1. The accounts of the partnership of Erwin, Ralph and Mon at the end of its fiscal year on September 30, 2013 are as follows:

Cash P 12,000 Loan from Mon P 10,000

Other assets 124,000 Erwin, capital (30%) 45,000

Loan to Ralph 5,000 Ralph, capital (50%) 30,000

Loan to Erwin 9,000 Mon, capital (20%) 15,000

Liabilities 50,000

If Mon received P9,000 on the first distribution of cash, the realized from the initial sale of asset was?

A. 95,000

B. 10,000

C. 150,000

D. 65,000

E. 60,000

2. On May 1, 2020, the capital accounts of S, T and C are P1,260,000; P787,500 and P472,500 , respectively. At this time, I is admitted to the firm, he purchased a 1/6 interest in the firm for P288,750. The old partners equalized their capital investments. Afterwards, all the partners agree to divide profits and losses equally. The new partnership closes its books June 30, 2020 reporting profit of P44,100 for two months.Each partner made the following withdrawals: S and C P2,625 per month while T and I, P3,500 per month. On June 30, 2020, I invest enough cash to increase his capital to a 1/3 interest in the partnership.

How much cash is to be invested by I? a. 211,165.50 b. 70,000 c. 632,642.50 d. 633,762.50