In the Quirino-Aquino Partnership, L. Quirino and M. Aquino had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. The bonus method was used to record N. Macapagals admittance as a new partner. 1. What ratio should be used to allocate, to Quirino and Aquino, the excess of Macapagals contribution over the amount credited to macapagals capital account? a. Quirino and Aquinos new relative capital ratio. b. Quirino and Aquinos new relative profit and loss ratio. c. Quirino and Aquinos old capital ratio. d. Quirno and Aquinos old profit and loss ratio. R. Palma, S. Antonio, and T. David are partners with capital balances of P100,000, P60,000, P40,000, respectively. The partners share income and loss equally. For an investment of P100,000 cash, V. Baluyot is to be admitted as a partner with a one fourth interest in capital and income. 2. Which of the following can best justify the amount of Baluyots investment? a. Baluyot will receive a bonus from the other partners upon his admission to the partnership. b. Assets of the partnership were overvalued immediately prior to Baluyots investment. c. The book value of the partnerships net assets was less than their fair value immediately prior to Baluyots investment . d. Baluyot is apparently bringing goodwill into the partnership, and his capital account will be credited for the appropriate amount. The partnership of Y. Linsao and S. Mison provides for equal sharing of profits and losses. Prior to the admission of a third partner (C. Zamora), the capital accounts are Linsao, P75,000 and Mison, P105,000. Zamora invests P90,000 for a P75,000 interest and partners agreed that the net assets of the new partnership would be P270,000. 3. How much is Misons capital in the new partnership? a. P112,500 c. P110,000 b. P105,000 d. P120,000 R. Volante and F. Asuncion are partners having capital balances of P150,000 and P180,000, respectively, and sharing profits and losses equally. They admit J. De Leos to a one-third interest in partnership capital and profits for an investment of P195,000. 4. If the goodwill procedure is used in recording the admission of J. De Leos to the partnership a. J. De Leos capital will be P175,000 b. Total capital will be P525,000 c. F. Asuncion capital will be P210,000 d. Goodwill will be recorded at P45,000