8

EEE, FFF and GGG are partners with capital balances on January 2, 2020 of P350,000, P525,000
and P700,000, respectively. Their profit ratio and capital interest ratio is 4:4:2. On July 1, 2020,
HHH was admitted by the partnership for 20% interest in capital and in profits by contributing
P200,000 cash, and the old partners agree to bring their capital to their profit interest sharing
ratio. The partnership had net income of P210,000 before admission of HHH and the partners
agree to revalue its overvalued equipment by P35,000.

How much is the capital balance of GGG after admission? *

(2 Points)

736,400.00

Using the same information in Number 8, how much is the amount paid/received by EEE? *
(2 Points)

422,800.00

10

The following balances as of the end of 2020 for IJK Partnership together with the respective
profit and loss ratios of partners, were as follows (see image below).

III decided to retire from the partnership. Parties agreed to adjust the assets to their fair market
value of P432,000 as of December 31, 2020. III will be paid P150,000 by the partnership for his
interest.

How much is the capital balance of JJJ after retirement of III? *

(2 Points)

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