Help please

II.

The capital accounts of the partnership of Newton, Sharman, and Jackson on June 1, 20x4, are presented, along with their respective profit and loss ratios:

Newton........................................................................ P139,200 1/2

Sharman....................................................................... 208,800 1/3

Jackson......................................................................... 96,000 1/6

P 444,000

On June 1, 20x4, Sidney was admitted to the partnership when he purchased, for P132,000, a proportionate interest from Newton and Sharman in the net assets and profits of the partnership. As a result of this transaction, Sidney acquired a one-fifth interest in the net assets and profits of the firm. Assuming that implied goodwill is not to be recorded, what is the combined gain realized by Newton and Sharman upon the sale of a portion of their interests in the partnership to Sidney?

a.

P -0-

c.

P62,400

b.

P43,200

d.

P82,000

III.

LL and QQ are partners with capital balances of P25,000 and P35,000, respectively, and they share profits and losses equally. The partners agree to take DD into the partnership for a 40% interest in capital and profits, while LL and QQ each retain a 30% interest. DD pays P30,000 cash directly to LL and QQ for his 40% interest, and total revaluation of asset (or goodwill implied) by DD's payment is recognized on the partnership books. If LL and QQ transfer equal amounts of capital to DD, the capital balances after DD's admittance will be:

a. LL, P17,500; QQ, P27,500; DD, P30,000 c. LL, P18,000; QQ, P18,000; DD, P24,000

b. LL, P22,500; QQ, P22,500; DD, P30,000 d. LL, P13,000; QQ, P23,000; DD, P24,000

IV.

On January 31, 20x4, partners of Lon, Mac & Nan Partnership, had the following loan and capital account balances (after closing entries for January):

Loan receivable from Lon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

P 20,000 Dr

Loan payable to Nan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

60,000 Cr

Lon, capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

30,000 Dr

Mac, capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

120,000 Cr

Nan, capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

70,000 Cr

The partnership's income sharing ratio was Lon, 50%; Mac, 20%, and Nan, 30%.On January 31, 20x4, Ole was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of P40,000 cash. Prior to Ole's admission, the existing partners agreed to increase the carrying amount of the partnership's inventories to current fair value, a P60,000 increase. The capital account to be credited to Ole:

a.

P60,000

c.

P52,000

b.

P40,000

d.

P46,000

V.

In the AD partnership, Allen's capital is P70,000 and Daniel's is P20,000 and they share income in a 3:1 ratio respectively. They decide to admit David to the partnership. Each of the following questions is independent of the others.

1. David directly purchases a one-fifth interest by paying Allen P17,000 and Daniel P5,000. The land account is increased before David is admitted. By what amount is the land account increased?

a. P20,000 c. P10,000 b. P18,000 d. P 5,000

2. Allen and Daniel agree that some of the inventory is obsolete. The inventory account is decreased before David is admitted. David invests P20,000 for a one-fifth interest. What is the amount of inventory written down?

a. P2,000 c. P7,500 b. P5,000 d. P10,000