DISSOLUTION

The capital accounts of the partners after the adjustment will be:

• Cordova: P614,476

  Constancio: P683,052

• Cordova: P615,942

  Constancio: P717,894

• Cordova: P640,876

  Constancio: P712,345

• Cordova: P613,576

  Constancio: P683,350

How much assets does the partnership have?

• P2,237,918

• P2,265,118

• P2,337,918

• P2,365,218

Assuming Cruz offered to join for a 20% interest in the firm, how much cash should he contribute?

• P324,382

• P330,870

• P337,487

• P344,237

Assuming after Cruz admission, the profit and loss sharing ratio was agreed to be 40:40:20 based on capital credits, how much should the cash settlement be between Cordova and Constancio?

• P32,272

• P32,930

• P33,602

• P34,288

Conrado, Cosio and Cosme are partners whose capital balances and share profits: Conrado P250,000 (50%); Cosio P150,000 (25%); Cosme P100,000 (25%).

Cueto is admitted into the partnership by paying P60,000 for 1/3 of the share in equity of Cosio and by contributing P200,000. The partners agree to the total capitalization to P750,000, 1/3 of which is Cueto's capital credit. Cueto's share in net income is also 1/3 and the old partners are to divide net income in the old ratio among themselves.

The profit and loss sharing ratio among Conrado, Cosio and Cosme after the admission of Cueto is:

admission of Cueto is

• 50%; 25%; 25% respectively

• 30%; 15%; 15% respectively

• 2/6; 1/6; 1/6 respectively

• 1/3; 1/3; 1/3 respectively

If the capital credit of the new partner is less than his capital contribution, then the admission resulted in a:

• Bonus to old partners

• Bonus to new partner

• No bonus

• Bonus to old and new partners

LL Partnership had a net income of P24,000 for the month ended September 30, 2020. Lore purchased an interest in the LL Partnership of Lito and Lily by paying Lito P72,000 for half of his capital and half of his 50% profit sharing interest. At this time, the capital balance of Lito and Lily was P96,000 and P168,000 respectively. Lore should receive a credit to his capital account of

• P36,000

• P48,000

• P72,000

• P84,000

Statement 1: In the admission of a new partner by purchase, the new partner may pay more than, less than or equal to the book value of the interest sold by any or all of the old partners.

Statement 2: The sale of partner’s interest in an existing partnership is a personal transaction between the selling partner/s and the buying or new partner

• True; True

• True; False

• False; True

• False; False

Pros and Cons form a partnership and have capital balances of P100,000 and P200,000 respectively. If they agree to admit Neutral into the partnership, how much will he invest to have a one-third interest?

• P100,000

• P120,000

• P150,000

• P200,000

The accounting treatment for the sale of interest of a retiring partner to an outsider or to the remaining partner is the same as:

• Admission of a partner by purchase

• Admission of a partner by investment

• Sale of interest to the partnership

• Admission by purchase or admission by investment