A, B and C have capital balances of P112,000, P130,000 and P58,000, respectively, and share

profits in the ratio 3:2:1. D is to invest cash in the partnership for a one-fourth interest.

Assume D receives one-fourth interest in the assets of the partnership, and D is credited with
P20,000 of the bonus from the old partners that is recognized upon D's admission. How much cash
must D invest (round off final answer to the nearest peso amount)? 73333
Assume D receives one-fourth interest in the assets of the partnership, which includes credit for
P25,000 of goodwill that is recognized upon admission. How much cash must D invest (round off
final answer to the nearest peso amount)? 75000

F, G and H are partners who agree to form a corporation. Their capital balances are F, P100,000;
G, P100,000 and H, P200,000 and they share profits equally. All their assets and liabilities are to
become the corporation's. Net assets of P400,000 will be revalued at P550,000. The substantial
revaluation is only from the land which H contributed to the partnership ten years ago at P100,000.
At P1 par value per share, how many shares of stocks will H receive? 250000
F, G and H are partners who agree to form a corporation. Their capital balances are F, P100,000;
G, P100,000 and H, P200,000 and they share profits equally. All their assets and liabilities are to
become the corporation's. Net assets of P400,000 will be revalued at P550,000. The substantial
revaluation is only from the land which H contributed to the partnership ten years ago at P100,000.
At P1 par value per share, how many shares of stocks will F receive? 150000

Terry, Vivian and Walter have decided to liquidate their partnership. Account balances on January
1, 2020 are, cash, P120,000, other assets P120,000, accounts payable P40,000, Terry, capital (30%)
P85,000, Vivian, capital (30%) P25,000 and Walter, capital (40%) P90,000 respectively. The
partners agree to keep a P10,000 contingency fund and to distribute available cash immediately.
How much cash will be distributed to Terry? 40000
A and B have capital balances of P65,000 and P35,000 and share profits 3:2. C is admitted as a
partner and is given 25% interest in the firm upon investing P40,000 cash. Profits are to be shared
5:3:2 by A, B and C. D subsequently enters the partnership by investing P25,000 for a 20% interest
in assets and a 20% share in the firm's profits. Former partners share the balance of profits in their
original ratio. Partner A has difficulty getting along with D and withdraws from the partnership.
The partnership pays P73,000 cash for A's interest. How much is the capital balance of C after A's
withdrawal under the bonus method (round off final answer to the nearest peso amount)? 31000

How much is the capital balance of D after A's withdrawal under the bonus method (round off
final answer to the nearest peso amount)? 30000
How much is the capital balance of B after A's withdrawal under the bonus method (round off
final answer to the nearest peso amount)? 31000

On December 31, 2019, the accounting records of MM, NN and OO Partnership (a general
partnership) included the following ledger account balances (see image below):

Total assets of the partnership amounted to P299,062.50, including P32,812.50 cash, and
partnership liabilities totaled, P93,750. The partnership was liquidated on December 31, 2019, and
OO received P52,031.25 cash pursuant to the liquidation. MM, NN and OO shared net income and
losses in a 5:3:2 ratio, respectively.

The cash received by MM after the liquidation is (round off to the nearest peso amount): 37266
The cash balance after payment of liabilities is (round off to the nearest peso amount): 156094
The loss on realization is (round off to the nearest peso amount): 49219
The cash received by NN after the liquidation is (round off to the nearest peso amount): 66797

The amount realized from sale of non-cash assets is (round off to the nearest peso amount):
217031

Gardo and Gordo formed a partnership on July 1, 2019 to operate two stores to be managed by
each of them. They invested P15,000 and P10,000 and agreed to share earnings 60% and
40%,respectively. All their transactions were for cash, and all their subsequent transactions were
handled through their respective bank accounts as summarized below:

Gardo
Cash receipts P39,550.00
Cash disbursements 31,137.50

Gordo
Cash receipts P32,622.50
Cash disbursements 35,347.50

On October 31, 2019 all remaining non-cash assets in the two stores were sold for cash of
P30,000. The partnership was dissolved, and cash settlement was effected. In the distribution of
the P30,000 cash, Gordo received (round off to the nearest peso amount): 17000
Gardo received (round off to the nearest peso amount): 13000
XX and YY are partners who have capital of P300,000 and P240,000 sharing profits in the ratio
of 3:2. ZZ is admitted as a partner upon investing P250,000 for 25% interests in the firm, white
the other partners continue to participate profits and losses in their original ratio. Given the choice
between goodwill and bonus method, ZZ will:
Prefer goodwill method due to ZZ’s gain of P70,000
Be indifferent for the goodwill and bonus methods are the same.
Cannot be determined.
Prefer bonus method due to ZZ’s gain of P17,500
Prefer bonus method due to ZZ’s gain of P70,000