SAINT COLUMBAN COLLEGE

COLLEGE OF BUSINESS EDUCATION

REFRESHER COURSE
2nd Semester, S.Y. 2021-2022

ADVANCED FINANCIAL ACCOUNTING & REPORTING (AFAR) Alyendy Mar M. Adlaon, CPA
ACCOUNTING FOR PARTNERSHIP Handout 22-02

DISSOLUTION OF A PARTNERSHIP

A partnership may be dissolved either by admission of a new partner or by retirement or death of a

partner.

ADMISSION OF A NEW PARTNER BY INVESTMENT

A partner may be admitted into a partnership by making investment directly to the partnership.
Admission by a partner by investment maybe accounted using the bonus method or revaluation of assets
method.
(a) The Bonus Method. When the bonus method is used, the total contributed capital is equal to the
capital of the firm. Bonus means a transfer of equity from new partner to old partner or from old partner to the
new partner.
For example, if an incoming partner is admitted by investing P50,000 for a 25% interest in a firm with
partnership net assets of P120,000, then, the total capital of the firm will equal to P170,000. The amount
credited to the new partner will be 25% of P170,000 which is P42,500. The excess of his contribution over the
amount credited to him is considered bonus to the old partners.
Agreed Capital (AC) = Total Contributed Capital (TCC)
Total Contributed Capital = Capital of old partners + capital of new partner

(b) Asset Revaluation Method. Under this method, the assets of the partnership are revalued before
the admission of new partner. The sum of the adjusted capital of the old partners plus the amount invested by
the new partner is equal to the total contributed capital.
For example, a new partner invested P40,000 for a 20% interest in a new partnership’s capital. The old
partners’ capital amounted to P220,000. If the amount invested by the new partner is the basis in determining
the total capital of the firm, the total agreed capital must be P200,000 (P40,000/20%). Of the P200,000,
P40,000 is traceable to the new partner while the P160,000 is traceable to the old partners. It appears that the
assets of the old partnership are overvalued.

ILLUSTRATION:
Dayag and Guererro who share profits and losses equally, admit Punzalan into the partnership upon
investing for a 1/3 interest on the firm. The bonus method is used to account for his admission. Just before the
admission, the following account balances are available from the books of Dayag and Guererro:
Debits Credits
Cash P 240,000
Accounts Receivable 360,000
Notes Receivable 40,000
Merchandise Inventory 480,000
Prepaid Expenses 20,000
Accounts Payable P340,000
Dayag, Capital 420,000
Guererro, Capital 380,000
Total P1,140,000 P1,140,000

Prior to the admission of Punzalan, the parties agreed that the following adjustments shall be made:
1. Allowance for doubtful accounts amounting to P20,000 is to be established while accounts amounting to
P10,000 is to be written off.
2. 5% of the merchandise inventory is obsolete with no market value while the rest is to be revalued to
their net realizable value of P400,000.
3. Prepaid rent of P12,000 is to be recognized.
4. Accrued expenses of P5,000 is to be recorded.

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Required: Determine the capital balances of Dayag, Guererro, and Punzalan immediately after the admission.
ADMISSION OF A NEW PARTNER BY PURCHASE OF INTEREST
A partner may sell his interest to a new partner. The purchase of interest from one or more partners is
a personal transaction between the seller and the purchaser. Thus, the amount paid by the purchaser is not
reflected in the books of the partnership and no gain or loss is recognized in the books.
The only entry to record the purchase of interest is to debit the capital account of the seller and credit
the capital account of the buyer. In admission by purchase, the total assets and capital of the partnership is not
changed.

RETIREMENT, WITHDRAWAL OR DEATH OF A PARTNER

When a partner retires or withdraws from a partnership, the 1 st step is to revalue the partnership assets
and liabilities to their current values. Any increase or decrease in the value of the assets and liabilities is
credited or charged to the partners in accordance with their P/L ratio.
The 2nd step is the determination of the partner’s total interest. The interest of the retiring partner may
be sold to a new partner, to the existing partners or to the partnership at an amount equal to the partner’s
interest at less than his interest or more than his interest.
The difference between the book value of interest sold and the amount received as consideration may
be treated as:
a) Bonus to the remaining partners or as revaluation of assets if the amount of consideration is less
than the interest sold.
b) Bonus to the retiring partner or as revaluation of assets if the amount of consideration is more than
the interest sold.

PART I: THEORY OF ACCOUNTS

1. Which of the following statements pertain to partnership dissolution?

a. It refers to the process of converting the non-cash assets of the partnership and distributing the total
cash to the creditors and the remainder to the partners
b. It refers to the change in the relation of the partners caused by any partner ceasing to be
associated in carrying on of the partnership.
c. It refers to the extinguishment of the juridical personality of the partnership.
d. It refers to the end of the life of the partnership.
2. Which of the following will not result to the dissolution of a partnership?
a. Insolvency of the partnership
b. Admission of a new partner in an existing partnership
c. Assignment of an existing partner’s interest to a third person
d. Retirement of a partner
3. Which of the following statements is correct when a new partner is admitted to an existing partnership by
purchasing a portion of a capital interest of an existing partner?
a. It will result to revaluation or impairment of existing assets of the partnership.
b. The partnership will recognize gain or loss in the transfer of capital from one partner to another partner
c. The partnership is not dissolved by the admission of a new partner by purchase.
d. It will just result to credit to capital of newly admitted partner with corresponding debit to
capital of the selling partner.
4. In case of admission of a new partner in an existing partnership through investment to the partnership,
which of the following scenario will result to bonus to new partner and asset revaluation?
a. The total contributed capital of all partners is equal to the total agreed capital of new partnership while
the agreed capital of new partner is higher than the amount he has contributed.
b. The total contributed capital of all partners is more than the total agreed capital of new partnership
while the agreed capital of new partner is lower than the amount he has contributed.
c. The total contributed capital of all partners is less than the total agreed capital of new
partnership while the agreed capital of new partner is higher than the amount he has
contributed.
d. The total contributed capital of all partners is more than the total agreed capital of new partnership
while the total agreed capital of old partners is equal to the amount they contributed.
5. If a partner who retired from the partnership receives less than the capital balance before retirement which
also resulted to decrease in the capital balance of remaining partners, which is correct?
a. The retiring partner receives bonus from remaining partner.
b. An impairment loss is recognized before the retirement.
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 c. Revaluation surplus is recognized before the retirement.
d. The retiring partner gives bonus to the remaining partner.
PART II: PROBLEM SOLVING

For Items 1-2

MYRNA and NORMA are partners sharing profits and losses in the ratio of 60% and 40%, respectively.
The partnership balance sheet at August 30, 2017 follows.
Cash ₱ 27,000 Accounts Payable ₱ 30,000
Other Assets 266,000 MYRNA Loan 13,000
NORMA Loan 20,000 MYRNA Capital 180,000
NORMA Capital 90,000
Total ₱313,000 Total ₱ 313,000
At this date, OLGA was admitted as a partner for a consideration of P 97,500 cash for a 40% interest in
capital and in profits.

1. Assume OLGA is admitted by purchase of 40% each of the original partners’ interest, determine how the
P97,500 will be apportioned to MYRNA and NORMA:
a. MYRNA, 65,700 and NORMA, 31,800
b. MYRNA, 64,800 and NORMA, 32,700
c. MYRNA, 65,500 and NORMA, 32,000
d. MYRNA, 65,900 and NORMA, 31,600

2. Assume OLGA is admitted by investing the P97,500 into the partnership, determine the effects of any bonus
over the capital balances of the original partners:
a. MYRNA, P (19,800) and NORMA, P (29,700)
b. MYRNA, P 18,000 and NORMA P 29,700
c. MYRNA, P (29,700) and NORMA P (19,800)
d. MYRNA, P (18,675) and NORMA P (12,450)

3. The equity accounts of the partnership of KARDO and LERMA at March 31, 2017 are as follows:
KARDO, Capital ₱512,000
LERMA, Capital 256,000
KARDO, Loan (Credit) 48,000
LERMA, Loan (Debit) 24,000
The partners share profits and losses in the ratio of 3:2, respectively. The partnership is in desperate need
of cash, and the partners agree to admit JACK as a partner with a 1/3 interest in the capital and profits and
losses upon his investment of ₱192,000. Immediately after JACK’s admission, what should be the capital
balances of KARDO, LERMA, and JACK, respectively:
a. ₱598,000; ₱222,000; ₱410,000
b. ₱480,000; ₱480,000; ₱480,000
c. ₱544,000; ₱256,000; ₱400,000
d. ₱435,200; ₱204,800; ₱320,000

For Items 4-6

Partner’s P and Q has capital balances of ₱358,500 and ₱300,000 respectively before admitting R. P and Q
share profits and losses in the ratio of 6:4. R paid ₱225,000 to partners in exchange for 30% interest in the
partnership as well as the profits and losses.

4. How much is the capital of partner P after admission of R?

a. ₱250,950
b. ₱250,590
c. ₱279,480
d. ₱269,580

5. How much is debited from the capital of Partner Q upon R’s admission?
a. ₱120,000
b. ₱90,000
c. ₱79,020
d. ₱105,360

6. Assume that an equipment is undervalued, how much is the undervaluation and the capital balance of
partner Q after admission of R respectively?
a. ₱85,000 and ₱336,600
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 b. ₱100,980 and ₱235,620
c. ₱91,500 and ₱336,600
d. ₱91,500 and ₱235,620
For Items 7-9
X and Y has capital balances of ₱150,000 and ₱180,000 respectively. Z is to invest ₱60,000 for 15% in
the partnership interest and also in the profits and losses. There is an undistributed net income in the amount
of ₱80,000. Partners X and Y share profits and losses in the ratio 65:35.

7. How much is the capital credit of Z upon his admission?

a. ₱60,000
b. ₱61,500
c. ₱72,000
d. ₱70,500

8. How much is the bonus to partner X from partner Z?

a. ₱10,500
b. ₱6,825
c. ₱0
d. ₱3,675

9. Assume that an equipment is overvalued, how much is the share of Partner Y in the overvaluation of the
equipment?
a. ₱24,500
b. ₱45,500
c. ₱10,500
d. ₱28,000

10. The following are the capital balances of ABC Partnerships at August 1, 2017:
Albert (40% P&L) ₱220,000
Bernard (40% P&L) 160,000
Conrad (20% P&L) 110,000
Dennis invests ₱270,000 in cash for a 30% ownership interest. The payment goes to the original partners.
Revaluation/adjustment in asset is to be recognized upon Dennis’ admission. How much adjustment in asset
should be recorded and what is Dennis’ beginning capital balance?
a. ₱410,000 and ₱270,000
b. ₱140,000 and ₱270,000
c. ₱140,000 and ₱189,000
d. ₱410,000 and ₱189,000

11. The following are the condensed balance sheets of G&N Partnership at August 30, 2017, at which date Ellery
is to be admitted with a 30% interest in capital for an investment of ₱55,000.
Book Value Fair Value
Cash ₱ 20,000 ₱ 20,000
Other Assets 503,000 417,000
Total Assets ₱ 523,000 ₱ 437,000

Current Liabilities ₱ 54,000 ₱ 54,000

Noncurrent Liabilities 269,000 275,000
Gemma, Capital 120,000
Norma, Capital 80,000
Total Equities ₱ 523,000

Gemma and Norma share profits at 60% and 40%, respectively. What will be the respective balances of
Gemma, Norma, and Ellery after the new partner’s admission.
a. ₱68,460; ₱45,640; and ₱48,900
b. ₱48,900; ₱45,640; and ₱68,460
c. ₱45,640; ₱68,460; and ₱48,900
d. ₱64,860; ₱49,240; and ₱48,900

12. The following balances as at October 31, 2017 for the Partnership of Wilma, Xelyn, and Yska were as
follows:
Cash ₱ 80,000 Liabilities ₱ 24,000

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 Xelyn, Loan 24,000 Wilma, Loan 36,000
Non-cash Assets 640,000 Wilma, Capital 168,000
Xelyn, Capital 156,000
Yska, Capital 360,000
Totals ₱ 744,000 Totals ₱ 744,000
Wilma has decided to retire from the partnership on October 31. Partners agreed to adjust the non-cash
assets to their fair market value of ₱784,000. The estimated profit to October 31 is ₱160,000. Wilma will be paid
₱276,800 for her partnership interest inclusive of her loan which is to be paid in full. Their profit and loss ratio is
3:4:3 to Wilma, Xelyn, and Yska, respectively. What will be the balance of Xelyn’s capital account after the
retirement of Wilma?
a. ₱258,888
b. ₱459,086
c. ₱264,114
d. ₱288,114

13. The partnership of Coco, Piolo, and Daniel and their profit and loss ratios were as follow:
Assets ₱ 1,200,000

Coco, Loan ₱ 60,000

Coco, Capital (30%) 280,000
Piolo, Capital (30%) 260,000
Daniel, Capital (40%) 600,000
Total Equities ₱ 1,200,000

Coco decided to retire from the partnership and by mutual agreement, the assets were adjusted to their
current fair value of ₱1,440,000. The partnership paid ₱408,000 cash to Coco’s equity in the partnership,
exclusive of the loan which was repaid in full. The capital balances of Piolo and Daniel, respectively, after Coco’s
retirement from the partnership was:
a. ₱360,000; ₱855,000
b. ₱288,000; ₱684,000
c. ₱300,000; ₱675,000
d. ₱308,000; ₱664,000

For Items 14-15

Partners E, F, and G have capital balances of ₱120,000, ₱155,000 and ₱115,000 respectively at the
beginning of the year. The partnership generated net loss of ₱140,000 during the year. They share profits and
losses 2:5:1 respectively. Due to disagreement, Partner F wants out of the partnership. Before retirement, the
value of their inventory increased from ₱85,000 to ₱97,000. The partners decided to pay Partner F ₱70,000
cash from partnership upon retirement.

14. How much is the capital balances of Partners E and G after the retirement of Partner F?
a. ₱84,667 & ₱97,333
b. ₱89,000 & ₱99,500
c. ₱91,333 & ₱100,667
d. ₱87,000 & ₱98,500

15. Assume another asset, an equipment, is overvalued, how much is the overvaluation of the equipment and
the capital balances of Partners E and G after retirement of Partner F?
a. ₱5,000; ₱91,333; and ₱100,667
b. ₱5,000; ₱84,667; and ₱97,333
c. ₱8,000; ₱89,000; and ₱99,500
d. ₱8,000; ₱86,000; and ₱98,000

16. The MORICATA Partnership has the following capital balances and P & L ratio at August 4, 2017.
Mora, Capital (30%) ₱129,750
Rico, Capital (30%) 108,750
Cara, Capital (20%) 80,000
Tano, Capital (20%) 71,500

Cara has decided to withdraw from the partnership and by agreement of all partners, will be paid ₱90,000
from partnership cash. Immediately after Cara’s retirement, the capital ratio of Mora, Rico, and Tano,
respectively will be

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 a. 33-1/3%; 33-1/3%; and 33-1/3%
b. 40%; 34%; and 26%
c. 37-1/2%; 37-1/2%; and 25%
d. 42%; 35%; and 23%

For Items 17-18

A, B, and C formed a partnership on January 2, 2016 with contribution of ₱100,000, ₱200,000, and
₱300,000, respectively. The partners agreed on a capital ratio of 1:2:3 upon formation and P&L ratio of 3:3:4,
respectively. The partnership reported a net loss of ₱20,000 for 2016. Also, at the end of 2016, C has decided
to withdraw from the firm and was paid ₱250,000 from partnership cash.
On April 1, 2017, D was admitted as a partner with an investment of ₱160,000. He is given a share in
capital of 40% and in profits of 30%. The old partners have agreed to retain their old ratio over the remaining
profit and loss share. The partnership reported a net profit of ₱21,000, one-third of which is deemed earned as
of the end of the year’s first quarter’s operation.
17. Determine the capital balances of A and B, respectively, as of December 31,2016.
a. ₱94,000 & ₱194,000
b. ₱115,000 & ₱215,000
c. ₱194,000 & ₱115,000
d. ₱165,000 & ₱215,000

18. Determine the capital balances of A, B, and D, respectively on December 31, 2017.
a. ₱98,540; ₱75,720; & ₱113,840
b. ₱93,640; ₱70,820; & ₱109,640
c. ₱100,990; ₱78,170; & ₱120,140
d. ₱104,000; ₱204,000; & ₱203,000

For Items 19-20

Partners JOJO and MAR, who share profits and losses equally, have decided to incorporate the partnership
at December 31, 2017. The partnership net assets after the following adjustments will be contributed in
exchange for shares of stocks from the corporation.
 provision of allowance for doubtful accounts, ₱6,000
 adjustment of understated inventory by ₱10,000
 recognition of additional depreciation of ₱2,000

The corporation’s ordinary share is to have a par value of ₱200 each and the partners are to be issued
corresponding shares equivalent to 80% of their adjusted capital balances. The partnership balance sheet at
December 31, 2017 follows:
Cash ₱ 60,000 Liabilities ₱ 86,000
Accounts Receivable 50,000 Accu. Depreication 4,000
Inventory 70,000 JoJo, Capital 70,000
Equipment 40,000 Mar, Capital 60,000
Totals ₱ 220,000 Totals ₱ 220,000

19. Determine the total credit to APIC upon incorporation of the partnership
a. ₱13,500
b. ₱26,400
c. ₱12,000
d. ₱132,000

20. The number of ordinary shares issued to Partner Mar is

a. 568
b. 600
c. 244
d. 660

21. Venus and Wilma partnership’s balance sheet at December 31, 2016 reported the following balances:
Total Assets ₱100,000
Total Liabilities 20,000
Venus, Capital 40,000
Wilma, Capital 40,000

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 On January 2, 2017, Venus and Wilma dissolved their partnership and transferred all assets and liabilities to
a newly formed corporation. At date of incorporation, the fair value of the net assets was ₱12,000 more than
the carrying amount on the partnership’s books of which ₱7,000 was assigned to tangible assets and ₱5,000
was assigned to goodwill. Venus and Wilma were each issued 5,000 shares of the corporation’s ₱1par common
stock. Immediately following incorporation, additional paid-in capital in excess of par should be credited for
a. ₱68,000
b. ₱70,000
c. ₱77,000
d. ₱82,000
22. On December 31, 2017, the Statement of Financial Position of CAR Partnership shows the following data with
profit or loss sharing of 1:3:6
Cash ₱5,000,000 Total Liabilities ₱10,000,000
Noncash Asset 15,000,000 Carla 5,000,000
Ara 3,000,000
Ren 2,000,000

On January 1, 2018, Ellen is admitted to the new partnership name CARE by purchasing 20% capital
interest of Carla in the amount of ₱1,200,000. Which of the following statements is correct?
a. Ellen will have capital credit of ₱200,000 after the dissolution.
b. The old partnership will recognize gain of ₱200,000 resulting from Ellen’s admission.
c. The new partnership will have total capital of ₱10,200,000.
d. Carla will have ₱4,000,000 capital balance after the admission of Ellen.

23. SG, AP and TS are partners with capital balances of ₱784,000, ₱2,730,000, and ₱1,190,000 respectively,
sharing profits and losses in the ratio of 3:2:1. DJ is admitted as a new partner bringing with him expertise
and is to invest cash for a 25% interest in the partnership which includes a credit of ₱735,000 for bonus
upon his admission. How much cash should Diaz contribute?
a. ₱1,323,000
b. ₱2,100,000
c. ₱1,575,000
d. ₱588,000

24. On December 31, 2020, the Statement of Financial Position of DEL Partnership shows the following data with
profit or loss sharing of 1:3:6:

Cash ₱5,000,000 Total Liabilities ₱10,000,000

Noncash Asset 15,000,000 Diane 5,000,000
Ellen 3,000,000
Liz 2,000,000

On January 1, 2021, Ana will be admitted to the new partnership named ADEL Partnership by investing
₱4,000,000 for 30% capital interest in the new partnership which has total agreed capitalization of ₱20,000,000.
What is the new capital balance of Liz upon admission of Ana in ADEL Partnership?
a. ₱4,400,000
b. ₱8,400,000
c. ₱5,600,000
d. ₱3,200,000

25. On December 31, 2016, the Statement of Financial Position of OVE Partnership shows the following data with
profit or loss sharing of 5:3:2

Cash ₱10,000,000 Total Liabilities ₱20,000,000

Noncash Asset 40,000,000 Diane 10,000,000
Ellen 15,000,000
Liz 5,000,000

On January 1, 2017, Lina is admitted to the new partnership named LOVE by investing ₱20,000,000 for
50% capital interest in the new partnership. What is the new capital balance of Ena after Lina’s admission in
LOVE Partnership.
a. ₱6,000,000
b. ₱5,000,000
c. ₱4,000,000
d. ₱3,000,000

26. On December 31, 2020, the unadjusted Statement of Financial Position of UFC Partnership shows the
following data with profit or loss sharing agreement of 2:3:5:
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 Total Assets ₱100,000,000 Total Liabilities ₱40,000,000
Umber 10,000,000
Fritz 20,000,000
Carol 30,000,000
On December 31, 2020, Umber decided to retire from the partnership. However, before the distribution of
cash to Umber, the following data errors were discovered during the pre-retirement audit:
 During 2020, the property, plant and equipment is not to be subject to revaluation surplus by
₱15,000,000.
 The 2020 net income is overstated by ₱5,000,000.
After the adjustment, Umber received retirement pay of ₱15,000,000 for his capital interest. What is the
capital balance of Fritz after the retirement of Umber?
a. ₱23,000,000
b. ₱21,000,000
c. ₱18,875,000
d. ₱21,875,000

27. Before the retirement of Ana from ABC Partnership, Ana, Bea, and Cara have capital balance of ₱1M, ₱3M,
and ₱6M, respectively. The pre-retirement capital profit and loss ratio of the partnership is 5:1:4,
respectively. If the capital balance of Bea after Ana’s retirement becomes ₱3,120,000 and a particular asset
is undervalued, how much did Ana receive at the time of her retirement?
a. ₱1,600,000
b. ₱400,000
c. ₱880,000
d. ₱520,000

28. Using the same information in number 27, except from the fact that all assets of the partnership prior to
retirement are properly valued, how much did Ana receive at the time of his retirement?
a. ₱1,600,000
b. ₱400,000
c. ₱880,000
d. ₱520,000

COMPREHENSIVE PROBLEM –
PARTNERSHIP FORMATION, OPERATION, & DISSOLUTION

On June 1, 2014, A and B formed a partnership with cash investments of ₱1,155,000 and ₱1,470,000,
respectively. Upon formation, the partners agreed to bring their capital ratio in proportion with their profit and
loss ratio which is 30% to A and 70% to B and partner B is to invest or withdraw sufficient amount of cash to
conform with the agreement.

Profit allocation were as follows: monthly salaries to A amount to ₱126,000 and to B amount to
₱105,000. The partners will be allowed with interest of 12% of their capital balances at the end of the year
(before profit/loss allocation) for the first year and interest of 15% of the beginning capital in excess of
₱2,520,000 for the subsequent year. B receives a bonus of 20% of net income after deducting the bonus and
his salary. Any remainder is based on profit and loss ratio.

On August 1, 2014, A invested additional ₱280,000 cash and withdrew ₱105,000 on October 1, 2014. On
September 1, 2014, B invested additional ₱168,000 cash and withdrew ₱63,000 on December 1, 2014.

In 2014, the partnership reported net income of ₱1,575,000 before any deductions and each partner has
drawings of ₱525,000 distributed at year-end against share in net income. Loans due to A as of December 31,
2014 amount to ₱133,000.

On January 1, 2015, C was admitted as a partner by purchasing 1/3 interest of B, paying the selling partner
the amount of ₱966,000. C also invested ₱805,000 for a 20% interest in capital of the partnership. There were
no investments/withdrawals during the year. The profit sharing agreement was modified to also include an
annual salary to C of ₱945,000 and C receives a bonus of 15% of net income after deducting the salaries.
The profit and loss ratios were also revised to 24%, 56% and 20% for A, B, and C, respectively. During
2015, the partnership resulted to income of ₱3,780,000 before any deductions and distributed an amount
₱210,000 higher than last year to each partner during 2015 against share in net income.

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 On January 1, 2016, B sold its interest in the partnership to C for ₱2,975,000. After which A and C agreed
to share annual profits of ₱3,220,000 in the ratio of 2:3, A and C respectively. During 2016, A and C had
additional investments of ₱315,000 and ₱210,000, respectively. Each partner received a ₱840,000 distribution at
year end.

On January 1, 2017, A decided to retire from the partnership and was paid ₱3,745,000 cash for his total
partnership interest. It was agreed that assets with a book value of ₱1,015,000 would be adjusted to reflect
their fair values of ₱826,000. Immediately after A’s retirement, D invested cash of ₱3,360,000 for a 30%
interest in the partnership. The agreed capital of the partnership is ₱10,500,000.

1. Capital balance of B at the end of 2014

a. ₱2,798,000
b. ₱3,016,230
c. ₱2,990,110
d. ₱3,025,750

2. Capital balance of A immediately after admission of C

a. ₱1,854,293
b. ₱1,638,770
c. ₱1,928,340
d. ₱1,712,307

3. Capital balance of A immediately after withdrawal of B’s interest in the partnership.

a. ₱1,854,293
b. ₱3,278,345
c. ₱2,129,260
d. ₱2,543,345

4. Capital balance of C at the end of 2016

a. ₱5,210,485
b. ₱5,793,655
c. ₱4,980,275
d. ₱9,875,125

5. Capital balance of C immediately before admission of D

a. ₱5,680,255
b. ₱5,050,450
c. ₱5,299,000
d. ₱5,145,500

6. Increase in the asset of the partnership upon admission of D

a. ₱1,841,000
b. ₱3,150,000
c. ₱5,201,000
d. ₱0

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