10. Carlos and her very close associate Liggayu formed a partnership on Jan. 1, 2018 with Carlos contributing 16,000 cash while Liggax, contributing equipment with a book value of 6,400 and a fair value of 4,800 and inventory items with a book value of P 2,400 and a fair value of P 3,200. During 2018, Liggay made additional investments of P 1,600 on April 1 and P 1,600 on June 1, and on Sept. 1, he withdrew P 4,000. Carlos had no additional investments or withdrawals during the year. The average capital balance at the end of 2018 for Lingaxy is a. P 7,200 b. P 8,000 c. P 8,800 d. P 9,600 11. Langbax, Villota and Hernandez are partners in an accounting firm. Their ending capital account balances were: Langbax, P 90,000: Villota. P 110,000 and Hernandez, P 50,000. They share profits and losses in a 4:4:2 ratio, after the following special terms: Partner Hernandez is to receive a bonus of 10% of the profit after bonus Interest of 10% shall be paid on that portion of the partner's capital in excess of P 100,000 Salaries of P 10,000 and P 12,000 shall be paid to partners Langbay, and Hernandez, respectively. Assuming profits of P 44,000 in 2018, the total profit share of Hernandez would be a. P 7,800 b. P 19,800 c. P 16,800 d. P 19,400 12. Un, Balaba, and Monta are partners with average capital balances during 2018 of P 360,000, P 180,00, and P 120,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P 90,000 to Un and P 60,000 to Monta, the residual profit or loss is divided equally. In 2018, the firm sustained a P 99,000 loss before interest and salaries to partners. By what amount should Un's capital account change? a. P105,000 decrease b. P33,000 decrease c. P21,000 increase d. P126,000 increase 13. The partnership agreement of Santiago and Generales, provided that interest of 10% per annum is to be credited to each partner on the basis of average capital balances. A summary of Generales' capital account for the year ended Dec. 31, 2018 follows: Balance Additional Investments, July 1 Withdrawal, August 1 Balance, Dec. 31 P280,000 80,000 (30,000) P330.000 The amount of interest that should eventually be credited to Generales' capital is a. P30,500 b. P33,000 c. P30,750 d. P34,500