PARTNERSHIP DISSOLUTION - RETIREMENT Problem A. Hazel, Nina and Rhea share profits in the ratio of 2:3:5. On January 20, Rhea opted to retire from the partnership. The capital balances on this date follow: Hazel P43,750 Nina P70,000 Rhea P61,250 How much will be the capital of Nina, assuming Rhea sold his interest to Nina for P17,500? A. P87,500 B. P43,750 C. P131,250 D. P70,000 How much is to be debited from Hazel, assuming Rhea is paid P68,250 in full settlement of his interest? A. P4,200 B. P5,250 C. P7,000 D. P2,800 Problem B. On December 30, 2018, the statement of financial position of Magnolia Co. has the following balances: Total assets P1, 125,000; Bianca loan P62,500; Bianca capital P259,375; Mela capital P240,625 and Lia capital P562,500. The partners share profits and losses in the ratio of 25% to Bianca, 25% to Mela, and 50% to Lia. It was agreed among the partners that Bianca retires from the partnership and the partnership assets be adjusted to their fair value of P1,275,000 as of December 31, 2018. The partnership also suffered net loss of P375,000. The partnership would pay Bianca P271,250 cash for her total interest in the partnership. What is the total capital of Mela after retirement of Bianca assuming the use of bonus method? A. P182,500 B. 191,875 C. P184,375 D. P190,000 Problem C. The statement of financial position as of September 30, 2018, for the partnership of Danielle, Elise and Francesca shows the following information: Assets P126,000 Danielle, loan P7,000 Danielle, capital 29,050 Elise, capital 26,950 Francesca, capital 63,000 Total P126,000 Total P 126,000 It was agreed among the partners that Danielle retires from the partnership, and it was also further agreed that the assets should be adjusted to their fair value of P120,750 as of September 30, 2018. Net loss prior to the retirement of Danielle amount to P24,500. The partnership is to pay Danielle P21,700 cash for his partnership interest Danielle, Elise and Francesca share profit 40%, 15% and 45% respectively. After the retirement of Danielle, how much is the capital balance of Francesca? A. P23,100 B. P47,775 C. P51,450 D. P64,838