Questions 4 and 5 are based on the following For several years, Peejay and Joshua have been operating their own retail pharmacies as sole proprietorships They decided that several advantages could be gained if they combined their businesses into one operation They leased a new facility and began operations as a partnership on January 2, 2020 Peejay was able to find a buyer for his priorbusiness and sold it as a going concern Joshua did not have an opportunity to sell his business so he transferred as many asserts as possible to the new partnership The following assets were contributed by Peejay and Joshua to start their new business Peejay Joshua Book Value Fair Value Cash 375,000 82,000 82,000 Accounts Receivable 48,000 40,000 Inventory 225,000 220,000 Furnishings 24,000 8,000 Acc Dep Furnishing (12,000) Office Equipment 38,500 20,000 Acc Dep Office Equipment (20,000) Computer System 23,200 5,000 Acc Dep Computer System (17,200) Total 375,000 396,500 375,000 Accounts Payable (assumed by Partnership) 25,000 25,000 How much is the opening capital of Joshua A P396,500 B P375,000 C P350,000 D P366,500 If the partners decided that the agreed capitalization ratio is 4 5 5 5, who will give the bonus and how much A 48,750 Bonus from Peejay B 48,750 Bonus to Peejay C 37,500 Bonus to Joshua D 27,825 Bonus from Peejay Lily contributed P24,000 and Robin contributed P48,000 to form a partnership, and they agreed to share profits in the ratio of their original capital contributions During the first year of operations, they made a profit of P16,290 Lily withdrew P5,050 and Robin P8,000 At the start of the following year, they agreed to admit Tracey into the partnership She was to receive one fourth interest in the capital and profits upon payments of P30,000 to Lily and Robin, whose capital accounts were to be reduced by transfers to Traceys capital account of amounts sufficient to bring them bank to their original capital ratio How should the P30,000 paid by Tracey be divided between Lily and Robin Lily Robin A 9,835 20,175 B 10,000 20,000 C 9,300 20,700 D 15,000 15,000 D, E and F share partnership profits in the ratio of 2 3 5 On September 30, F opted to retire from the partnership The capital balances on this date follow D, Capital P25,000 E, Capital P40,000 F, Capital P35,000 How much is to be debited from D, assuming F is paid P39,000 in full settlement of his partnership interest A P23,400 B P800 C P2,400 D P1,600

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Questions 4 and 5 are based on the following: For several years, Peejay and Joshua have been operating their own retail pharmacies as sole proprietorships.

Questions 4 and 5 are based on the following:

For several years, Peejay and Joshua have been operating their own retail pharmacies as sole proprietorships. They decided that several advantages could be gained if they combined their businesses into one operation. They leased a new facility and began operations as a partnership on January 2, 2020. Peejay was able to find a buyer for his priorbusiness and sold it as a going concern. Joshua did not have an opportunity to sell his business so he transferred as many asserts as possible to the new partnership.

The following assets were contributed by Peejay and Joshua to start their new business:

	Peejay	Joshua
	Book Value		Fair Value
Cash	375,000	82,000	82,000
Accounts Receivable		48,000	40,000
Inventory		225,000	220,000
Furnishings		24,000	8,000
Acc Dep Furnishing		(12,000)
Office Equipment		38,500	20,000
Acc Dep Office Equipment		(20,000)
Computer System		23,200	5,000
Acc Dep Computer System		(17,200)
Total	375,000	396,500	375,000
Accounts Payable (assumed by Partnership)		25,000	25,000

How much is the opening capital of Joshua?

A. P396,500

B. P375,000

C. P350,000

D. P366,500

If the partners decided that the agreed capitalization ratio is 4.5:5.5, who will give the bonus and how much?

A.	48,750 Bonus from Peejay
B.	48,750 Bonus to Peejay
C.	37,500 Bonus to Joshua
D.	27,825 Bonus from Peejay

Lily contributed P24,000 and Robin contributed P48,000 to form a partnership, and they agreed to share profits in the ratio of their original capital contributions. During the first year of operations, they made a profit of P16,290; Lily withdrew P5,050 and Robin P8,000. At the start of the following year, they agreed to admit Tracey into the partnership. She was to receive one-fourth interest in the capital and profits upon payments of P30,000 to Lily and Robin, whose capital accounts were to be reduced by transfers to Traceys capital account of amounts sufficient to bring them bank to their original capital ratio.

How should the P30,000 paid by Tracey be divided between Lily and Robin?

Lily	Robin
A. 9,835	20,175
B. 10,000	20,000
C. 9,300	20,700
D. 15,000	15,000

D, E and F share partnership profits in the ratio of 2:3:5. On September 30, F opted to retire from the partnership. The capital balances on this date follow:

D, Capital - P25,000 E, Capital - P40,000 F, Capital - P35,000

How much is to be debited from D, assuming F is paid P39,000 in full settlement of his partnership interest?

A. P23,400

B. P800

C. P2,400

D. P1,600