Partnership Accounting Prequalifying SolMan

Junior Philippine Institute of Accountants
Revamped and Reimagined Project Ulikid

Partnership Accounting
Pre-qualifying Exams
April 28, 2023
➷ Short Problems
1. Joaq and Matt formed a partnership. Joaq invested cash of P 500,000 and machinery measured at
fair value. On the other hand, Matt contributed cash worth P 200,000 and equipment. At partnership
formation the capital balances of each partner had a ratio of 6:5. The total capital at year-end is P
1,080,950. Net loss amounted to P 19,050 The partners agreed that their profit and loss ratio would
be 35:65. No other transaction related to the capital balances of the partners occurred other than
mentioned above. How much is the fair value of the machinery and equipment at partnership
formation?
Use the following data for questions 2-3.

Gracel Eroll
Cash P390,000 P250,000
Machinery and Equipment 300,000 470,000
Building --- 1,350,000
Furniture and Fixtures 560,000 —
The partnership will assume a mortgage on the building which amounts to 350,000. The partners
have agreed to share the profits and losses equally.
2. On March 31, 2023, the balance in Eroll’s capital account should be?
3. Assuming that the mortgage amounts to 500,000 and will not be assumed by the partnership, the
balance in Eroll’s capital account should be?

On January 1, 2023, Miggy and Mathia decided to combine their businesses and form a partnership.
Their balance sheets on January 1 showed the following balances.
Account Titles Miggy Mathia
Cash P 9,000 3,750
Accounts Receivable 18,500 13,500
Inventories 30,000 19,500
Furnitures and Fixtures 30,000 9,000
Office Equipment 11,500 2,750
Prepaid Expenses 6,375 3,000
Intangibles 10,000 5,000
Total Assets P 115,375 P 56,500
Accounts Payable 45,750 18,000
Capital 69,625 38,500
Total P 115,375 P 56,500
This document is strictly private, confidential, and should not be shared to any third party.
Any violation of this clause gives JPIA - USLS the right to seek legal recourse.
1
April 28, 2023
The both of them agreed to have the following items recorded in their books
● Provide 2% allowance for doubtful accounts.
● Miggy’s furniture and fixtures should be 31,000, while Mathia’s Office Equipment is
under-depreciated by 250.
● Rent expense incurred by Miggy was not yet recorded, it amounted to 1,000, while
Mathia’s Salaries Expense was not recorded and it amounted to 800
● Inventory had a fair value of 29,500 for Miggy, and 21,000 for Mathia
4. Compute for the net (debit) credit adjustment for Miggy and Mathia.
5. Using the data from the previous item, what are the total liabilities of the partnership after formation.
6. Using the data from item number 4. What are the total assets of the partnership after formation.
7. A business owned by Nicole was short of cash and she decided to form a partnership with Franz, who
was able to contribute cash twice the interest of Nicole in the new partnership. The assets
contributed by Nicole appeared as follows in the balance sheet of her business: Cash 5,000;
accounts Receivable 74,500 with an allowance for doubtful accounts of 3,000; inventory 190,000;
store equipment 75,000 with accumulated depreciation of 15,000. Nicole and Franz agreed that the
allowance for doubtful accounts was inadequate and should be 5,000. They also agreed that the fair
value for the inventory is 230,000 and 60,000 for the store equipment. The cash to be contributed by
Franz into the partnership is:
8. Gevi, Alcher, and Tine decided to form the GAT Partnership. It was agreed that Gevi would contribute
computer equipment with an assessed value of P100,000 with a historical cost of P900,000 and
accumulated depreciation of P700,000. Gevi, a day after the partnership was formed, the computer
equipment was sold for P 300,000. Alcher will contribute a parcel of land and a building with a
carrying amount of P1,200,000 and a fair value of P1,500,000. The land and building are subject to a
mortgage payable amounting to P300,000 to be assumed by the partnership. The partners agreed
that Alcher would have a 60% capital interest in the partnership. The partners also agreed that Tine
would contribute sufficient cash to the partnership. What are the agreed capitalization and cash to be
contributed by Tine?
9. Lachica, Billote, and Malutao formed a partnership on March 1, 2021. Lachica contributed cash
amounting to P500,000, while Billote contributed inventory with a fair market value of P200,000, and
finally, Malutao contributed a building with a fair value of 250,000. Due to Billote’s reputation in the
industry, both Lachica and Malutao agreed that Billote should have 50% of the total capital of the
partnership. The three agreed to recognize goodwill. How much is the total goodwill to be recognized
and what is the capital balance of Billote after the goodwill is recognized?
10. On December 1, 2022, John and Rey formed a partnership, and both agreed to share the profits and
losses at a ratio of 1:2, respectively, John invested a parcel of land that cost him 50,000. Rey invested
cash of 60,000. The parcel of land was sold for 100,000 3 hours after the formation of the partnership.
How much should be the capital balance of John after formation?
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April 28, 2023
11. JO and MN Partnership has the following amounts on the ledger:
Sales 70,000
Purchases 80,000
Purchase Discounts 5,000
Expenses 10,000
Salary Allocation to partners 13,000
Interest Paid to Banks 2,000
Withdrawals 8,000
Ending Inventory costs 35,000. Determine the Partnership Net Income (Loss).
12. Partners Marie and Juana have capital balances in a partnership of P400,000 and P600,000,
respectively. They agree to share profits and losses as follows:
Marie Juana
As salaries P100,000 P120,000
As interest on capital at the beginning of the year 10% 10%
As a bonus after salaries, interests and bonus 5%
Remaining profits or losses 34% 66%
If income for the year was P446,000, what will be the distribution of residual income to Juana?
13. Mikee and Felix are partners. For several years they have shared profits and losses at 35% and 65%
respectively. Felix has indicated that he is going to reduce his involvement in the partnership so the
profit and loss ratio is being modified to 55% and 45% respectively. At the da of the change in the
profit and loss ratio, the partnership owned a vacant parcel of land with a market value and a book
value of 150,000. Mikee and Felix compile a list of assets with market and book value differences.
Two years after the change in the profit and loss ratios, the land is sold for 450,000. How much of the
gain is allocated to Felix?
14. Give and Up has a partnership agreement that interest at 10% per annum is to be credited to each
partner on the basis of the weighted-average capital balances. A summary of the capital account of
UP for the year ended, December 31, 2022, is as follows:
Balance, January 1 420,000

Additional Investment, June 30 120,000
Withdrawal. July 31 (45,000)
Balance, December 31 495,000
How much is the interest to be credited to UP’s capital account for the year 2022?
15. Partner Bye first contributed 50,000 of capital into an existing partnership on April 1, 2023. On June 1,
2021, the partner contributed another 30,000. On October 31, 2023, the partner withdrew 12,000 from
the partnership. Withdrawals in excess of 8,000 are charged to the partner’s capital account. The
annual weighted-average capital balance is?
3
April 28, 2023
16. Hat and Dog share profits and losses at a ratio of 2:3, both partners receive salaries amounting to
20,000 and 30,000 respectively, and both receive a 12% interest on their average capital balances.
Average capital balances are calculated at the beginning of each month regardless of when
contributions and withdrawals were made, and partners' drawings are not used in determining the
average capital balances. Total net income for 2023 is 120,000
Hat Dog
Capital, January 1 100,000 120,000
Drawings (2,000 24,000 24,000
monthly)
Permanent Withdrawals:
June 3 (20,000)
May 2 (15,000)
Additional Investments
July 3 50,000
October 2 20,000
What is the weighted average capital for hat and dog respectively?
17. Philip, Ryx, and Matt formed a partnership with Philip contributing P30,000, Ryx contributing P50,000,
and Matt contributing P40,000. If the partnership had an income of P75,000 for its first year of
operation, what amount of income would be credited to Dem's capital account?
18. Shaddy, a partner of the Bye BABA, the partnership has a 30% participation in partnership profits
and losses. Shaddy’s capital account has a net decrease of 1,200,000 during the year 2022. In 2022,
Shaddy withdrew 2,600,000 and contributed property with a fair value of 500,000. What was the net
income of the Bye BABA partnership?
19. Sheesh Partnership was formed on January 1, 2021. The partners G, K, and Z contributed 120,000
each. Salaries were to be allocated 30,000 each for G and K and for Z 45,000. Drawings were equal
to salaries and be taken out evenly throughout the year. With sufficient income G and K could split a
bonus equal to 20% of the partnership net income after salaries and bonuses. The remaining profit is
to be divided using a 3:3:4 ratio. For the current year, the net income was 240,000. Compute the
ending capital of each partner
20. Josh and Myrrh are in a partnership, and their current profit and loss ratios of 70/30 are being
changed to 60/40. The partners decide to adjust their capital accounts at the date of the change in the
profit and loss ratios to reflect the difference between market value and the book value of assets and
liabilities. At the date of the change, land has a market value of 250,000 and a book value of 120,000
How much will Myrrh’s capital account be adjusted at the date of the change in the profit and loss
ratios?
4
April 28, 2023
21. Angel contributed 24,000 and Dyther contributed P48,000 to form a partnership, and they agreed to
share profits in the ratio of their original capital contributions. During the first year of operations, they
made a profit of P16,290; Angel withdrew P5,050 and Dyther P8,000. They agreed to admit Ralph
into the partnership at the start of the following year. He received a one-fourth interest in the capital
and profits upon payment of P30,000 to Angel and Dyther, whose capital accounts were to be
reduced by transfers to Ralph's Capital account of amounts sufficient to bring them back to their
original ratio. How should the P30,000 paid by Ralph be divided between Angel and Dyther?
22. The partnership of Christien and Junhuy is being dissolved, and the assets and equities are at book
value and fair value and profit and loss ratios in January.
Book Value Fair Value

Cash P 20,000 P 20,000
Accounts receivable P 100,000 P 100,000
Inventories P 50,000 P 200,000
Plant asset -net P 100,000 P 120,000
P270,000 P440,000
Accounts Payable P 50,000 P 50,000
Christien, Capital (50%) P 120,000
Jun-huy (50%) P 100,000
P 270,000
Christien, and Jun-huy agree to admit Ming-huyy into the partnership for a one-third interest.
Ming-huyy invested P95,000 cash and a building to be used in the business with a book value to
Ming-huyy for P100,000 and a fair value of P120,000. Compute the capital balance of Jun-huy after
admission, assuming that the assets are revalued and goodwill is recognized.
23. IU-ah and Lee Jongsuksuk entered into a partnership on May 31, 2024, contributing cash of P48,000
and P32,000, respectively, and agreeing to divide earnings in the ratio of their initial investments after
allowing an annual salary allowance of P12,000 each. On December 31, 2024, the income summary
account had a credit balance of P34,000, while the drawing accounts showed debit balances of
P14,000 for IU-ah and P10,000 for Lee Jongsuksuk.
At the beginning of the next year, Lee Duyan-ta was admitted into the firm as a new partner with a 33
⅓% interest for a capital credit equal to his cash investment of P60,000. IU-ah and Lee Jongsuksuk
then affected a private cash settlement between themselves in order to make the capital balances
conform to a new profit-sharing ratio of 4:2:3, respectively, with salary allowances scrapped. How
much of the amount of the private cash settlement affected the old partners?
24. On June 30, 2024, the balance sheet of YGV, a partnership, is summarized as follows: Yohan, Assets
P150,000, Gabi, Capital P90,000, and Travilla, Capital P60,000. Gabi and Travilla share profit and
losses at a 60:40 ratio, respectively. They agreed to take in Grasya as a new partner, who purchases
⅛ interest of Gabi and Travilla for P25,000. What is the amount of Grasya’s capital to be taken up in
the partnership books if the book value method is used?
5
April 28, 2023
25. Sung Tuk and Choi Usik are partners with capital balances of P60,000 and P20,000, respectively.
Profits and losses are divided in the ratio of 60:40. Sung Tuk and Choi Usik decided to form a new
partnership with Gabi Nah, who invested land value at P15,000 for 20% capital interest in the new
partnership. Gabi Nah’s cost of the land was P12,000. The partnership elected to use the bonus
method to record the admission of Gabi Nah into the partnership. Gabi Nah’s capital account should
be credited for the?
26. Jimbo, JoJo, and Jiji are partners with capital accounts of P120,000, P90,000, and P70,000,
respectively. The partners share profits and losses of 45%, 30%, and 25% respectively. The
partnership is considering Jolly joining the partnership by investing directly in the firm. The partners
intend to revalue the assets before Jolly’s admission. Neither bonus nor goodwill is required. If the
asset’s market value exceeds the book value of P200,000, how much will Jolly invest in acquiring the
21% equity interest in the partnership?

In the SM partnership, Skhan Ta’s capital is P198,983 and Maria Clara’s is P47,890 and they share
income in a 3:1 ratio respectively. They decided to admit Crisostomo Ibarra to the partnership. Skhan
Ta and Maria Clara agree that some of the inventory is obsolete. The inventory account is decreased
before Ibarra is admitted. Ibarra invests P56,400 for a one-fifth interest.
27. What is the amount of the inventory written down?

28. If Ibarra directly purchased a one-fifth interest by paying Skhan Ta P47,890 and Maria Clara
P12,340. The land account is increased before Ibarra is admitted. By what amount is the land
account increased?
29. Chien-Po and Chi-Fu formed a partnership and agreed to divide initial capital equally, even though
Chien-Po contributed P30,000 and Chi-Fu contributed P26,000 in identifiable assets. The bonus
approach adjusts the capital accounts. Chi-Fu unidentifiable assets should be debited for?
30. The capital accounts of the partnership of Mirabel, Isabela, and Luisa on June 1, 2023, are presented
below with their respective profit and loss ratios
Mirabel P 1,567,900 1/2

Isabela P 2,349,850 1/3
Luisa P 989,700 1/6
On June 1, 2023, Bruno was admitted to the partnership when Bruno purchased, for 1,357,400, a
proportionate interest from Mirabel and Luisa in the net assets and profits of the partnership. As a
result of a transaction, Bruno acquired a one-fifth interest in the net assets and profits of the firm.
What is the combined gain realized by Mirabel and Luisa upon the sale of a portion of their interest in
the partnership to Bruno?
6
April 28, 2023
Maria Clara, Maria Klay, and Maria Louisita are partners in a firm that is being liquidated. They share
profits and losses of 55 percent, 20 percent, and 25 percent, respectively. When the liquidation begins
they have capital account balances of P108,000, P62,000, and P56,000, respectively. The
partnership just sold equipment with a historical cost and accumulated depreciation of P25,000 and
P18,000, respectively for P10,000.
31. What is the balance in Maria Klay’s capital account after the transaction is completed?
32. What is the balance in Maria Clara’s capital account after the transaction is completed?
33. What is the balance in Maria Louisita’s capital account after the transaction is completed?
34. Don Crisostomo Ibarra, Don Fidel, and Don Tiago are liquidating their partnership. On the date, the
liquidation begins Don Crisostomo Ibarra, Don Fidel, and Don Tiago have capital balances of
P147,376, P263,471, and P286,999, respectively and the partners share profits and losses of 35%,
25%, and 40%, respectively. In addition, the partnership has P28,000 Notes payable to Don
Crisostomo Ibarra and P15,000 notes receivable from Don Tiago. When liquidation begins, what is
the loss of absorption power with respect to Don Crisostomo Ibarra?

Mamasita, Papasita, and Titisito, share profits and losses in the ratio of 4:3:3 respectively:
Cash P 178,903 Liabilities P 189,577

Other Assets P 345,002 Mamasita, P 48,000
Capital
Total P 523,905 Papasita, P 216,000
Capital
Titosito, Capital P 70,328
Total P 523,905
The partners agreed to liquidate the partnership after selling other assets for P200,000.
35. Upon the liquidation of the partnership. Papasita should have received an amount of?
36. Upon the liquidation of the partnership. Titosito should have received an amount of?

Seniorita Augustina, Seniorita Lasalita, and Seniorita Felicita share profits and losses in the ratio of
4:3:3 respectively. The condensed balance sheet of Seniorita Partnership as of December 31, 2022.
Cash P 50,000 Liabilities P 40,000

Other P 130,000 Seniorita Augustina Capital P 60,000
Assets
Total P 180,000 Seniorita Lasalita, Capital P 40,000
Seniorita Felicita, Capital P 40,000
Total P 180,000
7
April 28, 2023
The partners agreed to liquidate the partnership after selling other assets for P250,000. Upon the
liquidation of the partnership.
37. Seniorita Augustina’s share of gains in selling other assets would be?
38. What would be the total cash received by Seniorita Lasalita and Seniorita Felicita?

As of December 31, 2022, the books of JPIA Partnership showed a capital balance of Jeju P40,000,
Pyongyang P25,000, Iasaka P5,000. The partners’ profit and loss ratio was 3:2:1, respectively. The
partners decided to liquidate and they sold all non-cash assets for P37,000. After the settlement of all
liabilities amounting to P12,000, they still have cash of P28,000 left for distribution.
39. Assuming that any capital debit balance is uncollectible, the share of Jeju in the distribution of the
P28,000 cash would be?
40. What would be the total Cash received by Jeju and Pyongyang?
8
April 28, 2023
➷ Solution
1. 100,000 & 300,000
2. 1,720,000
3. 2,070,000
4. (870) & 180
9
April 28, 2023
5. 65,550
6. 172,985
7. 729,000
8. 2,000,000 & 500,000
10
April 28, 2023
9. 750,000 & 550,000
10. 100,000
11. 18,000
12. 79,200
11
April 28, 2023
13. 165,000
14. 46,125
15. 54,333
12
April 28, 2023
16. 77,500 & 114,583
17. 25,000
18. 3,000,000
13
April 28, 2023
19. 165,000; 165,000; 165,000
20. 13,000 Increase
21. P 9,300
Angel Dyther Total

Capital Balances before net income ₱24,000.00 ₱48,000.00 ₱72,000.00
Net Income ₱5,430.00 ₱10,860.00 ₱16,290.00
Drawings -₱5,050.00 -₱8,000.00 -₱13,050.00
₱24,380.00 ₱50,860.00 ₱75,240.00
Amount Paid ₱30,000.00

Less Book Value (75,240/0.25) -₱18,810.00
Gain on Angel and Dyther ₱11,190.00
14
April 28, 2023
Angel Dyther Total

Capital Blances before admission ₱24,380.00 ₱50,860.00 ₱75,240.00
Required Capital Balances ₱18,810.00 ₱37,620.00 ₱56,430.00
Transfer of capital ₱5,570.00 ₱13,240.00 ₱18,810.00
Add personal gain (1/3: 2/3) ₱3,730.00 ₱7,460.00 ₱11,190.00
Personal Cash Contribution ₱9,300.00 ₱20,700.00 ₱30,000.00
22. P 205,000
Total agreed capital P 645,000
Less: Total Contributed Capital P 605,000
Goodwill to old partners P 40,000
Christien P 205,000
Jun-huy P 185,000
Total Contributed capital P 390,000
Add: Contribution of Ming-huyy P 215,000
Total Contributed Capital P 605,000
Junhuy P185,000 (40,000 x ½) P 205,000
23. P 9,000
Total Agreed Capital ₱180,000.00

Less: Total Contribution Capital
(48,000 + 32,000) ₱80,000.00
Net Income ₱34,000.00
Drawings -₱24,000.00
Contributed Capital ₱90,000.00
Investment of Lee Duyan-ta ₱60,000.00 ₱150,000.00
₱30,000.00
15
April 28, 2023
IU-ah
Initial Investment ₱48,000.00
Net Income ₱19,000.00
Drawings -₱14,000.00
Capital Balance ₱53,000.00
Goodwill ₱18,000.00
₱71,000.00
Required Capital Balance (4:2:3) ₱80,000.00
Private cash settlement ₱9,000.00
24. P 18,750
Amount Paid P 25,000
Less: Book Calue of Interest Acquired P 18,750

P150,000 x 1/8
Gain of Gabi and Travilla P 6,250
25. P 19,000
Total Agreed capital P 95,000
Multiplied by: Gabi Nah 20%
Agreed Capital to be credited to Gabi Nah P 19,000
26. {(P120,000 + P90,000 + P70,000 + P200,000)/.79} (.21)

607,594.94 or 607,595 (0.21) = P 127,594.95 or 127,595
16
April 28, 2023
27.
Total agreed capital after the admission of Ibarra
(56,400 x 5) P 282,000
Less: Contribution/Investment of Ibarra P 56,400
P 225,600
Capital Contribution (P198,983 + P47,890) P 246,873
Reduction of inventory P 21,273
28.
Amount paid (P47,890 + P12,340) P 60,230
Less: Book value (P198,983 + P47,890) x 1/5 P 49,374.6
P 10,855.4
Divide by/capitalized at 1/5
Amount of land to be increased P 54,277
29. Unrecognized assets are not taken into account when using the bonus approach. The FMV of the
partners' tangible investments makes up the total resultant capital. Thus, the formation of this new
partnership would not recognize any unidentified assets. 0
30.
Amount Paid P 1,357,400
Less: Book value of the interest acquired

(P1,567,900 + 2,349,850 + 989,700) x 1/5 P 981,490
Gain of Maribel and Luisa P 375,910
31. 62.000 + [10,000 - (25,000-18,000)] (0.20)

= 62,600
32. 108,000 + [P10,000 - (25,000 - 18,000)] (0.55)
= 109,650
33. 56,000 + [P10,000 - (25,000 - 18,000)] (0.25)
= 56,750
34. (147,376+28,000)/.35 = 501,074.29
17
April 28, 2023
35. P 172,499.40
Mamasita Papasita Titosito
Capital Balances P 48,000.00 P 216,000.00 P 70, 328.00
Loss on Realization P 58,000.80 P 43,500.60 P 43,500.60

(P345,002 - P200,000)
Cash Received P 172,499.40 P 26,827.40
36. P 26,827.40
18
April 28, 2023
37. P 48,000
S. Augustina S. Lasalita S. Felicita
Capital Balances P 60,000 P 40,000 P 40,000
Gain on Realization P 48,000 P 36,000 P 36,000

(P250,000 - P130,000)
Cash Received P 108,000 P 76,000 P 76,000

38. P 152,000
39. P 17,800
Jeju Pyongyang Iasaka Total
Capital Balances P 40,000 P 25,000 P 5,000 P 70,000
Loss on Realization ( 21,000) (14,000) (7,000) (42,000)
Balances P 19,000 P 11,000 ( P 2,000) P 28,000
Loss on Possible (P 1,200) (P 800) P 2,000 0

Insolvency of Iasaka
IA: 3:2
Cash Received P 17,800 P10,200 0 P28,000
40. P28,000
19

Partnership Accounting Prequalifying SolMan

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Junior Philippine Institute of Accountants

Revamped and Reimagined Project Ulikid

Use the following data for questions 2-3.

Use the following data for questions 4-6.

11. JO and MN Partnership has the following amounts on the ledger:

Balance, January 1 420,000

Book Value Fair Value

Use the following data for questions 27-28.

27. What is the amount of the inventory written down?

Mirabel P 1,567,900 1/2

Use the following data for questions 31-33.

Use the following data for questions 35-36.

Cash P 178,903 Liabilities P 189,577

Use the following data for questions 37-38.

Cash P 50,000 Liabilities P 40,000

Use the following data for questions 39-40.

1. 100,000 & 300,000

4. (870) & 180

8. 2,000,000 & 500,000

9. 750,000 & 550,000

16. 77,500 & 114,583

19. 165,000; 165,000; 165,000

20. 13,000 Increase

Angel Dyther Total

Amount Paid ₱30,000.00

Angel Dyther Total

Less: Total Contributed Capital P 605,000

Goodwill to old partners P 40,000

Total Contributed capital P 390,000

Add: Contribution of Ming-huyy P 215,000

Total Contributed Capital P 605,000

Junhuy P185,000 (40,000 x ½) P 205,000

Total Agreed Capital ₱180,000.00

Less: Book Calue of Interest Acquired P 18,750

Gain of Gabi and Travilla P 6,250

Total Agreed capital P 95,000

Multiplied by: Gabi Nah 20%

Agreed Capital to be credited to Gabi Nah P 19,000

26. {(P120,000 + P90,000 + P70,000 + P200,000)/.79} (.21)

Less: Contribution/Investment of Ibarra P 56,400

Capital Contribution (P198,983 + P47,890) P 246,873

Reduction of inventory P 21,273

Less: Book value (P198,983 + P47,890) x 1/5 P 49,374.6

Divide by/capitalized at 1/5

Amount of land to be increased P 54,277

Less: Book value of the interest acquired

Gain of Maribel and Luisa P 375,910

31. 62.000 + [10,000 - (25,000-18,000)] (0.20)

Capital Balances P 48,000.00 P 216,000.00 P 70, 328.00

Loss on Realization P 58,000.80 P 43,500.60 P 43,500.60

Cash Received P 172,499.40 P 26,827.40

Capital Balances P 60,000 P 40,000 P 40,000

Gain on Realization P 48,000 P 36,000 P 36,000

Cash Received P 108,000 P 76,000 P 76,000

Capital Balances P 40,000 P 25,000 P 5,000 P 70,000

Loss on Realization ( 21,000) (14,000) (7,000) (42,000)

Balances P 19,000 P 11,000 ( P 2,000) P 28,000

Loss on Possible (P 1,200) (P 800) P 2,000 0

Cash Received P 17,800 P10,200 0 P28,000

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