Eli (80,000 x 3/4) 60,000.

00
George (40,000 x 3/4) 30,000.00
Dick (20,000 x 3/4) 15,000.00
105,000.00

Answer: A.
Amount paid 60,000.00
Less: Book value of interest acquired 48,000.00
Excess 12,000.00
Divide by: 40%
Goodwill 30,000.00

LL 35,000.00
QQ 55,000.00
DD 60,000.00

Answer: A.
Total agreed capital of the new partnership 180,000.00
Less: Total contributed capital 180,000.00
0

Kravitz capital balance 60,000.00

Kravitz contribution 50,000.00
Bonus 10,000.00

Elton 63,000.00
Don 57,000.00
Kravitz 60,000.00
Total agreed capital 180,000.00

Answer: B.
 Partners Actual Capital Agreed Capital Increase/(Decrease)
Old 940,000.00 1,000,000.00 60,000.00
New 250,000.00 250,000.00 20% -
1,190,000.00 1,250,000.00 60,000.00

Riley 560,000.00

Answer: C.
Total agreed capital 900,000.00
Less: Total contributed capital 490,000.00
Goodwill 410,000.00

Darrow's beginning capital balance 270,000.00

Answer: A.
Actual capital 150,000.00
Divide by: 5/6
Total capital 180,000.00
Multiply by: 1/6
DD's contribution 30,000.00

Answer: B.
 Coll (20%) Maduro (20%) Prieto (60%)
9,000.00 - -
42,000.00 39,000.00 90,000.00
51,000.00 39,000.00 90,000.00
7,200.00 7,200.00 21,600.00
58,200.00 46,200.00 111,600.00
- 61,200.00
- 3,000.00 - 750.00 - 2,250.00
45,450.00 109,350.00

Answer: C.
 Bolger (35%) Grossman (45%) Swenson (20%)
60,000.00 55,000.00 35,000.00
8,750.00 11,250.00 5,000.00
68,750.00 66,250.00 40,000.00
80,000.00
- 11,250.00

Answer: B.
(1) Goodwill method
Total agreed capital 20,000.00
Less: Total contributed capital 15,800.00
Goodwill to old partners 4,200.00

MM 8,520.00
NN 6,480.00
OO 5,000.00
Total agreed capital 20,000.00

(2) Bonus method

Total agreed capital 15,800.00
Multiply by: OO's capital interest 25%
Agreed capital to be credited to OO 3,950.00
Contributed capital of OO 5,000.00
Bonus to MM and NN 1,050.00

MM 6,630.00
NN 5,220.00
OO 3,950.00
Total agreed capital 15,800.00

Alternative 1: If goodwill is found to exist

MM NN OO
Goodwill method 8,520.00 6,480.00 5,000.00
Bonus method 6,630.00 5,220.00 3,950.00
Add: Goodwill (allocated equally) 1,400.00 1,400.00 1,400.00
8,030.00 6,620.00 5,350.00
(Gain) loss - bonus method 490.00 - 140.00 - 350.00

Alternative 2: If goodwill is not realized and

written-off as a loss
MM NN OO
Goodwill method 8,520.00 6,480.00 5,000.00
Less: Write-off goodwill (allocated equally) 1,400.00 1,400.00 1,400.00
7,120.00 5,080.00 3,600.00
Bonus method 6,630.00 5,220.00 3,950.00
(Gain) loss - bonus method 490.00 - 140.00 - 350.00

Answer: D or E
 Roy Gil Total
Capital, before adjustment 94,800.00 214,200.00 309,000.00
Less: Net adjustment - 11,800.00 - 23,600.00 - 35,400.00
Capital, after adjustment 83,000.00 190,600.00 273,600.00
Less: Portion covered by ordinary share, par P10
(720 shares to each partner) 7,200.00 7,200.00 14,400.00
Portion to be covered by preference share, par
P100 75,800.00 183,400.00 259,200.00

Shares to be issued:
Preference share 758.00 1,834.00 2,592.00
Ordinary share 720.00 720.00 1,440.00

Answer: B.