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The Statement of Financial Position of Weny Panganiban and Jessica Salisana showed among others the following capital balances just before Judylaine Berhay is admitted in

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The Statement of Financial Position of Weny Panganiban and Jessica Salisana showed among others the following capital balances just before Judylaine Berhay is admitted in the partnership by buying 1/4 and 1/5 of Panganiban and Salisana's respective share: The partners agreed to make adjustments on the valuation of the following current and non-current assets: a) Allowance for doubtful accounts should be increased from P10,000 to P15,000. b) Merchandise should be revalued from P100,000 down to P85,000. c) Equipment's net book value of P115,000 should be revalued at P130,000 based on the fair market value. Q-5 At what amount Berhay has to pay the old partners if the purchase is at book value after the adjustment? a) 400,380 c) 14,375 b) 410,937 d) 415,875 Q-6 Who shall receive the cash proceeds from the sale? a) Panganiban only c) Panganiban and Selisana b) Selisana only d) partnership Q-7 The present capital of the old and new partners after the admission- a) P1,750,000 c) P1,950,000 b) P1,835,000 d) P1,980,000

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