1.) When a partnership purchases interest of a retiring partner at more than book value, there must be: a. Bonus to remaining partners

b. Bonus to the retiring partner/positive asset revaluation

c. Bonus to remaining partners/negative asset revaluation

d. Bonus to retiring partners 2.) S1: Loans receivable of the partnership from the partners are deducted from the capital balance of a partner to compute his total interest. S2: In elimination of capital deficiency, if the deficient partner has an excess personal assets over personal liabilities, the deficient partner directly invests additional cash to eliminate his capital deficiency a. Both statements are false

b. Both statements are true

c. S1 is true; S2 is false

d. S1 is false; S2 is true

3.) On June 30, 2020, the statement of financial position for the partnership of A, B and C, together with their respective profit and loss ratios, were as follows:

Assets, at cost - P200,000

A, Loan - 10,000

A, Capital (20%)- 35,000

B, Capital (30%)- 75,000

C, Capital (50%)- 80,000

A decided to retire from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of P220,000 at June 30, 2020. It was agreed that the partnership would pay C P60,000 cash for C's partnership interest, including A's loan which is to be repaid in full. No goodwill/asset revaluation is to be recorded. After A's retirement, what is the balance of B'S capital account?

4.) As of December 31, 2020, the books of ABC partnership showed capital balances of: A, P60,000; B, P30,000 and C, P5,000. The partnership's profit or loss ratio was 5:3:2, respectively. The partners decided to liquidate and they sold all non-cash assets for P40,000. After the settlement of all liabilities amounting to P10,000, they still have cash of P20,000 left for distribution. Assuming that any capital debit balance is uncollectible, the share of A in the distribution of P20,000 cash would be: