The following balances as at October 31, 2019 for the Partnership of Kokoy, Loloy and

Momoy were as follows:

Cash P50,000 Liabilities 15,000

Loloy, Loan 15,000 Kokoy, Loan 22,500
Non-cash assets 400,000 Kokoy Capital 105,000
Loloy Capital 97,500
Momoy Capital 225,000

Kokoy has decided to retire from the partnership on October 31. Partners agree to
adjust the non-cash assets to their fair market value of P490,000. The estimated
profit to October 31 is P100,000. Kokoy will be paid P173,000 for his partnership
interest inclusive of his loan which is repaid in full. Their profit and loss ratio is
3:3:4 to Kokoy,Loloy and Momoy respectively.