Choose A if the first statement is the only correct answer, B if the second statement is the only correct answer, C if both statements are correct and D if both statements are incorrect.

9.1st - Partners A, B and C agreed to divide the profits in the ratio 2:3:4. When presented as a percentage, this is equivalent to 20%, 30% and 40%. 2nd - The distribution of partnership profits of A, B and C includes providing annual salary P250,000 to A. The entry is a debit to salary expense and credit A, Capital for P250,000. (2 Points) A B C D 10.1st - Partners C, B and A agreed to provide annual salary P250,000 to A and the remaining profit is divided in the ratio 3:2:1. If A received P300,000 total share in the partnership profit, the total partnership profit is P500,000. 2nd - Partnership C, B and A agreed to provide annual salary P250,000 to A and the remaining profit is divided in the ratio 3:2:1. If A received a total share P200,000 during the year, Partner B's capital was reduced by P100,000. (2 Points) A B C D 11.1st - D is admitted as a new partner from existing CBA partnership by investing P500,000 for 10% interest in the new partnership. If D's capital credit is P500,000, the new total partnership equity is P5,000,000. 2nd. - D is admitted as a new partner from existing CBA partnership by purchasing 10% interest of C, B and A for P500,000. If D's capital in the new partnership is P500,000, the old partnership equity is P4,500,000. (2 Points) A B C D 12.1st - D is admitted as a new partner from existing CBA partnership by investing P500,000 for one-fourth interest in the new partnership. If the new partnership equity is P1,000,000, there is bonus from new partner to old partners. 2nd - D is admitted as a new partner from existing CBA partnership by purchasing 100% of B's P300,000 interest for P500,000. The new partnership equity of CBAD will remain the same. (2 Points) A B C D 13.1st - At the beginning of 2021, Partners C, B and A have capital balances P100,000; P200,000 and P300,000, respectively. On July 1, 2021, they agreed C to buy 50% of A's interest for P200,000. As a result, B's average capital during 2021 is higher than C. 2nd - At the beginning of 2021, Partners C, B and A have capital balances P100,000; P200,000 and P300,000, respectively. On July 1, 2021, they agreed C to buy 50% of A's interest for P200,000. As a result, in 2021, A will received the least share in the partnership profits. (2 Points) A B C D 14.1st - At the beginning of 2021, partners C, B and A have capital balances P100,000; P200,000 and P300,000, respectively. On July 1, 2021, partners agreed C to buy 50% of A for P200,000. As a result, B will receive the biggest share of partnership profit because B has the largest ending capital balance. 2nd - At the beginning of 2021, partners C, B and A have capital balances P100,000; P200,000 and P300,000, respectively. On July 1, 2021, partners agreed C to buy 50% of A for P200,000. B will receive one-third of the partnership profits during 2021. (2 Points) A B C D 15.1st - A is a general partner of CBA limited partnership. The capital investments of B, a limited partner, can be used to settle partnership liability. 2nd - A is a general partner of CBA general partnership. The personal assets of B, a limited partner, cannot be used to settle remaining partnership liability. (2 Points) A B C D 16.1st - A is a general partner of CBA limited partnership. The personal assets of B, a limited partner, cannot be used to settle the remaining partnership liability. 2nd - A is a general partner of CBA general partnership. The partnership assets will be used in the following order: those owing to outside creditors, those owing to inside creditors, to owing to partners with respect to capital contributions, and lastly to partners with respect to share of profits. (2 Points) A B C D 17.1st - When realization of non-cash assets resulted to a profit, the insolvent partner who is not deficit, will not receive any amount of capital from final settlement to partners. 2nd - Before liquidation of CBA partnership, the capital balances are P300,000, 200,000 and P100,000, respectively, and share profits and losses in the ratio 5:4:1. A, an insolvent partner, will receive last among the partners. (2 Points) A B C D 18.1st - Before liquidation of CBA partnership, the capital balances are P300,000, 200,000 and P100,000, respectively, and share profits and losses in the ratio 5:4:1. As final settlement, both C and A will receive P50,000 each. 2nd - Before liquidation of CBA partnership, the capital balances are P300,000, 200,000 and P100,000, respectively, and share profits and losses in the ratio 5:4:1. As final settlement, if C received P60,000, B will receive P8,000.Immersive Reader (2 Points) A B C D