J. Olson, L. Quizon and N. Dizon are partners with capital balances of P224,000, P260,000 and P116,000 respectively, sharing profits and losses in the ratio of 3:2:1. D. Sison is admitted as a new partner bringing with him expertise and reputation. He is to invest cash for a 25% interest in the assets of the partnership which includes a credit of P70,000 for goodwill that is recognized upon his admission. 1. How much cash should Sison contribute? a. P130,000 c. P200,000 b. P185,000 d. P150,000

Presented below is the balance sheet of the partnership of Rivera, Sanchez and Torres, who share income and loss in the ratio of 6:3:1 respectively. Cash P170,000 Other assets 830,000 Total assets P1,000,000 Liabilities P160,000 R. Rivera, capital 504,000 S. Sanchez, capital 252,000 T. Torres, capital 84,000 Total liabilities and capital P1,000,000 2. Assume that the partners agree to sell R. Vidal 20% of their respective interests in the partnership for a total payment of P180,000. The payment by Vidal is to be made directly to the individual partners. The partners agree that goodwill is to be recorded prior to the admission of Vidal. What are the capital balances of Rivera, Sanchez, and Torres, respectively, immediately after the admission of Vidal? a. P396,000; P198,000; P66,000 b. P403,200; P201,600; P67,200 c. P432,000; P216,000; P72,000 d. P511,200; P255,600; P85,200 3. Assuming the assets and liabilities of the partnership are fairly valued and the partnership wishes to admit Vidal with a 25%interest without recording goodwill or bonus. How much should Vidal invest in the partnership? a. P140,000 c. P250,000 b. P210,000 d. P280,000

M. Julian, M. Keno, and M. Lanuza are partners sharing profits in the ratio of 5:3:2, respectively. As of December 31, 2020, their capital balances were P95,000 for Julian, P80,000 for Keno, P60,000 for Lanuza. On January 1, 2021, the partners admitted V. Manalo as a new partner and according to their agreement, Manalo will contribute P80,000 in cash to the partnership and also pay P10,000 for 15% of Kenos share. Manalo will be given a 20% share in profits, while the original partners share will be proportionately the same as before. After the admission of Manalo, the total capital will be P330,000 and Manlos capital will be P70,000. 4. The total amount of goodwill to the old partners, upon admission of Manalo, would be: a. P 7,000 c. P22,000 b. P15,000 d. P37,000 5. The balance of Kenos capital, after the admission of Manalo, would be: a. P72,600 c. P79,100 b. P74,600 d. P81,000