to divide profits or losses. If there is a loss of P100,000, how shouldthe loss be shared by the partners?a. Arzadon, P60,000; Ballada, P40,000 and Castro, nothing.b. Arzadon, P35,000; Ballada, P25,000 and Castro, P40,000.c. Arzadon, P35,000; Ballada, P35,000 and Castro, P30,000.d. Arzadon, P30,000; Ballada, P20,000 and Castro, P50,000.19. A 1:3:2 ratio is the same asa. 10%:30%:20%.b. 1/10:3/10:2/10.c. 1/6:1/2:1/3.d. 20%:50%:30%.20. Periodic withdrawals by partners are best viewed asa. expense of doing business.b. taxable income to the partners.C. distribution of partnership assets to the partners.d. payment for partners' personal services to the partnership. a. P30,000 decreaseb. P40,000 increaseC. P50,000 increased. P90,000 increaseParducho receive if profits and losses are distributed based on the ratio of daverage capital balances?a. P360,000b. P387,500c. P440,000d. P453,20012. Which of the following is not a component of the formula used to distribute profit?a. After all other allocations, the remainder divided according to the profit and losssharing ratio.b. Salary allowances to the managing partners.Interest on the average capital investments.C.d. Interest on notes to partners.13. A partner has a capital balance of P400,000 for five months, P500,000 for fourmonths, and P600,000 for three months. The average capital balance isa. P483,333.b. P485,000.C. P491,680.d. P500,000.14. Arzadon, Ballada and Castro are partners. Their contributions are as follows:Arzadon, P600,000; Ballada, P400,000 and Castro, services. Partners Arzadon,Ballada and Castro agreed to divide profits or losses in the ratio of 35:25:40,respectively. How should a loss of P100,000 be shared by the partners?20a. Arzadon, P30,000; Ballada, P20,000 and Castro, P50,000.b. Arzadon, P35,000; Ballada, P25,000 and Castro, P40,000.C. Arzadon, P35,000; Ballada, P35,000 and Castro, P30,000.d. Arzadon, P60,000; Ballada, P40,000 and Castro, nothing.a. Equally.b. Specified ratio.

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C. P50,000 increase d. P90,000 increase 11. Parducho had a P500,000 capital bal for four months. Burgos had a P3 P500,000 balance for seven months. Parducho receive if profits and loss average capital balances? a. P360,000 b. P387,500 C. P440,000 d. P453,200