Write T if the statement is True and F if the statement is False.

If the statement is false, change the underlined

word (s) to make the statement true.

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The capital accounts of the Guerrero and Alajar partnership on Sept. 30, 2019 were:
Guerrero, Capital(75% profit percentage) 140,000
Alajar, Capital (25% profit percentage) 56,000
Total capital 196,000

On Oct.1, Franco was admitted to a 35% interest in the partnership when he purchased 35% of each existing
partner’s capital for P100,000, paid directly to Guerrero and Alajar.

How much will be credited to Franco upon admission? *

1 punto

a.49,000
b.100,000
c.231,000
d.68,600

The solution to the above question: 

What is the capital balance of Alajar after the admission of Franco to the
partnership? *
1 punto

a. 36,400
b. 91,000
c. 56,000
d. answer not given

The solution to the above question. *

Alpha Co. capital balances are: Ace $30,000, Bly $25,000, and Cox $20,000. The partners share income
equally. Day is admitted to the firm by purchasing one-half of Cox’s interest for $13,000.

What was the book value of Cox’s interest sold to Day? *

1 punto

a. 23,000
b. 20,000
c. 10,000
d. 13,000

The solution to the above question: 

How much was Cox’s personal gain in selling her interest to Day? *
1 punto

a. 1,500
b. 2,000
c. 3,000
d. 0

The solution to the above question

At what amount that Day be credited as a new partner? *

1 punto

a.13,000
b. 20,000
c. 10,000
d. 23,000

The solution to the above question *

Capital balances in the MEM partnership are Mary, Capital $60,000, Ellen, Capital
$50,000, and Mills, Capital $40,000, and income ratios are 5:3:2, respectively. The
MEMO partnership is formed by admitting Oleg to the firm with a cash investment of
$60,000 for a 25% capital interest. The bonus to be credited to Mills, Capital in
admitting Oleg is: *
1 punto

a.$10,000.
b.$7,500.
c.$3,750.
d.$1,500

The solution to the above question *

Ceci Espiro and Nick Aduana are partners of Midsayap Fastfood who sahred profit and loss in the ratio of 2:3.
Their respective capital balances are P30,000 and P45,000. Bob Gelacio is admitted in the partnership by
investing cash of P20,000 for a 1/5 interest in the new firm.

How much was the total contributed capital of the partners? *

1 punto

a.75,000
b.95,000
c.100,000
d.110,000

The solution to the above question: *

How much was the bonus and to whom shall it be given? *
1 punto

a.1,000 to the new partner

b.1,000 to the old partners
c.5,000 to the new partner
d.5,000 to the old partners

The solution to the above question 

How much is the share of Espero and Aduna on the bonus? *

1 punto

a.400 and 600, respectively

b.600 and 400, respectively
c.3,000 and 2,000, respectively
d.2,000 and 3,000, respectively

The solution to the above question *

The Statement of Financial Position of Weny Panganiban and Jessica Salisana showed among others the
following capital balances just before Judylaine Berhay is admitted in the partnership by investing P500,000
for a ¼ interest in the partnership.
Partners Capital Fractional share
Panganiban 950,000 5/10
Selisana 890,000 5/10

The partner’s agreed to make adjustments on the valuation of the following current and non-current assets:
a. Allowance for doubtful accounts should be increased from P10,000 to P15,000.
b. Merchandise should be revalued from P100,000 down to P85,000.
c. Equipment’s net book value of P115,000 should be revalued at P130,000 based on the fair market value.
Prepare adjusting entries to recognized the revaluation of assets and closing entry to
close the "Capital Adjustment" account to the old partner's capital accounts. *

Prepare T.C.C and T.A.C. table to determine the bonus and capital balances of the partners
after admission.

Journal entries to record the investment