Luffy, Zoro, and Nami were partners with capital balances as of January 1, 2021, of P21,000, P32,000 and P43,000 respectively, sharing profit and losses on a 5:2:1 ratio.

On July 1, 2021 Luffy withdrew from the partnership. Partners agreed that at the time of withdrawal, certain inventories had to be revalued at P14,400 from its cost of P10,100. For the six-month period ending June 30, 2021, the partnership generated a net income of P28,900. Further, partners agreed to pay Luffy, P53,900 for his interest and that the remaining partners' capital accounts, would be adjusted for whatever goodwill the settlement would generate. The payment of Luffy included a goodwill of: