1. Cina, Doy and Eli shared profit and losses based on [Link].
2. Eli was allowed to withdraw from the partnership on 31
December 2013 with P600,000 cash as full settlement. The condensed statement of financial position of the
partnership as of that date was as follows:
Assets
Due from Eli P250,000
Goodwill 2,000,000
Other assets 4,750,000
Total assets P7,000,000
Liabilities and Capital
Liabilities P2,000,000
Due to Doy 750,000
Cina, capital 1,750,000
Doy, capital 1,500,000
Eli, capital 1,000,000
Total liabilities and capital P7,000,000
Using the goodwill method, the new capital balances of the remaining partners after Eli's withdrawal are:
a. Cina, PI,843,750 and Doy, PI,556,250.
b. Cina, Pl,375,000 and doy, Pl,275,000.
c. Cina, P2,000,000 and doy, PI,650,000.
d. Cina, PI, 750,000 and Doy, PI,500,000.
2. On June 30,2013 the balance sheet for the partnership of Cruz, Merced and Prieto, together with their respective profit
and loss ratio, were as follows:
Assets, at cost P180,000
Cruz, loan 9,000
Cruz, capital (20%) 42,000
Merced, capital (20%) 39,000
Prieto, capital (60%) 90,000
P180,000
Cruz had decided to retire from the partnership. By mutual agreement, the assets are to be adjusted to their fair
value of P216,000 at June 30, 2013. It was agreed that the partnership would pay Cruz P61,200 cash for Cruz's
partnership interest, including Cruz's loan which is to be repaid in full. No goodwill is to be recorded. After Cruz's
retirement, what is the balance of Merced capital account?
a. P36,450 c. P45,450
b. P39,000 d. P46,200 Guerrero 2013
