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# ACCTG PARTNERSHIP Prob w solution

```Par
t
ner
shi
pExer
ci
ses
Par
t
ner
shi
pFor
mat
i
on
[
1
]
.
Emi
l
andPear
l
f
or
m anewpar
t
ner
shi
p.Emi
l
i
nvest
sP300,
000i
ncashf
or
her60per
centi
nt
er
esti
nt
hecapi
t
al
andpr
of
i
t
soft
hebusi
ness
.Pear
l
cont
r
i
but
es
l
andt
hathasanor
i
gi
nal
costofP40,
000andaf
ai
rmar
ketval
ueofP70,
000,anda
bui
l
di
ngt
hathasat
axbasi
sofP50,
000andaf
ai
rval
ueofP90,
000.Thebui
l
di
ngi
s
subj
ectt
oaP40,
000mor
t
gaget
hatt
hepar
t
ner
shi
pwi
l
l
assume.Whatamountof
cashs
houl
dPear
l
cont
r
i
but
e?
a.P40,
000
b.P80,
000
c.P1
1
0,
000
d.P1
5,
0000
[
2]
.
TheGr
eenandRedpar
t
ner
shi
pwasf
or
medonJanuar
y2,201
1
.Undert
he
par
t
ner
shi
pagr
eement
,eachpar
t
nerhasanequal
i
ni
t
i
al
capi
t
al
bal
anceaccount
ed
f
orundert
hegoodwi
l
l
met
hod.Par
t
ner
shi
pneti
ncomeorl
ossi
sal
l
ocat
ed60% t
o
Gr
eenand40% t
oRed.Tof
or
mt
hepar
t
ner
shi
p,Gr
eenor
i
gi
nal
l
ycont
r
i
but
edasset
s
cost
i
ngP30,
000wi
t
haf
ai
rval
ueofP60,
000onJanuar
y2,201
1
,andRed
cont
r
i
but
edP20,
000i
ncash.Dr
awi
ngsbyt
hepar
t
ner
sdur
i
ng201
1t
ot
al
edP3,
000
byGr
eenandP9,
000byRed.Thepar
t
ner
shi
p’
s201
1neti
ncomewasP25,
000.
Red’
si
ni
t
i
al
capi
t
al
bal
ancei
nt
hepar
t
ner
shi
pi
s
:
a.P20,
000.
b.P25,
000.
c.P40,
000.
d.P60,
000.
[
3]
.
Pi
r
ant
eandWi
l
sondr
af
t
edapar
t
ner
shi
pagr
eementt
hatl
i
st
st
hef
ol
l
owi
ng
asset
scont
r
i
but
edatt
hepar
t
ner
shi
p’
sf
or
mat
i
on:
Cont
r
i
but
edby
Pi
r
ant
e
Cash
Wi
l
son
P40,
000
P60,
000
I
nvent
or
y
-
30,
000
Bui
l
di
ng
-
80,
000
Fur
ni
t
ur
eandequi
pment
30,
000
-
Thebui
l
di
ngi
ssubj
ectt
oamor
t
gageofP20,
000,whi
cht
hepar
t
ner
shi
p
assumed.Thepar
t
ner
shi
pagr
eemental
sospeci
f
i
est
hatpr
of
i
t
sandl
ossesar
et
obe
di
st
r
i
but
edevenl
y.Whatamount
sshoul
dber
ecor
dedascapi
t
al
f
orPi
r
ant
eand
Wi
l
sonatt
hef
or
mat
i
onoft
hepar
t
ner
shi
p?
a. P70,
000andP1
70,
000,r
espect
i
vel
y.
b. P70,
000andP1
50,
000,r
espect
i
vel
y.
c. P1
1
0,
000f
oreachpar
t
ner
.
d. P1
20,
000f
oreachpar
t
ner
.
[
4]
.
AAandBel
enf
or
medapar
t
ner
shi
pandt
heyagr
eedt
oshar
ei
ni
t
i
al
capi
t
al
equal
l
y,al
t
houghAAcont
r
i
but
edP1
50,
000andBel
encont
r
i
but
edP1
26,
000i
n
i
dent
i
f
i
abl
easset
s.Undert
hebonusappr
oacht
ustt
hecapi
t
al
account
s,Bel
en
r
ecei
ved(
gave)abonusequal
t
o:
a. P24,
000
b. P1
2,
000
c. (
P24,
000)
d. (
P1
2,
000)
[
5]
.
AA,BB,andCCar
et
of
or
m apar
t
ner
shi
p.AAi
st
ocont
r
i
but
ecashof
P1
00,
000;BB,P1
0,
000;and,CC,P1
00,
000.AAandCCar
enott
oact
i
vel
y
par
t
i
ci
pat
ei
nt
hebusi
nessbutwi
l
l
r
ef
ercust
omer
s
,whi
l
eBBwi
l
l
managet
hef
i
r
m.BB
hast
ogi
veuphi
spr
esentj
obwhi
chgi
vesheranannual
i
ncomeofP1
20,
000.The
par
t
ner
sdeci
dedt
hatpr
of
i
t
sandl
ossesshal
l
beshar
edequal
l
y.Uponf
or
mat
i
on,
par
t
ner
s’
capi
t
al
bal
anceswoul
dbe:
a. P 70,
000,P 70,
000,andP 70,
000,r
es
pect
i
vel
y.
b. P1
00,
000,P1
0,
000,andP1
00,
000,r
espect
i
vel
y.
c. P1
00,
000,P1
30,
000,andP1
00,
000,r
es
pect
i
vel
y.
d. P1
1
0,
000,P1
1
0,
000,andP1
1
0,
000,r
es
pect
i
vel
y.
[
6]
.
Br
endaandCat
hyf
or
medapar
t
ner
shi
pandagr
eedt
odi
vi
dei
ni
t
i
al
capi
t
al
equal
l
y,event
houghBr
endacont
r
i
but
edP200,
000andCat
hycont
r
i
but
edP1
68,
000
i
ni
dent
i
f
i
abl
easset
s.Undert
hebonusappr
oacht
or
ecor
dt
hecont
r
i
but
i
onsoft
he
par
t
ner
s,Cat
hy’
scapi
t
al
accountshoul
dbecr
edi
t
edf
or
a. P200,
000.
c.P1
84,
000
b. P1
68,
000.
d.P1
00,
000
[
7]
.
OnMay,31
,201
1
,Al
l
en,Bel
en,andCenenf
or
medapar
t
ner
shi
pby
combi
ni
ngt
hei
rbusi
nesses.Al
l
engi
vecashofP50,
000.Bel
engaveapr
oper
t
ywi
t
ha
car
r
yi
ngamountofP30,
000,anor
i
gi
nal
costofP40,
000,andaf
ai
rmar
ketval
ueof
P80,
000.Bel
en’
spr
oper
t
y,however
,hasaP35,
000mor
t
gagef
orwhi
cht
henew
par
t
ner
shi
paccept
edl
egal
r
es
ponsi
bi
l
i
t
i
ver
yequi
pmentwi
t
ha
bookval
ueofP30,
000,anacqui
si
t
i
oncostofP75,
000,andanappr
ai
sedval
ueof
P55,
000.I
twasagr
eedt
hatpr
of
i
t
sandl
ossesar
et
obeshar
edequal
l
y.Thepar
t
ner
wi
t
ht
hebi
ggestcapi
t
al
accountbal
anceasofMay31
,201
1
,i
s
a. Al
l
en
b. Bel
en
c. Cenen
d. Al
l
enhaveequal
capi
t
al
bal
ance.
[
8]
.
Abel
andCar
rf
or
medapar
t
ner
shi
pandagr
eedt
odi
vi
dei
ni
t
i
al
capi
t
al
out
l
ay
equal
l
y,event
houghAbel
cont
r
i
but
edP1
00,
000andCar
rcont
r
i
but
edP84,
000i
n
i
dent
i
f
i
abl
easset
s.Undert
hebonusappr
oacht
ustt
hecapi
t
al
account
s,Car
r
’
s
uni
dent
i
f
i
abl
eassetshoul
dbedebi
t
edf
or
a. P46,
000
b. P8,
0000
c. P1
6,
000
d. P0-
[
9]
.
OnOct
ober1
,201
1
,Car
l
aandCl
ar
aj
oi
nedi
napar
t
ner
shi
p.Car
l
a
cont
r
i
but
edcashwhi
l
eCl
ar
acont
r
i
but
edmer
chandi
sewor
t
hP25,
000andasecondhanddel
i
ver
yt
r
uckcur
r
ent
l
yval
uedatP50,
000butencumber
edbyaoneyear
chat
t
el
mor
t
gagenot
ef
orP1
5,
000.I
fi
ni
t
i
al
capi
t
al
bal
ancesar
et
oconf
or
mt
ot
he
pr
of
i
t
shar
i
ngr
at
i
oof2:
3,r
espect
i
vel
y,t
heamountofcashcont
r
i
but
edbyCar
l
awas:
a. P24,
000
b. P30,
000
c.P40,
000
d.P50,
000
[
1
0]
. AA,BB,andCCar
et
of
or
m apar
t
ner
shi
p.AAi
st
ocont
r
i
but
ecashof
P1
00,
000;BB,P1
0,
000,andCC,anequi
pmentval
uedatP1
00,
000.AAandCCar
e
nott
oact
i
vel
ypar
t
i
ci
pat
ei
nt
hebusi
nessbutwi
l
l
r
ef
ercust
omer
s
,whi
l
eBBwi
l
l
managet
hef
i
r
m.BBhast
ogi
veupherpr
esentj
obwhi
chgi
vesheranannual
i
ncomeofP1
20,
000.Thepar
t
ner
sdeci
dedt
hatpr
of
i
t
sandl
ossesshal
l
beshar
ed
equal
l
y.Uponf
or
mat
i
on,assumi
ngachat
t
el
mor
t
gageofP1
0,
000ont
heequi
pment
i
sassumedbyt
hepar
t
ner
shi
p,t
henetasset
soft
hepar
t
ner
shi
pi
sequal
t
o:
a.P21
0,
000
b.P200,
000
c.P220,
000
d. P330,
000
[
1
1
]
. OnOct
ober1
,201
1
,Mel
andGar
r
i
pool
edt
hei
rasset
sandf
or
ma
par
t
ner
shi
p,wi
t
ht
hef
i
r
mt
ot
akeovert
hei
rbusi
nessasset
sandassumet
hei
r
l
i
abi
l
i
t
i
es.Thepar
t
ner
’
scapi
t
al
sar
et
obebasedonnetasset
st
r
ansf
er
r
edaf
t
ert
he
f
ol
l
owi
ust
ment
s:Gar
r
i
’
si
nvent
or
yi
st
obei
ncr
easedbyP3,
000;anal
l
owance
f
sofP1
,
000andP1
,
500ar
et
obesetupi
nt
hebooksofMel
andGar
r
i
,
r
es
pect
i
vel
y;andP4,
000ofaccount
spayabl
ear
et
ober
ecogni
zedi
nMel
’
sbooks.
Thei
ndi
vi
dual
t
r
i
al
bal
ancesonOct
ober1showt
hef
ol
l
owi
ng:
Mel
Asset
s
P1
1
3,
000
Gar
r
i
P75,
000
Li
abi
l
i
t
i
es
34,
500
5,
000
Capi
t
al
78,
500
70,
000
Whati
st
hecapi
t
al
bal
anceofMel
andGar
r
i
assumi
ngt
heyagr
eet
oshar
ecapi
t
al
equal
l
y?
a. P65,
000
b. P72,
500
c. P74,
250
d. P80,
000
[
1
2]
. ChonaandChar
of
or
medapar
t
ner
shi
ponMay31
,201
1
.Chona’
scont
r
i
but
i
on
consi
s
t
edofherpr
opr
i
et
or
shi
p’
snetasset
swi
t
hcur
r
entf
ai
rval
ueofP60,
000.Char
o
cont
r
i
but
edenoughcasht
osecur
eaonef
our
t
hi
nt
er
esti
nt
hepar
t
ner
shi
p.I
fChonai
s
al
l
owedgoodwi
l
l
cr
edi
tequal
t
o20% ofheri
ni
t
i
al
capi
t
al
,Char
o’
scashcont
r
i
but
i
onwas:
a. P1
5,
000
b. P20,
000
c.P25,
000
d. P30,
000
[
1
3]
. Fl
or
es,Per
al
t
a,andJosear
ef
or
mi
nganewpar
t
ner
shi
p.Fl
or
eswi
l
l
i
nvestcashof
P1
20,
000andhi
sof
f
i
ceequi
pmentcost
i
ngP1
44,
000buthasamar
ketval
ueofP60,
000.
Per
al
t
ai
st
oi
nvestcashofP1
92,
000andJosei
st
ocont
r
i
but
eP60,
000cashandabr
and
newdel
i
ver
yt
r
uckwi
t
hamar
ketval
ueofP1
44,
000al
t
houghheboughti
tf
oronl
yP1
20,
000.
Thepar
t
ner
swi
l
l
shar
epr
of
i
t
sandl
ossesi
nt
her
at
i
oof25:
25:
50f
orFl
or
es
,Per
al
t
aandJose,
r
espect
i
vel
y.
Thecapi
t
al
bal
ancesoft
hepar
t
ner
suponf
or
mat
i
onar
e:
Fl
or
es
Per
al
t
a
Jose
a.
P264,
000 P1
92,
000 P1
80,
000
b.
P1
80,
000 P1
92,
000 P204,
000
c.
P1
92,
000 P1
92,
000 P1
92,
000
d.
P21
2,
000 P21
2,
000 P21
1
,
200
[
1
4]
. DJandEJ,onMay31
,201
1
,pool
edt
hei
rnetasset
st
of
or
m apar
t
ner
shi
p,wi
t
ht
he
newf
i
r
mt
aki
ngovert
hebusi
nessasset
sandassumi
ngt
hei
rl
i
abi
l
i
t
i
es
.Thepar
t
ner
’
scapi
t
al
s
ar
et
obebasedonnetas
set
st
r
ansf
er
r
edaf
t
ert
hef
ol
l
owi
ust
ment
s:al
l
owancef
or
doubt
f
ul
account
sofP1
,
000andP1
,
500ar
et
obes
etupont
hebooksofDJandEJ,
r
espect
i
vel
y;EJ’
si
nvent
or
yi
st
obei
ncr
easedbyP3,
000;and,account
spayabl
eofP4,
000
i
st
ober
ecor
dedonDJ’
sbooks
.Thei
ndi
vi
dual
t
r
i
al
bal
ancesont
hi
sdat
eshow:
DJ
Ass
et
s
EJ
P1
05,
000
P1
1
3,
000
Li
abi
l
i
t
i
es
35,
000
34,
500
Capi
t
al
70,
000
78,
500
Whati
sEJ’
ust
edcapi
t
al
bal
ance?
a. P77,
000
b. P80,
000
c.P81
,
500
d.P85,
500
[
1
5]
. Whenpr
oper
t
yot
hert
hancashi
si
nvest
edi
napar
t
ner
shi
p,atwhatamountshoul
d
t
henoncashpr
oper
t
ybecr
edi
t
edt
ot
hecont
r
i
but
i
ngpar
t
ner
’
scapi
t
al
account
?
a. Fai
rval
ueatt
hedat
eofcont
r
i
but
i
on.
b. Cont
r
i
but
i
ngpar
t
ner
’
sor
i
gi
nal
cost
.
c. Assessedval
uat
i
onf
orpr
oper
t
yt
axpur
poses
.
d. Cont
r
i
but
i
ngpar
t
ner
’
st
axbasi
s
.
[
1
6]
. Pul
ai
nvi
t
esPut
i
t
oj
oi
nhi
sbusi
nessasapar
t
ner
.Thecapi
t
al
accountofPul
ahasa
cr
edi
tbal
anceofP300,
000.Put
i
wi
l
l
i
nvestcashofP1
20,
000andhewi
l
l
begi
venacapi
t
al
cr
edi
tof30% oft
het
ot
al
capi
t
al
af
t
ermaki
ngt
hef
ol
l
owi
ust
ment
si
nt
hebooksofPul
a:
(
a)Theaccumul
at
eddepr
eci
at
i
onoft
heequi
pmenti
st
obei
ncr
easedbyP7,
500;(
b)
Pr
epai
dexpensesar
et
ober
educedbyP2,
400.
Thecapi
t
al
accountofPul
aandPut
i
i
mmedi
at
el
yaf
t
ert
hef
or
mat
i
onoft
hepar
t
ner
shi
p
ar
e:
a. P300,
000andP1
20,
000,r
espect
i
vel
y;
b. P290,
1
00andP1
20,
000,r
espect
i
vel
y;
c. P287,
070andP1
23,
030,r
espect
i
vel
y;
d. P287,
070andP 40,
000,r
espect
i
vel
y.
[
1
7]
. OnMar
ch1
,201
1
,JhanandFebf
or
medapar
t
ner
shi
pwi
t
heachcont
r
i
but
i
ngt
he
f
ol
l
owi
ngasset
s:
Jhan
Feb
Cash
P30,
000
P70,
000
Machi
ner
yandEqui
pment
25,
000
75,
000
Bui
l
di
ng
225,
000
Fur
ni
t
ur
eandFi
xt
ur
es
1
0,
000
-
Thebui
l
di
ngi
ssubj
ectt
oamor
t
gagel
oanofP90,
000,whi
chi
st
obeassumedbyt
he
par
t
ner
shi
p.Thepar
t
ner
shi
pagr
eementpr
ovi
dest
hatJhanandFebshar
epr
of
i
t
sand
l
osses30per
centand70per
cent
,r
espect
i
vel
y.
Ass
umi
ngt
hatt
hepar
t
ner
sagr
eedt
obr
i
ngt
hei
rr
espect
i
vecapi
t
al
i
npr
opor
t
i
ont
ot
hei
r
r
espect
i
vepr
of
i
tandl
ossr
at
i
o,andusi
ngFeb’
scapi
t
al
ast
hebase,howmuchcashi
st
obe
i
nvest
edbyJhan?
a.P1
9,
000
b.P30,
000
c.P40,
000
d.P55,
000
[
1
8]
.
Bel
,Joy,andFr
anco,newCPAs,ar
et
of
or
m apar
t
ner
shi
p.Bel
wi
l
l
cont
r
i
but
ecash
ofP50,
000andhi
scomput
ert
hator
i
gi
nal
l
ycostP60,
000butwi
t
hasecondhandval
ueof
P25,
000.Joywi
l
l
cont
r
i
but
eP80,
000i
ncash.Fr
anco,whosef
ami
l
ysel
l
scomput
er
s,wi
l
l
cont
r
i
but
eP25,
000i
ncashandabr
andnewcomput
erwi
t
hpr
i
nt
ert
hatcosthi
sf
ami
l
y’
s
comput
erdeal
er
shi
pP50,
000butwi
t
har
egul
arsel
l
i
ngpr
i
ceofP60,
000.Thet
hr
eeagr
eet
o
shar
epr
of
i
t
sandl
ossesequal
l
y.Uponf
or
mat
i
on,capi
t
al
bal
ancesar
e:
a. Bel
,P 75,
000;Joy,P80,
000;and,Fr
anco,P85,
000
b. Bel
,P 80,
000;Joy,P80,
000;and,Fr
anco,P80,
000
c. Bel
,P 88,
333;Joy,P88,
333;and,Fr
anco,P88,
334
d. Bel
,P1
1
0,
000;Joy,P80,
000;and,Fr
anco,P75,
000
[
1
9]
. Mar
t
sJi
menezasapar
t
neri
nt
hebusi
ness
.Bal
ancesheetaccount
sof
Mar
kj
ustbef
or
et
ssi
onofJi
menezshow:Cash,P26,
000,account
sr
ecei
vabl
e,
P1
20,
000,mer
chandi
sei
nvent
or
y,P1
80,
000,andaccount
spayabl
eP62,
000.I
twas
agr
eedt
hatf
orpur
posesofest
abl
i
s
hi
ngMar
k’
si
nt
er
est
,t
hef
ol
l
owi
ust
ment
A. Anal
l
owancef
ordoubt
f
ul
account
sof3% ofaccount
sr
ecei
vabl
ei
st
obeest
abl
i
shed;
B. Mer
chandi
sei
nvent
or
yi
st
ust
edupwar
dbyP25,
000;and
C.Pr
epai
dexpensesofP3,
600andaccr
uedl
i
abi
l
i
t
i
esofP4,
000ar
et
ober
ecogni
zed.
I
fJi
menezi
st
oi
nvestsuf
f
i
ci
entcasht
oobt
ai
n2/
5equi
t
yi
nt
hepar
t
ner
s
hi
p,howmuch
woul
dJi
menezcont
r
i
but
et
ot
henewpar
t
ner
shi
p?
a.P1
76,
000
b.P1
90,
000
c.P 95,
000
d.P1
1
3,
980
[
20]
. Thebal
ancesheetasofJul
y31
,201
1f
ort
hebusi
nessownedbyGl
or
i
ant
sshows
t
hef
ol
l
owi
ngasset
sandl
i
abi
l
i
t
i
es:
Cash
P 2,
500
Account
sRecei
vabl
e
1
0,
000
Mer
chandi
seI
nvent
or
y
1
5,
000
Fi
xt
ur
es
1
8,
000
Account
sPayabl
e
6,
000
I
ti
sest
i
mat
edt
hat5% oft
heaccount
sr
ecei
vabl
esmaypr
oveuncol
l
ect
i
bl
e.Mer
chandi
se
i
nvent
or
yi
ncl
udesobsol
et
ei
t
emscost
i
ngP5,
000ofwhi
chP2,
000mi
ghtst
i
l
l
ber
eal
i
zed.
Depr
eci
at
i
onhasneverbeenr
ecor
dedf
ort
hef
i
xt
ur
eswhi
char
eal
r
woyear
sol
d.They
haveanest
i
mat
edusef
ul
l
i
f
eof1
0year
s
,andhaveacur
r
entf
ai
rval
ueofP20,
000.Cr
uzant
s
i
st
t
t
edasapar
t
neruponhi
si
nvest
mentofP20,
000cashandP1
0,
000wor
t
hof
mer
chandi
se.Whati
st
het
ot
al
asset
soft
hepar
t
ner
shi
p?
a.70,
500
b.48,
000
c.67,
500
d.74,
000
Quest
i
ons21and22ar
ebasedont
hef
ol
l
owi
ngi
nf
or
mat
i
on:
Sel
ect
edbal
ancesheetaccount
sofSi
l
vanoonDecember31
,201
1ar
eshownbel
ow:
Cash
P30,
000
Account
sr
ecei
vabl
e
25,
000
I
nvent
or
y
45,
000
Fur
ni
t
ur
e
32,
000
Account
spayabl
e
8,
000
Thef
ol
l
owi
ust
ment
sar
et
or
eheagr
eet
tPegasusasapar
t
neri
n
exchangef
orhi
si
nvest
mentofP20,
000cash:
sshoul
dbepr
ovi
ded.
&sect; Thef
ai
rval
ueoft
hef
ur
ni
t
ur
ei
sP27,
000.
&sect; P5,
000oft
hei
nvent
or
yi
sobsol
et
ebutcanst
i
l
l
besol
df
orP3,
000.
[
21
]
.
Af
t
ust
ment
,howmuchcapi
t
al
shoul
dber
ef
l
ect
edi
nt
hebooksofSi
l
vano?
a. P1
1
5,
250
b. P1
1
6,
250
c.P1
24,
000
d.P1
32,
250
[
22]
.
Howmuchi
st
het
ot
al
asset
soft
henewpar
t
ner
shi
p?
a.P1
1
6,
250
b.P1
24,
000
c.P1
24,
250
d.P1
44,
250
[
23]
. OnSept
ember30,201
1
,Pai
t
sGai
nf
orani
nt
er
esti
nhi
sbusi
ness
.Ont
hi
s
dat
e,Pai
n’
scapi
t
al
accountshowsabal
anceofP1
58,
400.Thef
ol
l
owi
ngwer
eagr
eedupon
bef
or
et
hef
or
mat
i
onoft
hepar
t
ner
shi
p:
1
. Pr
epai
dexpensesofP1
7,
500andaccr
uedexpensesofP5,
000ar
et
ober
ecogni
zed.
2. 5% oft
heout
st
andi
ngaccount
sr
ecei
vabl
eofLopezamount
i
ngt
oP1
00,
000i
st
obe
r
ecogni
zedasuncol
l
ect
i
bl
es.
3. Gai
ni
st
obecr
edi
t
edwi
t
haonet
hi
r
dequi
t
yi
nt
hepar
t
ner
shi
pandi
st
oi
nvestcash
asi
def
r
om t
heP50,
000wor
t
hofmer
chandi
se.
Theamountofcasht
obei
nvest
edbyGai
nandt
het
ot
al
capi
t
al
oft
hepar
t
ner
shi
par
e:
a.32,
950and248,
850,r
espect
i
vel
y.
b.55,
300and221
,
200,r
espect
i
vel
y.
c.82,
950and248,
850,r
espect
i
vel
y.
d.32,
950and1
71
,
200,r
espect
i
vel
y.
[
24]
. OnMay1
,201
1
,Jul
yandJunef
or
medapar
t
ner
shi
pandagr
eedt
oshar
epr
of
i
t
s
andl
ossesi
nt
her
at
i
oof3:
7,r
espect
i
vel
y.Jul
ycont
r
i
but
edacomput
ert
hatcosthi
m
P50,
000.Junecont
r
i
but
edP200,
000cash.Thecomput
erwassol
df
or55,
000onMay1
,
201
1i
mmedi
at
el
yaf
t
ert
hef
or
mat
i
onoft
hepar
t
ner
shi
p.Whatamountshoul
dber
ecor
ded
i
nJul
y’
scapi
t
al
accountonf
or
mat
i
onoft
hepar
t
ner
shi
p?
a. P55,
000
b. P51
,
000
c. P60,
000
d. P50,
000
[
25]
. Yel
l
ow,Or
angeandVi
ol
etf
or
m apar
t
ner
s
hi
ponMay1
,201
1
.Theyagr
eet
hat
Yel
l
owwi
l
l
cont
r
i
but
eof
f
i
ceequi
pmentwi
t
hat
ot
al
f
ai
rval
ueofP40,
000;Or
angewi
l
l
cont
r
i
but
edel
i
ver
yequi
pmentwi
t
haf
ai
rval
ueofP80,
000;andVi
ol
etwi
l
l
cont
r
i
but
ecash.I
f
Vi
ol
etwant
saonet
hi
r
di
nt
er
esti
nt
hecapi
t
al
andpr
of
i
t
s,howmuchshoul
dshei
nvest
?
a.P 40,
000
b.P 60,
000
c.P1
20,
000
d.P1
80,
000
[
26]
. Wi
l
derandNestwi
l
l
pool
t
hei
rnetasset
sandf
or
m apar
t
ner
shi
p,whi
chwi
l
l
t
ake
overt
heasset
sandassumet
hel
i
abi
l
i
t
i
es.Theagr
eedcapi
t
al
oft
henewpar
t
ner
shi
pi
st
he
t
ot
al
netasset
st
obet
r
ans
f
er
r
edsubj
ectt
ot
hef
ol
l
owi
ust
ment
s:
&sect; Wi
l
der
’
si
nvent
or
yi
st
obei
ncr
eas
edbyP3,
000.
&sect; Account
sr
ecei
vabl
eofP1
,
000andP1
,
500f
orWi
l
derandNestr
espect
i
vel
y,wi
l
l
be
wr
i
t
t
enof
f
.
&sect; Accr
uedexpensesofP4,
000ar
et
ober
ecogni
zedi
nWi
l
der
’
sbooks.
ust
edcapi
t
al
ofWi
l
deri
sP78,
500andNesti
sP70,
000.
Whati
st
hecapi
t
al
bal
anceofeachpar
t
nerassumi
ngt
heyagr
eet
obeequal
par
t
ner
s?
a.P65,
000
b.P72,
500
c. P74,
250
d. P80,
000
[
27]
. OnOct
ober1
,201
1
,Cl
ar
aandMar
i
aj
oi
nedi
napar
t
ner
shi
p.Cl
ar
acont
r
i
but
ed
cashwhi
l
eMar
i
acont
r
i
but
edmer
chandi
sewor
t
hP25,
000andasecond–handdel
i
ver
y
t
r
uckcur
r
ent
l
yval
uedatP50,
000butencumber
edbyaoneyearchat
t
el
mor
t
gagenot
ef
or
P1
5,
000.I
fi
ni
t
i
al
capi
t
al
bal
ancesar
et
oconf
or
mt
ot
hepr
of
i
t
shar
i
ngr
at
i
oof2:
3,
r
espect
i
vel
y,t
heamountofcashcont
r
i
but
edbyCl
ar
awas:
a.P24,
000
b.P30,
000
c.P40,
000
d.P50,
000
Quest
i
ons28and29ar
ebasedont
hef
ol
l
owi
ngi
nf
or
mat
i
aPar
t
ner
shi
p:
AgaandMat
aar
epl
anni
ngt
of
or
m apar
t
ner
shi
p.Agawi
l
l
i
nvestP20,
000f
ora20% i
nt
er
est
i
nt
henewpar
t
ner
shi
p.Mat
awi
l
l
i
nvestcashandhi
sequi
pmentwi
t
hamar
ketval
ueof
P50,
000.Theywi
l
l
shar
epr
of
i
t
sandl
ossesequal
l
y.
[
28]
.
Howmuchcashshoul
dMat
ai
nvest
?
a.P30,
000
b.P50,
000
c.P60,
000
d.P80,
000
[
29]
.
Howmuchi
st
het
ot
al
cashi
nvest
mentoft
hepar
t
ner
s?
a.P30,
000
b.P50,
000
c.P60,
000
d.P80,
000
[
30]
. Al
andMacmoddeci
det
of
or
m apar
t
ner
shi
p.Thei
ni
t
i
al
i
nvest
ment
soft
he
par
t
ner
swi
l
l
i
ncl
udecashofP1
20,
000f
orAl
andP80,
000f
orMacmod.Al
wi
l
l
t
r
ansf
erhi
s
of
f
i
ceequi
pmentwi
t
habookval
ueofP96,
000andaf
ai
rmar
ketval
ueofP84,
000t
ot
he
par
t
ner
shi
p.Macmodwi
l
l
t
r
ansf
erhi
sl
andf
ai
r
l
yval
uedatP1
,
000,
000andt
hebui
l
di
ng
t
her
eonf
ai
r
l
yval
uedatP600,
000.Macmodhasj
ustboughtt
heseatal
umpsum pr
i
ceof
P1
,
800,
000.I
t
i
on,t
hepar
t
ner
shi
pwi
l
l
assumet
hemor
t
gageofP400,
000ont
he
bui
l
di
ng.
Whatwi
l
l
bet
het
ot
al
capi
t
al
oft
hepar
t
ner
shi
p?
a.P1
,
484,
000
b.P1
,
496,
000
c.P1
,
684,
000
d.P1
,
946,
000
Par
t
ner
shi
pOper
at
i
on
[
31
]
. Mr
.Zoom andhi
sver
ycl
os
ef
r
i
end,Mr
.Boom,f
or
medapar
t
ner
shi
ponJanuar
y1
,
201
1
,wi
t
hZoom cont
r
i
but
i
ngP1
6,
000cashandBoom cont
r
i
but
i
ngequi
pment
,wi
t
habook
val
ueofP6,
400andf
ai
rval
ueofP4,
800,andi
nvent
or
yi
t
ems
,wi
t
habookval
ueofP2,
400
andf
ai
rval
ueofP3,
200.Dur
i
ng201
1
t
i
onal
i
nvest
ment
sofP1
,
600onApr
i
l
1andP1
,
600onJune1
,andwi
t
hdr
ewP4,
000onSept
ember1
t
i
onal
i
nvest
ment
sorwi
t
hdr
awal
sdur
i
ngt
heyear
.Whatwast
heaver
agecapi
t
al
bal
anceofMr
.
Boom dur
i
ng201
1
?
a. P9,
600
b. P8,
800
c. P8,
000
d. P7,
200
[
32]
. Dul
ceMar
t
i
n,apar
t
neri
napar
t
ner
shi
pt
hatcar
r
i
est
henameofTheSweetShop,
hasa30% par
t
i
ci
pat
i
oni
npar
t
ner
shi
ppr
of
i
t
s
.Hercapi
t
al
accounthasanetdecr
easeof
P48,
000dur
i
ng201
1
.I
nt
hesameyear
,shewi
t
hdr
ewP1
04,
000(
char
gedagai
nsthercapi
t
al
account
)andcont
r
i
but
edpr
oper
t
yval
uedatP20,
000t
ot
hepar
t
ner
shi
p.Theneti
ncomeof
t
hepar
t
ner
shi
pf
or201
1was
:
a. P 36,
000
b. P1
20,
000
c. P1
32,
000
d. P440,
000
[
33]
. Par
t
ner
sJose,Luci
ano,andPl
aci
dohaveaver
agecapi
t
al
bal
ancesofP240,
000,
P1
20,
000,andP80,
000,r
espect
i
vel
y,dur
i
ng201
1
.Eachpar
t
nerr
ecei
ves1
0% i
nt
er
eston
hi
saver
agecapi
t
al
bal
ance.Af
t
erdeduct
i
ngsal
ar
i
esofP60,
000f
orJoseandP40,
000f
or
Pl
aci
do,t
her
esi
dual
pr
of
i
torl
ossi
sdi
vi
dedequal
l
y.I
n201
1
,t
hepar
t
ner
shi
psust
ai
neda
P66,
000l
ossbef
or
epar
t
ner
s’
i
nt
er
est
sandsal
ar
i
es
.Byhowmuchwoul
dPl
aci
do’
scapi
t
al
accountchange?
a. P20,
000i
ncr
ease
b. P22,
000decr
ease
c. P32,
000decr
ease
d. P48,
000i
ncr
ease
[
34]
. OnJanuar
y1
,201
1
,ZeepandBeephavecapi
t
al
bal
ancesofP20,
000and
P1
6,
000,r
espect
i
vel
y.OnJul
y1
,201
1
,Zeepi
nvest
t
i
onal
P4,
000whi
l
eBeep
wi
t
hdr
ewP1
,
000.Pr
of
i
t
sandl
ossesar
edi
vi
dedasf
ol
l
ows:Beepi
st
hemanagi
ngpar
t
ner
andassuchshal
l
r
ecei
veP1
6,
000assal
ar
y,wi
t
hZeepr
ecei
vi
ngP7,
200;bot
hpar
t
ner
s
shoul
dr
ecei
vei
nt
er
estof1
0% basedont
hei
rbegi
nni
ngcapi
t
al
bal
ances,t
oof
f
setwhat
ever
di
f
f
er
encei
ncapi
t
al
i
nvest
ment
st
heyhave;and,anyr
emai
ndershal
l
bedi
vi
dedequal
l
y.The
neti
ncomeoft
hepar
t
ner
shi
pf
or201
1wasP9,
600.WhatwasZeep’
sshar
ei
nneti
ncome
f
or201
1
?
a. P9,
200
b. P4,
800
c. P 880
d. P 600
[
35]
. RedandWhi
t
ef
or
medapar
t
ner
shi
pi
n201
1
.Thepar
t
ner
shi
pagr
eementpr
ovi
des
f
orannual
sal
ar
yal
l
owancesofP55,
000f
orRedandP45,
000f
orWhi
t
e.Thepar
t
ner
s
shar
epr
of
i
t
sequal
l
yandl
ossesi
na60:
40r
at
i
o.Thepar
t
ner
shi
ni
ngsofP80,
000
f
or201
1bef
or
eanyal
l
owancet
opar
t
ner
s
.Whatamountoft
heseear
ni
ngsshoul
dbe
cr
edi
t
edt
oeachpar
t
ner
’
scapi
t
al
account
?
Red
Whi
t
e
a.P40,
000
P40,
000
b.P43,
000
P37,
000
c.P44,
000
P36,
000
d.P45,
000
P35,
000
[
36]
. OnJanuar
y2,201
1
,BuenoandPer
ezf
or
medapar
t
ner
shi
pwi
t
hcapi
t
al
di
st
r
i
but
i
onsofP1
75,
000andP25,
000,r
espect
i
vel
y.Theyagr
eedt
oshar
epr
of
i
t
sandl
os
ses
80% and20%,r
espect
i
vel
y.Per
ezi
st
hegener
al
managerandwor
ksi
nt
hepar
t
ner
shi
pf
ul
l
t
i
me.Per
ezi
sgi
ven sal
ar
yofP5,
000amont
h;ani
nt
er
estof5% onst
ar
t
i
ngcapi
t
al
;anda
bonusof1
5% ofnetpr
of
i
tbef
or
et
hesal
ar
y,i
nt
er
es
t
,andbonus
.Thecondensedpr
of
i
tand
l
ossst
at
ementoft
hepar
t
ner
shi
p,f
ort
heyearendedDecember31
,201
1
,i
sasf
ol
l
ows:
Netsal
es
Costofsal
es
Gr
osspr
of
i
tonsal
es
P875,
000
700,
000
P1
75,
000
Expenses(
i
ncl
udi
ngsal
ar
y,i
nt
er
estandbonus
)
Netpr
of
i
t
Thebonusi
n201
1i
s
a. P1
3,
304.
35
b. P1
8,
000.
00
c. P1
5,
300.
00
d. P20,
700.
00
1
43,
000
P 32,
000
Quest
i
ons37&amp;38ar
ebasedont
hef
ol
l
owi
ngi
nf
or
mat
i
on:
Her
m,Mar
c,andAl
exf
or
medapar
t
ner
shi
ponJanuar
y1
,201
1
,andcont
r
i
but
edP1
50,
000,
P200,
000,andP250,
000,r
espect
i
vel
y.Thear
t
i
cl
esofcopar
t
ner
shi
ppr
ovi
dest
hatt
he
oper
at
i
ngi
ncomebeshar
edamongt
hepar
t
ner
sasf
ol
l
ows:assal
ar
y,P24,
000f
orHer
m,
P1
8,
000f
orMar
c,andP1
2,
000f
orAl
ex;i
nt
er
estof1
2% ont
heaver
agecapi
t
al
dur
i
ng201
1
oft
het
hr
eepar
t
ner
s;and,t
her
emai
nderi
nt
her
at
i
oof2:
4:
4,r
espect
i
vel
y.
Theoper
at
i
ngi
ncomef
ort
heyearendi
ngDecember31
,201
1amount
edt
oP1
76,
000.Her
m
cont
r
i
but
t
i
onal
capi
t
al
ofP30,
000onJul
awi
ngofP1
0,
000on
Oct
ober1
;Mar
ccont
r
i
but
t
i
onal
capi
t
al
ofP20,
awi
ng
ofP1
0,
000onOct
ober1
;and,Al
awi
ngofP30,
000onNovember1
.
[
37]
.
Thedi
vi
si
onoft
heP1
76,
000oper
at
i
ngi
ncomei
s:
a. Her
m,P53,
760;Mar
c,P62,
520;and,Al
ex,P59,
720
b. Her
m,P35,
200;Mar
c,P70,
400;and,Al
ex,P70,
400
c. Her
m,P48,
400;Mar
c,P66,
800;and,Al
ex,P60,
800
d. Her
m,P53,
1
80;Mar
c,P62,
060;and,Al
ex,P60,
760
[
38]
.
Thepar
t
ner
s’
capi
t
al
bal
ancesonDecember31
,201
1ar
e:
a. Her
m,P1
79,
680;Mar
c,P229,
360;and,Al
ex,P239,
360
b. Her
m,P1
79,
760;Mar
c,P229,
520;and,Al
ex,P239,
520
c. Her
m,P1
89,
680;Mar
c,P239,
360;and,Al
ex,P269,
360
d. Her
m,P223,
1
80;Mar
c,P272,
060;and,Al
ex,P280,
760
[
39]
. Thepar
t
ner
shi
pagr
eementofBi
ngandBongpr
ovi
dest
hatBi
ngi
st
or
ecei
vea
20% bonusonpr
of
i
t
sbef
or
et
hebonus
.Remai
ni
ngpr
of
i
t
sandl
ossesar
edi
vi
dedi
nt
he
r
espect
i
ver
at
i
oof2:
3.Whi
chpar
t
nerhasagr
eat
agewhent
hepar
t
ner
shi
pr
eal
i
zes
apr
of
i
torwheni
tsust
ai
nsal
oss?
Pr
of
i
t
a. Bi
ng
Loss
Bong
b. Bi
ng
Bi
ng
c. Bong
Bi
ng
d. Bong
Bong
[
40]
. Mi
chel
l
e,anact
i
vepar
t
neri
nt
heMi
chel
l
eEsmePar
t
ner
shi
p,r
ecei
vesanannual
bonusof25% oft
hepar
t
ner
shi
pi
ncomeaf
t
erdeduct
i
ngt
hebonus
.Fort
heyearended
December31
,201
1
,t
hepar
t
ner
shi
pi
ncomebef
or
ebonusamount
edt
oP240,
000.The
bonusofMi
chel
l
ef
ort
heyear201
1i
s
a. P45,
000
b. P48,
000
c. P60,
000
d. P80,
000
Par
t
ner
shi
pDi
ssol
ut
i
ssi
onofPar
t
ner
[
41
]
. Mar
kandVal
er
i
ear
epar
t
ner
swi
t
hcapi
t
al
sP200,
000andP1
00,
000andshar
i
ng
pr
of
i
t
sandl
ossesat3:
1
,r
espect
i
vel
y.Theydeci
dedt
tNor
aasanewpar
t
nerwi
t
ha
50% i
nt
er
esti
nt
hef
i
r
m.Nor
ai
nves
t
edcashofP1
50,
000,andMar
kandVal
er
i
et
r
ansf
er
r
ed
por
t
i
onsoft
hei
rcapi
t
al
sasabonust
oNor
a.Af
t
erNor
a’
ssi
on,Val
er
i
e’
scapi
t
al
woul
d
be:
a. P 37,
500
c.P 81
,
250
b. P 56,
250
d.P1
00,
000
[
42]
. Ti
t
oandVi
c,par
t
ner
sshar
i
ngpr
of
i
t
sandl
ossesequal
l
y,havecapi
t
al
bal
ancesof
P90,
000each.Joeyi
t
t
edasanewpar
t
ner
,maki
ngcashi
nvest
mentofP1
20,
000,t
o
aonet
hi
r
di
nt
er
esti
nbot
hcapi
t
al
andear
ni
ngs
.I
fJoeyi
scr
edi
t
edi
nf
ul
l
f
ort
heamountof
hi
si
nvest
ment
,t
henewcapi
t
al
oft
hepar
t
ner
shi
pwoul
dbe:
a. P240,
000.
b. P300,
000.
c. P360,
000.
d. P420,
000.
[
43]
. Moonbi
t
sPar
t
ner
shi
ncomeofP8,
000f
ort
hemont
hendedSept
ember
30,201
1
.Sunshi
nepur
chasedani
nt
er
esti
nMoonbi
t
sPar
t
ner
shi
pofLi
zandDi
ckbypayi
ng
Li
zP32,
000f
orhal
fofhercapi
t
al
andhal
fofher50% pr
of
i
t
shar
i
ngi
nt
er
estonOct
ober1
,
201
1
.Att
hi
st
i
me,Li
z’
scapi
t
al
bal
ancewasP24,
000andDi
ck’
scapi
t
al
wasP56,
000.
Sunshi
neshoul
dr
ecei
vecapi
t
al
cr
edi
tequal
t
o:
a. P1
2,
000
b. P1
6,
000
c. P20,
000
d. P26,
667
[
44]
. Sar
ahi
t
t
edi
nt
ot
hef
i
r
m ofJoy,AAandPi
l
ar
.Theol
dpar
t
ner
sagr
eedt
osel
l
t
oSar
ahonef
our
t
hoft
hei
rr
espect
i
veequi
t
i
esandpr
of
i
tshar
e.Sar
ahpai
dat
ot
al
pr
i
ceof
P1
,
000,
000.Bef
or
eSar
ah’
ssi
on,Joy,AAandPi
l
arhavecapi
t
al
bal
ancesof
P2,
000,
000,P1
,
000,
000andP500,
000andt
heys
har
epr
of
i
t
satt
her
at
i
oof6:
3:
1
.
Par
t
ner
shi
passet
sar
ef
ai
r
l
yst
at
edandi
mpl
i
edgoodwi
l
l
i
st
ober
ecogni
zedpr
i
ort
oSar
ah’
s
ssi
on.
Thenewcapi
t
al
oft
hepar
t
ner
shi
pi
s:
a.P3.
5M
b.P4M
c.P5M
d.P4.
5M
Quest
i
ons45&amp;46ar
ebasedont
hef
ol
l
owi
ngi
nf
or
mat
i
on:
Mi
t
z,Mar
candMer
tar
epar
t
ner
sshar
i
ngpr
of
i
ti
na5:
3:
2r
at
i
o,andwi
t
hcapi
t
al
bal
ancesof
P95,
000,P80,
000,andP60,
000,r
espect
i
vel
y,onDecember31
,201
1
.Thepar
t
ner
sdeci
ded
t
tVi
nceasanewpar
t
neronJanuar
y1
,201
1
.Vi
ncewi
l
l
cont
r
i
but
ecashofP80,
000t
o
t
hepar
t
ner
shi
pandal
sopayP1
5,
000f
or1
5% ofMar
c’
sshar
e.Vi
ncei
st
ohavea20% shar
e
i
npr
of
i
t
s.Af
t
ert
ssi
onofVi
nce,t
het
ot
al
capi
t
al
wi
l
l
beP330,
000andVi
nce’
scapi
t
al
wi
l
l
beP70,
000.
[
45]
. Upont
ss
i
onofVi
nce,t
het
ot
al
amountof“
goodwi
l
l
”f
ort
heol
dpar
t
ner
s
woul
dbe:
a. P 7,
000
b. P1
5,
000
c. P22,
000
d. P37,
000
[
46]
.
Af
t
ert
ss
i
onofVi
nce,Mar
c’
scapi
t
al
bal
ancewoul
dbe:
a. P72,
600
b. P74,
600
c. P79,
1
00
d. P81
,
1
00
[
47]
ssi
onofanewpar
t
nert
oa20% i
nt
er
estf
orani
nvest
mentofP1
8,
000,
wi
t
hat
ot
al
agr
eedcapi
t
al
ofP75,
000,wi
l
l
r
esul
ti
n:
a. Goodwi
l
l
t
ot
heol
dpar
t
ner
s
.
b. Goodwi
l
l
t
ot
henewpar
t
ner
.
c. Bonust
ot
heol
dpar
t
ner
s
.
d. Bonust
ot
henewpar
t
ner
.
[
48]
. Bl
ackandWhi
t
ear
epar
t
ner
swhohavecapi
t
al
bal
ancesofP600,
000and
P480,
000,andshar
i
ngpr
of
i
t
si
nt
her
at
i
oof3:
2.Bl
uei
t
t
edasapar
t
neruponi
nvest
i
ng
P220,
000f
ora25% i
nt
er
esti
nt
hef
i
r
m,andpr
of
i
t
sar
et
obeshar
edequal
l
y.Gi
vent
he
choi
cebet
weengoodwi
l
l
andbonusmet
hods
,Bl
uewoul
d:
a. Pr
ef
erbonusmet
hodduet
oBl
ue’
sgai
nofP1
05,
000
b. Pr
ef
erbonusmet
hodduet
oBl
ue’
sgai
nofP1
40,
000.
c. Pr
ef
ergoodwi
l
l
met
hodduet
oBl
ue’
sgai
nofP1
40,
000.
d. Bei
ndi
f
f
er
entf
orgoodwi
l
l
andbonusmet
hodsar
et
hesame.
Quest
i
ons49and50ar
ebasedont
hef
ol
l
owi
ngi
nf
or
mat
i
on:
Ter
r
yandTi
mmyent
er
edi
nt
oapar
t
ner
shi
ponMay31
,201
1
,cont
r
i
but
i
ngcashofP48,
000
andP32,
000,r
espect
i
vel
y,andagr
eei
ngt
odi
vi
deear
ni
ngsi
nt
her
at
i
ooft
hei
ri
ni
t
i
al
i
nvest
ment
saf
t
eral
l
owi
ngannual
sal
ar
yal
l
owanceofP1
2,
000each.OnDecember31
,
201
1
,t
hei
ncomesummar
edi
tbal
anceofP34,
000,whi
l
edr
awi
ng
account
ss
howeddebi
tbal
ancesofP1
4,
000f
orTer
r
yandP1
0,
000f
orTi
mmy.
Att
hebegi
nni
ngoft
henextyear
t
t
edi
nt
ot
hef
i
r
m asanewpar
t
nerwi
t
ha
331
/
3% i
nt
er
estf
oracapi
t
al
cr
edi
tequal
t
ohi
scas
hi
nvest
mentofP60,
000.Ter
r
yand
Ti
mmyt
henef
f
ect
edapr
i
vat
ecashset
t
l
ementbet
weent
hemsel
vesi
nor
dert
omaket
he
capi
t
al
bal
ancesconf
or
mt
oanewpr
of
i
t
shar
i
ngr
at
i
oof4:
2:
3,r
espect
i
vel
y,wi
t
hsal
ar
y
al
l
owancesscr
apped.
[
49]
. Howmuchwast
heamountofgoodwi
l
l
,i
fany,t
hatwasr
ecogni
zedi
nconnect
i
on
wi
t
ht
ssi
onoft
henewpar
t
ner
?
a. P20,
000
b. P24,
000
c. P30,
000
d. P36,
000
[
50]
. Howmuchwast
heamountoft
hepr
i
vat
ecashset
t
l
ementef
f
ect
edbet
weent
he
ol
dpar
t
ner
s?
a. P5,
000
c.P1
2,
000
b. P9,
000
d.P1
5,
000
Par
t
ner
shi
pDi
ssol
ut
i
on–Ret
i
r
ementofPar
t
ner
[
51
]
. WhenNenar
et
i
r
edf
r
om t
hepar
t
ner
shi
pofNena,Ni
na,andNona,t
hef
i
nal
set
t
l
ementofNena’
si
nt
er
estexceededhercapi
t
al
bal
ance.Undert
hebonusmet
hod,t
he
excessi
s:
a. Recor
dedasgoodwi
l
l
.
b. Recor
dedasanexpense.
c. Ofnoef
f
ectt
ot
hecapi
t
al
account
sofNi
naandNona.
d. Deduct
edf
r
om t
hecapi
t
al
accountbal
ancesofNi
naandNona.
[
52]
. Luz,Vi
,andMi
ndaar
epar
t
ner
swi
t
hcapi
t
al
bal
ances,asofDecember31
,201
1
,of
P300,
000,P300,
000andP200,
000,r
espect
i
vel
y,andwhoshar
epr
of
i
t
sandl
ossesequal
l
y.
Mi
ndawi
shest
owi
t
hdr
aw,andi
ti
sagr
eedt
hatshei
st
ot
akecer
t
ai
nf
ur
ni
t
ur
ei
t
ems
,wi
t
h
secondhandval
ueofP50,
000andanot
ef
ort
hebal
anceofheri
nt
er
est
.Thef
ur
ni
t
ur
e
i
t
emsar
ecar
r
i
edi
nt
hebooksatP65,
000;br
andnew,however
,t
heywoul
dcostP80,
000.
t
heval
ueoft
henot
et
hatMi
ndawoul
dgeti
s:
a. P1
20,
000.
c.P1
45,
000
b. P1
35,
000.
d.P1
50,
000
[
53]
. Juan,Pedr
o,andPabl
oar
epar
t
ner
swhoshar
epr
of
i
t
sandl
ossesi
na5:
3:
2r
at
i
o
and,onJanuar
y1
,201
1
,havecapi
t
al
bal
ancesofP90,
000,P1
60,
000,andP200,
000,
r
espect
i
vel
y.Pabl
owi
t
hdr
ewf
r
om t
hepar
t
ner
shi
ponJul
y1
,201
1andt
hepar
t
ner
sagr
eed
t
hat
,asoft
hi
sdat
e,cer
t
ai
ni
nvent
or
yi
t
emswoul
dhavet
ober
eval
uedatP70,
000f
r
om t
hei
r
r
ecor
dedcostofP50,
000.Fort
hesi
xmont
hper
i
odendi
ngJune30,201
1
,t
hepar
t
ner
shi
p
r
eal
i
zedaneti
ncomeofP1
30,
000.Thepar
t
ner
sdeci
dedt
hatPabl
oshoul
dbepai
d
P245,
000f
orhi
si
nt
er
estandt
her
emai
ni
ngpar
t
ner
s
’
capi
t
al
account
sshoul
ust
ed
f
oranygoodwi
l
l
r
esul
t
i
ngf
r
om t
heset
t
l
ement
.Thepaymentt
oPabl
oi
ncl
udedgoodwi
l
l
of
:
a. P1
5,
000.
b. P25,
000.
c. P42,
500.
d. P50,
000.
[
54]
.
Paco,Qui
n,andRomyar
epar
t
ner
swi
t
hcapi
t
al
bal
ancesonJune30,201
1of
P300,
000,P300,
000andP200,
000,r
espect
i
vel
y,andshar
i
ngpr
of
i
t
sandl
ossesequal
l
y.
Romyi
st
or
et
i
r
e,andi
ti
sagr
eedt
hathei
st
ot
akecer
t
ai
nf
ur
ni
t
ur
e(
wi
t
hsecondhandval
ue
ofP50,
000)andanot
ef
orhi
si
nt
er
est
.Thef
ur
ni
t
ur
ei
scar
r
i
edi
nt
hebooksatP65,
000,but
br
andnewwoul
dcostP80,
000.Romy’
sacqui
si
t
i
onoft
hef
ur
ni
t
ur
ewoul
dr
esul
ti
n:
a. Reduct
i
oni
ncapi
t
al
ofP5,
000eachf
orRaco,Qui
nandRomy
b. Reduct
i
oni
ncapi
t
al
ofP7,
500eachf
orPacoandQui
n
c. Reduct
i
oni
ncapi
t
al
ofP1
5,
000f
orRomy
d. Reduct
i
oni
ncapi
t
al
ofP55,
000f
orRomy.
[
55]
. Luz,Vi
,andMi
ndaar
epar
t
ner
swi
t
hcapi
t
al
bal
ances,asofDecember31
,201
1
,of
P300,
000,P300,
000,andP200,
000,r
espect
i
vel
y,andwhoshar
epr
of
i
t
sandl
ossesequal
l
y.
Mi
ndawi
shest
owi
t
hdr
aw,andi
ti
sagr
eedt
hatshei
st
ot
akecer
t
ai
nf
ur
ni
t
ur
ei
t
ems
,wi
t
ha
secondhandval
ueofP50,
000,andanot
ef
ort
hebal
anceofheri
nt
er
est
.Thef
ur
ni
t
ur
e
i
t
emsar
ecar
r
i
edi
nt
hebooksatP65,
000;br
andnew,however
,t
heywoul
dcostP80,
000.
Theval
ueoft
henot
et
hatMi
ndawoul
dgeti
s:
a. P1
20,
000
c.P1
45,
000
b. P1
35,
000
d.P1
50,
000
[
56]
.
Thecondensedbal
ancesheetoft
hepar
t
ner
shi
pofTi
c,TacandToeas
Netasset
s
Ti
c,capi
t
al
(
50%)
P400,
000
P200,
000
Tac,capi
t
al
(
30%)
1
20,
000
Toe,capi
t
al
(
20%)
80,
000
Tot
al
capi
t
al
P400,
000
Asofsai
ddat
e,Ti
cr
et
i
r
edf
r
om t
hepar
t
ner
shi
p.Peragr
eement
,Ti
cwaspai
dP225,
000f
or
hi
si
nt
er
estandt
hegoodwi
l
l
i
mpl
i
edf
r
om t
heset
t
l
ementwasr
ecor
ded.Af
t
erTi
c’
sr
et
i
r
ement
,
t
hepar
t
ner
shi
p’
s“
netasset
s”was
:
a. P1
75,
000
b. P200,
000
c. P225,
000
d. P250,
000
[
57]
. Juan,Pedr
o,andPabl
oar
epar
t
ner
swhoshar
epr
of
i
t
sandl
ossesi
na5:
3:
2r
at
i
o
and,onJanuar
y1
,201
1
,havecapi
t
al
bal
ancesofP90,
000,P1
60,
000,andP200,
000,
r
espect
i
vel
y.Pabl
owi
t
hdr
ewf
r
om t
hepar
t
ner
shi
ponJul
y1
,201
1andt
hepar
t
ner
sagr
eed
t
hat
,asoft
hi
sdat
e,cer
t
ai
ni
nvent
or
yi
t
emswoul
dhavet
ober
eval
uedatP70,
000f
r
om t
hei
r
r
ecor
dedcostofP50,
000.Fort
hesi
xt
hmont
hper
i
odendi
ngJune30,201
1
,t
hepar
t
ner
shi
p
r
eal
i
zedaneti
ncomeofP1
30,
000.Thepar
t
ner
sdeci
dedt
hatPabl
oshoul
dbepai
d
P1
45,
000f
orhi
si
nt
er
estandt
her
emai
ni
ngpar
t
ner
s
’
capi
t
al
account
sshoul
ust
edf
or
anygoodwi
l
l
r
esul
t
i
ngf
r
om t
hes
et
t
l
ement
.Thepaymentt
oPabl
oi
ncl
udedgoodwi
l
l
of
:
a. P1
5,
000
c.P42,
500
b. P25,
000
d.P50,
000
[
58]
. Hugo,I
van,andJuni
ar
epar
t
ner
sshar
i
ngpr
of
i
t
sandl
ossesi
nt
her
espect
i
ver
at
i
o
of3:
3:
4.Juni
i
sgi
venper
mi
ssi
ont
or
et
i
r
eef
f
ect
i
veMay31
,201
1
,andi
twasagr
eedt
hat
set
t
l
ementi
st
her
emai
ni
ngpar
t
ner
smaki
ngpayment
sf
r
om t
hei
rper
sonal
f
unds.Thecapi
t
al
bal
ancesot
hi
sdat
ear
e P30,
000,P25,
000andP45,
000f
orHugo,I
van,
andJuni
,r
espect
i
vel
y.I
fJuni
r
ecei
vedP45,
000,howmuchdi
dHugopayJuni
?
a. P1
3,
500
b. P1
8,
000
c. P22,
500
d. P45,
000
[
59]
. Kar
en,Kar
mi
,andKat
hyar
epar
t
ner
sshar
i
ngpr
of
i
t
si
nt
her
espect
i
ver
at
i
oof2:
3:
5.
OnMay31
,201
1
,Kat
hyopt
edt
or
et
i
r
e.Thecapi
t
al
accountbal
ances,att
hi
st
i
me,ar
e
P95,
000,P1
40,
000,andP1
35,
000,r
espect
i
vel
y.Assumi
ngt
hatKat
hyi
spai
dP1
32,
000,
Kar
enwoul
dbecr
edi
t
ed:
a. P 600
b. P 857
c. P1
,
200
d. P1
,
800
[
60]
. ANA,MAE,andRAEshar
epar
t
ner
shi
ppr
of
i
t
sandl
ossesi
nt
her
at
i
oof2:
3:
5,
r
espect
i
vel
y.OnOct
ober31
,201
1
,RAEwasper
mi
t
t
edt
owi
t
hdr
awf
r
om t
hepar
t
ner
shi
pat
whi
cht
i
met
hei
rcapi
t
al
bal
anceswer
e:
Ana,capi
t
al
P25,
000
Mae,capi
t
al
40,
000
Rae,capi
t
al
35,
000
I
fRAEi
spai
dP39,
000i
nf
ul
l
paymentofheri
nt
er
est
,t
hecapi
t
al
ofANAi
mmedi
at
el
y
af
t
erRAE’
swi
t
hdr
awal
woul
dbe:
a. P22,
600
b. P23,
000
c. P23,
400
d. P26,
600
I
ncor
por
at
i
onofPar
t
ner
shi
p
[
61
]
. Thecondensedbal
ancesheetoft
hepar
t
ner
shi
pofKenSyandBenTyasof
December31
,201
1showedt
hef
ol
l
owi
ng:
Tot
al
asset
s
P200,
000
Tot
al
l
i
abi
l
i
t
i
es
40,
000
KenSy,capi
t
al
80,
000
BenTy,capi
t
al
80,
000
Ont
hi
sdat
e,t
hepar
t
ner
shi
pwasdi
ssol
vedandi
t
snetasset
swer
et
r
ansf
er
r
edt
oanewl
yf
or
medcor
por
at
i
on.Thef
ai
rval
ueoft
heasset
swasP24,
000mor
et
hant
hecar
r
yi
ngval
ue
oft
hef
i
r
m’
sbooks.Eachoft
hepar
t
ner
swasi
ssued1
0,
000shar
esoft
hecor
por
at
i
on’
sP1
parcommonst
ock.I
mmedi
at
el
yaf
t
eref
f
ect
i
ngt
het
r
ansf
eroft
henetasset
s,andt
he
i
ssuanceofst
ock,t
hecor
por
at
i
on’
t
i
onal
pai
di
ncapi
t
al
accountwoul
dbecr
edi
t
edf
or
:
a. P1
36,
000
b. P1
40,
000
c. P1
54,
000
d. P1
64,
000
[
62]
. Mac,Kuh,andNat
,par
t
ner
sshar
i
ngpr
of
i
t
sandl
ossesequal
l
y,deci
dedt
of
or
ma
cor
por
at
i
on.Theyhavecapi
t
al
bal
ances
,r
espect
i
vel
y,of
P1
00,
000,P1
00,
000,and
P200,
000,andal
l
oft
hei
rasset
sandl
i
abi
l
i
t
i
eswi
l
l
bet
r
ansf
er
r
edt
ot
hecor
por
at
i
on.Thei
rnet
asset
swi
l
l
ber
eval
uedf
r
om P400,
000t
oP550,
000,wi
t
ht
hesubst
ant
i
al
r
eval
uat
i
onduet
o
l
andwhi
chwasor
i
gi
nal
l
ycont
r
i
but
edbyNatatP1
00,
000.AtP1
0parval
ue,t
hepar
t
ner
sar
e
t
or
ecei
veshar
esofst
ockasf
ol
l
ows
:
a. 1
0,
000,1
0,
000,and35,
000,r
espect
i
vel
y
b. 1
2,
500,1
2,
500,and30,
000,r
espect
i
vel
y
c. 1
5,
000,1
5,
000,and25,
000,r
espect
i
vel
y
d. 1
8,
333,1
8,
333,and1
8,
334,r
espect
i
vel
y
[
63]
. Par
t
ner
sRobandRoy,whoshar
eequal
l
yi
npr
of
i
t
sandl
oses,havet
hef
ol
l
owi
ng
bal
ancesheetasofDecember31
,201
1
:
Cash
P1
20,
000 A/
Payabl
e
P1
72,
000
A/
r
ecei
vabl
e
1
00,
000 Accum.Dep’
n.
M/
I
nvent
or
y
1
40,
000 Rob,capi
t
al
1
40,
000
Equi
pment
80,
000 Roy,capi
t
al
1
20,
000
P440,
000 Tot
al
equi
t
i
es
P440,
000
Tot
al
8,
000
Theyagr
eedt
oi
ncor
por
at
et
hei
rpar
t
ner
shi
p,wi
t
ht
henewcor
por
at
i
onabsor
bi
ngt
he
netasset
saf
t
ert
hef
ol
l
owi
ust
ment
s
:pr
ovi
si
onofal
l
owancef
sofP1
0,
000;
st
at
ementoft
hei
nvent
or
yati
t
scur
r
entf
ai
rval
ueofP1
60,
000;and,r
ecogni
t
i
onoff
ur
t
her
depr
eci
at
i
onont
heequi
pmentofP3,
000.Thecor
por
at
i
on’
scapi
t
al
st
ocki
st
ohaveapar
val
ueofP1
00,andt
hepar
t
ner
sar
et
obei
ssuedcor
r
espondi
ngt
ot
al
shar
esequi
val
entt
o
t
hei
us
t
edcapi
t
al
bal
ances.
Thet
ot
al
parval
ueoft
heshar
esofcapi
t
al
st
ockt
hatwer
ei
ssuedt
opar
t
ner
sRobandRoy
was:
a. P260,
000
b. P267,
000
c. P273,
000
d. P280,
000
Par
t
ner
shi
pLi
qui
dat
i
on(
Lumpsum &amp;I
nst
al
l
ment
)
[
65]
. Gar
doandGor
dof
or
medapar
t
ner
shi
ponJul
y1
,201
1t
ooper
at
et
wost
or
est
obe
managedbyeachoft
hem.Theyi
nvest
edP30,
000andP20,
000andagr
eedt
oshar
e
ear
ni
ngs60% and40% r
espect
i
vel
y.Al
l
t
hei
rt
r
ansact
i
onswer
ef
orcash,andal
l
t
hei
r
subsequentt
r
ansact
i
onswer
ehandl
edt
hr
ought
hei
rr
espect
i
vebankaccount
sas
summar
i
zedbel
ow:
Gar
do
Cashr
ecei
pt
s
Cashdi
sbur
sement
s
Gor
do
P79,
1
00
P65,
245
62,
275
70,
695
OnOct
ober31
,201
1
,al
l
r
emai
ni
ngnoncashasset
si
nt
het
wost
or
eswer
esol
df
orcashof
P60,
000.Thepar
t
ner
shi
pwasdi
ssol
ved,andcashset
t
l
ementwasef
f
ect
ed.I
nt
he
di
st
r
i
but
i
onoft
heP60,
000cash,Gar
dor
ecei
ved
a. P24,
000
b. P26,
000
c. P34,
000
d. P36,
000
[
66]
. Thepar
t
nerAA,Bi
da,Ci
t
a,andDi
na,whoshar
epr
of
i
t
sandl
ossesi
nt
her
espect
i
ve
r
at
i
oof3:
3:
2:
2,deci
dedt
ol
i
qui
dat
et
hei
rpar
t
ner
shi
p.Justpr
i
ort
ol
i
qui
dat
i
on,t
heypr
epar
ed
t
hef
ol
l
owi
ngsummar
ybal
ancesheet
:
Cash
Ot
herasset
s
P 1
00,
000
Li
abi
l
i
t
i
es
1
,
800,
000
Bi
da,l
oan
Di
na,l
oan
P 750,
000
1
60,
000
50,
000
AA,capi
t
al
420,
000
Bi
da,capi
t
al
21
5,
000
Tot
al
Ci
t
a,capi
t
al
205,
000
Di
na,capi
t
al
1
00,
000
P1
,
900,
000
Tot
al
P1
,
900,
000
Thenoncashasset
sr
eal
i
zedP800,
000.I
fal
l
t
hepar
t
ner
sar
eper
sonal
l
ysol
vent
,
def
i
ci
ency/
def
i
ci
enci
es
,r
esul
t
i
ngf
r
om t
hel
i
qui
dat
i
onpr
ocess,wi
l
l
r
equi
r
t
i
onal
cash
f
r
om:
a. Bi
daatP85,
000andDi
naatP1
00,
000
b. Bi
daatP85,
000
c. Di
naatP50,
000
d. Noneoft
heabove
[
67]
. Thebal
ancesheetoft
hepar
t
ner
shi
pofSal
ve,Gi
l
da,andNor
a,whoshar
epr
of
i
t
s
andl
ossesi
nt
her
espect
i
ver
at
i
oof5:
3:
2,f
ol
l
ows
:
Asset
s
Cash
Ot
herasset
s
Tot
al
Li
abi
l
i
t
i
esandCapi
t
al
P 30,
000
320,
000
Li
abi
l
i
t
i
es
P 50,
000
Sal
ve,capi
t
al
80,
000
Gi
l
da,capi
t
al
1
1
5,
000
Nor
a,capi
t
al
05,
000
P350,
000
P350,
000
Thepar
t
ner
sagr
eedt
ol
i
qui
dat
et
hepar
t
ner
shi
pbyi
nst
al
l
ment
s.I
mmedi
at
el
yt
her
ewasa
r
eal
i
zat
i
onofP1
00,
000cashf
r
om sel
l
i
ngot
herasset
swi
t
habookval
ueofP1
50,
000.Oft
he
cashavai
l
abl
e,t
hepr
i
or
i
t
yi
st
hepaymentoft
hel
i
abi
l
i
t
i
esandt
hebal
ancei
st
obedi
st
r
i
but
ed
t
ot
hepar
t
ner
s.
Howshoul
dt
her
emai
ni
ngcashbedi
st
r
i
but
ed.
a. Sal
ve,P50,
000;Gi
l
da,P30,
000;and,Nor
a,P20,
000.
b. Sal
ve,P40,
000;Gi
l
da,P24,
000;and,Nor
a,P1
6,
000.
c. Sal
ve,P0;Gi
l
da,P31
,
000;and,Nor
a,P49,
000.
d. Sal
ve,P0;Gi
l
da,P48,
000;and,Nor
a,P32,
000.
Quest
i
ons68t
hr
ough70ar
ebasedont
hef
ol
l
owi
ngdat
af
r
om t
her
ecor
dsofABC
Par
t
ner
shi
p:
ABCPar
t
ner
shi
p
Bal
anceSheet
December31
,201
0
Ass
et
s
Cash
P 2,
000
Ot
herNoncashAsset
s
Tot
al
28,
000
P30,
000
Li
abi
l
i
t
i
es&amp;NetWor
t
h
Li
abi
l
i
t
i
es
P 5,
000
A,l
oan
2,
500
A,capi
t
al
1
2,
500
B,capi
t
al
7,
000
C,capi
t
al
3,
000
Tot
al
P 30,
000
Pr
of
i
tandl
ossr
at
i
oi
s3:
2:
1f
orA,B,andC,r
espect
i
vel
y.Theot
hernoncashasset
swer
e
r
eal
i
zedasf
ol
l
ows:
Dat
e
CashRecei
ved
BookVal
ue
Jan.,201
1
P 6,
000
P 9,
000
Feb.
,201
1
3,
500
7,
700
Mar
.
,201
1
1
2,
500
1
1
,
300
Cashi
sdi
st
r
i
but
edasasset
sar
er
eal
i
zed.
[
68]
.
Thet
ot
al
l
osst
oAi
s
a. P3,
000
b. P2,
000
c. P1
,
000
d. P0
[
69]
.
Thet
ot
al
cashr
ecei
vedbyBi
s:
a. P2,
200
b. P0
c. P5,
000
d. P1
,
500
[
70]
.
Cashr
ecei
vedbyCi
nJanuar
yi
s:
a. P 200
b. P1
,
000
c. P 500
d. P0
[
71
]
. X,YandZhavecapi
t
al
bal
ancesofP40,
000,P50,
000,andP1
8,
000andapr
of
i
t
shar
i
ngr
at
i
oof4:
2:
1
,r
espect
i
vel
y.I
fXr
ecei
vedP8,
000uponl
i
qui
dat
i
onoft
hepar
t
ner
shi
p,
t
het
ot
al
amountr
ecei
vedbyal
l
t
hepar
t
ner
swas
:
a. P1
08,
000
b. P 56,
000
c. P 52,
000
d. P 24,
000
[
72]
. Ass
umet
hesamef
act
sabove,exceptt
hatXr
ecei
vedP26,
000asar
esul
toft
he
l
i
qui
dat
i
on.Zr
ecei
ved,aspar
toft
hel
i
qui
dat
i
on,t
heamountof
:
a. P26,
000
b. P1
4,
500
c. P1
8,
000
d. P1
4,
000
[
73]
. SanchezandTanar
epar
t
ner
sshar
i
ngpr
of
i
t
sequal
l
yandwi
t
hcapi
t
al
bal
ances,
r
espect
i
vel
y,ofP750,
000andP500,
000.Thef
i
r
m owesTanP200,
000,asevi
dencedbya
pr
omi
ssor
ynot
e.Uponl
i
qui
dat
i
on,cashofP300,
000becomesavai
l
abl
ef
ordi
st
r
i
but
i
ont
o
t
hepar
t
ner
s.I
nt
hef
i
nal
cashdi
st
r
i
but
i
on,t
her
espect
i
veshar
esofSanchezandTanwi
l
l
be:
a. P1
50,
000 andP1
50,
000
b. P1
75,
000andP1
25,
000
c. P200,
000andP1
00,
000
d. P275,
000andP 25,
000
[
74]
. Af
t
eroper
at
i
ngf
orf
i
veyear
s
,t
hepar
t
ner
shi
pofRemyandMar
t
i
n,whoshar
e
pr
of
i
t
sandl
osesequal
l
ancesasf
ol
l
ows
:
Netasset
s
P1
30,
000
Remy,capi
t
al
85,
000
Mar
t
i
n,capi
t
al
45,
000
I
fl
i
qui
dat
i
ont
akespl
aceatt
hi
st
i
meandt
heasset
sar
er
eal
i
zedatbookval
ue,Remyand
Mar
t
i
nwoul
dbeent
i
t
l
edt
or
ecei
ve:
a. P65,
000andP65,
000,r
espect
i
vel
y.
b. P85,
000andP45,
000,r
espect
i
vel
y.
c. P90,
000andP40,
000,r
espect
i
vel
y.
d. P97,
500andP32,
500,r
espect
i
vel
y.
[
75]
.
Thecondensedbal
ancesheetofAl
ex,JayandJohn,asofMar
ch31
,201
1f
ol
l
ows:
Cash
Ot
herasset
s
P 28,
000
265,
000
Li
abi
l
i
t
i
es
Al
ex,capi
t
al
Jay,capi
t
al
John,capi
t
al
Tot
al
asset
s
P293,
000
P 48,
000
95,
000
80,
000
70,
000
Tot
al
equi
t
i
es P293,
000
Thei
ncomeandl
ossr
at
i
oi
s50:
25:
25,r
espect
i
vel
y.Thepar
t
ner
svot
edt
odi
ssol
vet
hei
r
par
t
ner
shi
pandl
i
qui
dat
ebysel
l
i
ngt
heot
herasset
si
ni
nst
al
l
ment
s.TheamountofP70,
000
wasr
eal
i
zedt
ot
hef
i
r
stcashsal
eofot
herasset
swi
t
habookval
ueofP1
50,
000.Af
t
er
set
t
l
ementwi
t
hcr
edi
t
or
sal
l
cashavai
l
abl
ewasdi
st
r
i
but
edt
ot
hepar
t
ner
s.Howmuchwas
r
ecei
vedbyJohni
nt
hecashdi
st
r
i
but
i
on?
a. P30,
000
c.P21
,
250
b. P20,
000
d.P31
,
250
[
76]
. Jo,Lee,andVi
ar
epar
t
ner
sshar
i
ngpr
of
i
t
s30%,20%,and50%,andwi
t
hcapi
t
al
bal
ancesofP350,
000,P250,
000,andP350,
000,r
espect
i
vel
y.Thepar
t
ner
sagr
eedt
o
di
ssol
vet
hei
rpar
t
ner
shi
pand,uponl
i
qui
dat
i
on,al
l
oft
hepar
t
ner
shi
p’
sass
et
sar
esol
dand
suf
f
i
ci
entcashi
sr
eal
i
zedt
opayal
l
cl
ai
msexceptonef
orP50,
000.Vi
i
sper
sonal
l
yi
nsol
vent
,
butt
heot
hert
wopar
t
ner
sar
ecapabl
eofmeet
i
nganyi
ndebt
ednessoft
hef
i
r
m.Oft
he
r
emai
ni
ngcl
ai
m agai
nstt
hef
i
r
m,Joi
st
oabsor
b:
a. P1
5,
000
b. P25,
000
c. P30,
000
d. P40,
000
[
77]
. OnOct
ober31
,201
1
,I
vy,I
r
ma,andI
r
ene,whoshar
eear
ni
ngs5:
3:
2r
espect
i
vel
y,
deci
dedt
ol
i
qui
dat
et
hei
rpar
t
ner
shi
patwhi
cht
i
met
hei
rcondensedbal
ancesheetwasas
f
ol
l
ows:
Cash
Ot
herasset
s
Tot
al
asset
s
P 50,
000
Li
abi
l
i
t
i
es
250,
000 I
vy,capi
t
al
P300,
000
P 60,
000
80,
000
I
r
ma,capi
t
al
90,
000
I
r
ene,capi
t
al
70,
000
Tot
al
equi
t
i
es P300,
000
I
ft
hef
i
r
stcashsal
eofasset
sbookedatP1
50,
000r
esul
t
edi
nnetr
eal
i
zat
i
onofP1
20,
000,
t
heamountt
obedi
st
r
i
but
edt
oI
r
enewoul
dbe:
a. P1
5,
000
b. P44,
000
c. P51
,
000
d. P60,
000
[
l
xxvi
i
i
]
. Dan,El
y,andFi
l
deci
dedt
odi
ssol
vet
hei
rpar
t
ner
shi
ponMay31
,201
1
.Ont
hi
s
dat
e,t
hei
rcapi
t
al
bal
ancesandpr
of
i
t
shar
i
ngpercent
swer
easf
ol
l
ows:
Dan
P50,
000
40%
El
y
60,
000
30%
Fi
l
20,
000
30%
Theneti
ncomef
r
om Januar
y1t
oMay31
,201
1wasP44,
000.Al
soonMay31
,201
1
,t
he
par
t
ner
shi
p’
scashandl
i
abi
l
i
t
i
es,r
espect
i
vel
ywer
eP40,
000andP90,
000.ForDant
o
r
ecei
veP55,
200i
nf
ul
l
set
t
l
ementofhi
si
nt
er
esti
nt
hepar
t
ner
shi
p,howmuchmustbe
r
eal
i
zedf
r
om t
hesal
eoft
hepar
t
ner
shi
p’
snoncashasset
s?
a. P1
77,
000
b. P1
87,
000
c. P1
90,
000
d. P1
93,
000
[
l
xxi
x]
. Bach,Li
zst
,andSt
r
auss
,shar
i
ngpr
of
i
t
sandl
osses4:
4:
2,deci
dedt
ol
i
qui
dat
et
hei
r
par
t
ner
shi
p.Justpr
i
ort
ol
i
qui
dat
i
on,t
hepar
t
ner
shi
p’
scondensedbal
ancesheetwasas
f
ol
l
ows:
Cash
P1
00,
000 Li
abi
l
i
t
i
es
Ot
herasset
s
Tot
al
400,
000
Bach,l
oan
P1
40,
000
1
0,
000
Bach,capi
t
al
45,
000
Li
zst
,capi
t
al
1
05,
000
St
r
auss
,capi
t
al
200,
000
P500,
000 Tot
al
P500,
000
Theot
herasset
swer
esol
df
orP247,
500,andt
hepar
t
ner
sagr
eedt
t
i
onal
cash
cont
r
i
but
i
onst
oranycapi
t
al
def
i
ci
ency.I
dent
i
f
yt
hedef
i
ci
entpar
t
ner
,andi
ndi
cat
e
hi
t
i
onal
cashcont
r
i
but
i
ont
of
i
nal
l
yl
i
qui
dat
et
hepar
t
ner
shi
p:
a. Bach,P 6,
000
b. Bach,P1
6,
000
c. Li
zst
,P30,
500
d. St
r
auss,P44,
000
[
l
xxx]
. Tom,Umi
andVi
cdeci
dedt
odi
ssol
vet
hei
rpar
t
ner
shi
ponMay31
,201
1
.Ont
hi
s
dat
e,t
hei
rcapi
t
al
bal
anceswer
easf
ol
l
ows
:
Tom
P50,
000
40%
Umi
60,
000
30%
Vi
c
20,
000
30%
Theneti
ncomef
r
om Januar
y1t
oMay31
,201
1wasP44,
000.Al
soonMay31
,201
1
,t
he
par
t
ner
shi
p’
scashandl
i
abi
l
i
t
i
es,r
espect
i
vel
ywer
eP40,
000andP90,
000.Whatwast
he
bookval
ueoft
hepar
t
ner
s
hi
p’
snoncashasset
sonMay31
,201
1
?
a. P1
80,
000
b. P1
90,
000
c. P220,
000
d. P224,
000
END-
[
1
]
.
Let
t
er“
B”i
st
hecor
r
.
Thepr
obl
em i
mpl
i
est
hatt
hecont
r
i
but
i
onofEmi
l
i
sal
r
et
oent
i
t
l
ehi
mt
oa60%
shar
ei
nt
het
ot
alagr
eedcapi
t
aloft
hepar
t
ner
shi
p.Hence,t
het
ot
alagr
eedcapi
t
al
i
zat
i
on
shal
l
bebasedonhi
scont
r
i
but
i
onofP300,
000orP500,
000(
P300,
000&divide;60%)
.Theagr
eed
capi
t
al
ofPear
l
i
s40% ofP500,
000orP200,
000andhercashcont
r
i
but
i
onshal
l
beequal
t
o
t
hedi
f
f
er
encebet
weent
hi
samount(
P200,
000)andt
henetf
ai
rval
ueoft
henoncashasset
s
shei
nvest
ed.Thenetf
ai
rval
ueoft
heot
herasset
scont
r
i
but
edbyPear
l
i
sequal
t
oP1
20,
000,
(
P70,
000 + P90,
000 – P40,
000)
.Ther
ef
or
e,hercash cont
r
i
but
i
on shoul
d be equalt
o
P80,
000(
P200,
000–P1
20,
000)
.
[
2]
.
Let
t
er“
D”i
st
hecor
r
.
Undert
he goodwi
l
lmet
hod,t
he t
ot
alagr
eed capi
t
alshoul
d be mor
et
han t
he t
ot
al
cont
r
i
but
edcapi
t
al
.Tot
al
agr
eedcapi
t
al
wi
l
l
bemor
et
hant
het
ot
al
cont
r
i
but
edcapi
t
al
onl
yi
f
t
hecont
r
i
but
i
onofGr
eeni
susedast
hebasi
soft
het
ot
alagr
eedcapi
t
al
i
zat
i
on.Si
ncet
he
f
ai
rval
ueoft
hecont
r
i
but
i
onofGr
eenamount
st
oP60,
000,t
hent
het
ot
alagr
eedcapi
t
al
mustbeP1
20,
000 (
P60,
000 &cedil;50%)
. Thei
ni
t
i
alcapi
t
alofRed t
her
ef
or
eamount
ed t
o
P60,
000or50% ofP1
20,
000asagr
eedbyt
hepar
t
ner
s.
[
3]
.
Let
t
er“
B”i
st
hecor
r
.
Theamountt
ober
ecor
dedascapi
t
aloft
hepar
t
ner
sshoul
dbebasedont
hef
ai
rval
ueof
t
henetasset(
t
ot
alasset
s–t
ot
all
i
abi
l
i
t
i
es)cont
r
i
but
edbyeachoft
hem.Hence,t
hecapi
t
al
bal
ancesf
orPi
r
ant
eandWi
l
sonshoul
dbeP70,
000andP1
50,
000,r
espect
i
vel
y. These
amount
sar
ecomput
edasf
ol
l
ows:
Pi
r
ant
e
Wi
l
son
Asset
scont
r
i
but
ed:
Cash
P40,
000
P 60,
000
I
nvent
or
y
-
30,
000
Bui
l
di
ng
-
80,
000
Fur
ni
t
ur
eandEqui
pment
Tot
al
P70,
000
Lessmor
t
gageassumed
Netasset
scont
r
i
but
ed
[
4]
.
30,
000
-
P1
70,
000
-
20,
000
P70,
000
P1
50,
000
Let
t
er“
B”i
st
hecor
r
.
Undert
hebonusmet
hod,apor
t
i
onoft
hecapi
t
alofonepar
t
neri
st
r
ansf
er
r
edt
oanot
her
par
t
ner
.I
nt
hi
scase,t
het
ot
alagr
eedcapi
t
ali
sassumedt
obeequalt
ot
het
ot
alcont
r
i
but
ed
capi
t
al
,P276,
000 (
P1
50,
000 + P1
26,
000)
,and eachpar
t
nershal
lbecr
edi
t
ed onehal
f
(
accor
di
ngt
oagr
eement
)orP1
38,
000.Thepar
t
nerwhocont
r
i
but
edmor
et
hanhi
sagr
eed
capi
t
alcr
edi
ti
st
heonewhogaveabonuswhi
l
et
heonewhocont
r
i
but
edcapi
t
all
esst
han
hi
sagr
eed capi
t
alcr
edi
ti
st
he one who r
ecei
ved i
t
. Bel
en cont
r
i
but
ed P1
26,
000 but
r
ecei
vedP1
38,
000(
50% xP276,
000)capi
t
alcr
edi
t
,hence,her
ecei
vedbonusequalt
o
P1
2,
000 (
P1
38,
000P1
26,
000)f
r
om AA who cont
r
i
but
ed P1
50,
000 butr
ecei
ved onl
y
P1
38,
000capi
t
al
cr
edi
t
.
[
5]
.
Let
t
er“
B”i
st
hecor
r
.
Thepar
t
ner
s’capi
t
albal
ancesuponf
or
mat
i
onwoul
dbeP1
00,
000,P1
0,
000,and
P1
00,
000,r
espect
i
vel
y.
[
6]
.
Let
t
er“
C”i
st
hecor
r
.
Kat
hy’
scapi
t
alaccountshoul
dbecr
edi
t
edf
ort
he50% oft
het
ot
alagr
eedcapi
t
alwhi
chi
s
assumedt
obeequalt
ot
heact
ualcapi
t
alcont
r
i
but
edbyt
hepar
t
ner
sorP1
84,
000[
50% x
(
P200,
000+P1
68,
000)
]
[
7]
.
Let
t
er“
C”i
st
hecor
r
.
Thepar
t
nerwi
t
ht
hebi
ggestcapi
t
al
accountbal
anceasofMay31
,201
1i
sCi
p,comput
edas
f
ol
l
ows:
Al
l
en
Cash
P50,
000
Noncashasset
Bel
en
Cenen
P -
P-
-
80,
000
Mor
t
gage
-
(
35,
000)
Capi
t
al
accountbal
ances
P50,
000
55,
000
-
P45,
000
P55,
000
Eachpar
t
nerval
ueshi
scont
r
i
but
i
onati
sf
ai
rval
ue,r
educedbyt
heamountofany
l
i
abi
l
i
t
yassumedbyt
hepar
t
ner
shi
p.
[
8]
.
Let
t
er“
D”i
st
hecor
r
.
Undert
he bonusmet
hod,goodwi
l
li
snotr
ecogni
zed;t
hus,t
her
e woul
d be no
uni
dent
i
f
i
abl
eassett
ober
ecor
ded.
[
9]
.
Let
t
er“
C”i
st
hecor
r
.
Theamountofcashcont
r
i
but
edbyCar
l
a,i
fi
ni
t
i
albal
ancesar
et
oconf
or
mt
ot
he
pr
of
i
t
shar
i
ngr
at
i
oof2:
3,r
espect
i
vel
ywasP40,
000,comput
edasf
ol
l
ows:
Capi
t
al
cont
r
i
but
edbyCl
ar
a:
Mer
chandi
seatf
ai
rval
ue
P25,
000
Del
i
ver
yt
r
uckatf
ai
rval
ue
50,
000
Mor
t
gagenot
epayabl
eassumed
(1
5,
000)
Cl
ar
a’
scont
r
i
but
i
on
Di
vi
dedbypr
of
i
tshar
eofCl
ar
a
P60,
000
3/
5
Tot
al
agr
eedcapi
t
al
P1
00,
000
Mul
t
i
pl
i
edbyCar
l
a’
spr
of
i
tshar
er
at
i
o
2/
5
Car
l
a’
scashcont
r
i
but
i
on
[
1
0]
.
P40,
000
Let
t
er“
B”i
st
hecor
r
.
Uponf
or
mat
i
on,t
henetasset
soft
hepar
t
ner
shi
pi
sequalt
ot
het
ot
alf
ai
rval
ueoft
he
asset
scont
r
i
but
edl
essanyamountofl
i
abi
l
i
t
i
esassumedbyt
hepar
t
ner
shi
p,hencet
henet
asset
soft
hepar
t
ner
shi
pi
sequal
t
oP,comput
edasf
ol
l
ows:
Asset
scont
r
i
but
edby:
AA
P1
00,
000
BB
1
0,
000
CC
1
00,
000
Tot
al
P21
0,
000
Lessl
i
abi
l
i
t
i
esassumed
1
0,
000
Netasset
scont
r
i
but
edbyt
hepar
t
ner
s
[
1
1
]
.
P200,
000
Let
t
er“
B”i
st
hecor
r
.
Thecapi
t
albal
anceofMeland Gar
r
iassumi
ng t
heyagr
eet
o shar
et
hei
rcapi
t
al
equal
l
ywoul
dbeP72,
500,comput
edasf
ol
l
ows:
ust
edcapi
t
al
(
P78,
500+P70,
000)
I
nvent
or
ywr
i
t
eup
P1
48,
500
3,
000
Al
l
ow.f
s(
P1
,
000+P1
,
500)
I
ncr
easei
naccount
spayabl
e
ust
edcapi
t
al
(
4,
000)
P1
45,
000
Di
vi
deby
Capi
t
al
bal
anceofeachpar
t
ner
[
1
2]
.
Let
t
er“
C”i
st
hecor
r
.
2
P72,
500
(2,
500)
I
fChona i
s al
l
owed goodwi
l
lcr
edi
tequalt
o 20% ofheri
ni
t
i
alcapi
t
al
,Char
o’
s cash
cont
r
i
but
i
onwasP25,
000,comput
edasf
ol
l
ows:
Chona’
si
ni
t
i
al
capi
t
al
(
P60,
000/
80%)
P 75,
000
Di
vi
dedbyChona’
scapi
t
al
shar
e
&frac34; or75%
Tot
al
agr
eedcapi
t
al
oft
hepar
t
ner
s
P1
00,
000
Mul
t
i
pl
i
edbyChona’
scapi
t
al
shar
e
&frac14; or25%
Char
o’
scashcont
r
i
but
i
on
P 25,
000
Chona’
si
ni
t
i
alcapi
t
ali
sequalt
ohernetasset
scont
r
i
but
i
onwhi
chi
s80% pl
ushergoodwi
l
l
cr
edi
tof20%.Char
o’
scashcont
r
i
but
i
oni
sequalt
oonef
our
t
h(
&frac14;)oft
ot
alpar
t
ner
shi
p
capi
t
al
or1
/
3ofChona’
scapi
t
al
.
[
1
3]
.
Let
t
er“
B”i
st
hecor
r
.
The capi
t
albal
ances oft
he par
t
ner
s upon f
or
mat
i
on ar
e P1
80,
000,P1
92,
000,and
P204,
000,r
espect
i
vel
y,comput
edasf
ol
l
ows:
I
nvest
ment
s:
Cash
Fl
or
es
P1
20,
000
Equi
pment
Per
al
t
a
Jose
P1
92,
000
P 60,
000
60,
000
Tr
uck
1
44,
000
Capi
t
al
bal
ances
[
1
4]
.
P1
80,
000
P1
92,
000
P204,
000
Let
t
er“
B”i
st
hecor
r
.
EJ’
ust
edcapi
t
al
bal
ancei
sP80,
000comput
edasf
ol
l
ows:
EJ’
scapi
t
al
bef
or
ust
ment(
gi
ven)
P78,
500
deduct
ust
mentf
or
:
Al
l
owancef
ordoubt
f
ul
account
s
P(
1
,
500)
I
nvent
or
yi
ncr
ease
3,
000
ust
ment
EJ’
ust
edcapi
t
al
bal
ance
[
1
5]
.
1
,
500
P80,
000
Let
t
er“
A”i
st
hecor
r
.
Noncashasset
scont
r
i
but
edt
oanent
i
t
yshoul
dber
ecor
dedatf
ai
rmar
ketval
ueatt
hedat
e
ofcont
r
i
but
i
on.Thecr
eat
i
onofanewent
i
t
ycr
eat
esanewaccount
abi
l
i
t
yf
ort
heseasset
s.
[
1
6]
.
Let
t
er“
C”i
st
hecor
r
.
Thecapi
t
alaccountofPul
aandPut
ii
mmedi
at
el
yaf
t
ert
hef
or
mat
i
onoft
hepar
t
ner
shi
p
woul
dhavebal
ancesequalt
oP287,
070andP1
23,
030,r
espect
i
vel
y.Theseamount
swer
e
comput
edasf
ol
l
ows:
Capi
t
al
ofPul
abef
or
ust
ment
s
P300,
000
deduct
ust
ment
s:
I
ncr
easei
ndepr
eci
at
i
on
Reduct
i
oni
npr
epai
dexpenses
ust
edcapi
t
al
ofPul
a
r
i
but
edbyPut
i
Tot
al
agr
eedcapi
t
al
(
7,
500)
(
2,
400)
P290,
1
00
1
20,
000
P41
0,
1
00
Shar
eofPul
a(
70% xP41
0,
1
00)
P287,
070
Shar
eofPut
i
(
30% xP41
0,
1
00)
P1
23,
030
[
1
7]
.
Let
t
er“
D”i
st
hecor
r
.
Thecapi
t
alcont
r
i
but
edbyFebi
sP280,
000(
P70,
000+P75,
000+P225,
000–P90,
000)
,
t
het
ot
alagr
eedcapi
t
ali
st
her
ef
or
eequalt
oP400,
000(
P280,
000/
70%)
,30% ofwhi
chor
P1
20,
000 shoul
d be cr
edi
t
ed t
o Jhan. Si
nce hi
si
ni
t
i
alcapi
t
alcont
r
i
but
i
on i
sP65,
000
(
P30,
000+P25,
000+1
0,
000)onl
y,heneedst
oi
nvestP55,
000mor
e(
P1
20,
000P65,
000)
.
[
1
8]
.
Let
t
er“
A”i
st
hecor
r
.
Par
t
ner
s’capi
t
albal
ancesuponf
or
mat
i
onar
eBel
,P75,
000;Joy,P80,
000,andFr
anco,
P85,
000,r
espect
i
vel
y,comput
edasf
ol
l
ows:
Bel
Joy
Fr
anco
Cash
P50,
000
P80,
000
P25,
000
Noncashasset
s
25,
000
-----60,
000
I
ni
t
i
al
capi
t
al
bal
ances
P75,
000
P80,
000
P85,
000
[
1
9]
.
Let
t
er“
B”i
st
hecor
r
.
I
fJi
menezi
st
oi
nvestcashf
ora2/
5i
nt
er
esti
nt
hepar
t
ner
shi
p,i
tmeanst
hatt
ust
ed
capi
t
alofMar
ki
s3/
5oft
het
ot
alagr
eedcapi
t
al
ust
edcapi
t
alofMar
ki
scomput
ed
asf
ol
l
ows:
Capi
t
al
bef
or
ust
ment
s(
Subcomput
at
i
ona)
ust
ment
s(
Subcomput
at
i
onb)
ust
edCapi
t
al
ofMar
k
21
,
000
P285,
000
Subcomput
at
i
ona:
Cash
P264,
000
P26,
000
Account
sr
ecei
vabl
e
I
nvent
or
y
1
20,
000
1
80,
000
Account
spayabl
e
(
62,
000)
ust
edCapi
t
al
ofMar
k
P264,
000
Subcomput
at
i
onb:
Al
l
owancef
ordoubt
f
ul
account
s[
3% xP1
20,
000]
(
P3,
600)
I
ncr
easei
nmer
chandi
sei
nvent
or
y
25,
000
Recogni
t
i
onofPr
epai
dexpens
es
3,
600
Recor
di
ngofaccr
uedexpenses
(
4,
000)
ust
mentt
ocapi
t
al
ofMar
k
P21
,
000
Tot
alagr
eed capi
t
ali
st
her
ef
or
e equalt
o P475,
000 (
P285,
000 &divide; 3/
5)
,2/
5 oft
hi
sor
P1
90,
000(
P475,
000x2/
5)bel
ongst
oJi
menezwhi
chheagr
eedt
opr
ovi
def
ori
ncash.
[
20]
.
Let
t
er“
D”i
st
hecor
r
.
Thet
ot
al
asset
soft
hepar
t
ner
shi
pi
sequal
t
oP74,
000,comput
edasf
ol
l
ows:
Cash(
P2,
500+P20,
000)
P22,
500
Account
sr
ecei
vabl
e(
P1
0,
000–P500)
9,
500
Mer
chandi
seI
nvent
or
y:
(
P1
5,
000–P3,
000+P1
0,
000)
Fi
xt
ur
es(
f
ai
rmar
ketval
ue)
Tot
al
asset
s
21
]
.
22,
000
20,
000
P74,
000
Let
t
er“
B”i
st
hecor
r
.
ust
edcapi
t
al
ofSi
l
vanoi
sP1
1
6,
250,comput
edasf
ol
l
ows:
Tot
al
Asset
s(
comput
at
i
ona)
Lessaccount
spayabl
e(
gi
ven)
Capi
t
al
bef
or
ust
ment
s
P1
32,
000
8,
000
P1
24,
000
ust
ment
s(
comput
at
i
onb)
7,
750
ust
edcapi
t
al
ofSi
l
vano
P1
1
6,
250
Comput
at
i
ona:
Cash
P 30,
000
Account
sr
ecei
vabl
e
25,
000
I
nvent
or
y
45,
000
Fur
ni
t
ur
e
32,
000
Tot
al
asset
s
P1
32,
000
Comput
at
i
onb:
Pr
ovi
si
onf
s(
3% xP25,
000)
P 750
Reduct
i
oni
nt
heval
ueoff
ur
ni
t
ur
e:
(
P32,
000–27,
000)
5,
000
Decr
easei
nt
heval
ueofi
nvent
or
y:
(
P5,
000–3,
000)
ust
ment
s
[
22]
.
2,
000
P7,
750
Let
t
er“
D”i
st
hecor
r
.
Thet
ot
al
asset
soft
henewpar
t
ner
shi
pi
sequal
t
oP1
44,
250,comput
edasf
ol
l
ows:
ust
edcapi
t
al
ofSi
l
vano
spayabl
e
Tot
al
ust
edasset
s
nvest
mentofPegasus
Tot
al
asset
soft
henewpar
t
ner
shi
p
[
23]
.
P1
1
6,
250
8,
000
P1
24,
250
20,
000
P1
44,
250
Let
t
er“
A”i
st
hecor
r
.
Becausegai
ni
st
oi
nvestcashasi
def
r
om P50,
000wor
t
hofmer
chandi
sei
ti
sassumed t
hat
t
ust
edcapi
t
al
ofPai
ni
sequal
t
ohi
s2/
3capi
t
al
shar
e(1l
ess1
/
3agr
eedshar
eofGai
n)
.
Hence,t
ocomput
et
het
ot
alagr
eedcapi
t
aloft
hepar
t
ner
shi
paswel
last
hecasht
obe
i
nvest
edbyGai
n,Pai
n’
ust
edcapi
t
alshoul
dbecomput
edf
i
r
st
ust
edcapi
t
alof
Pai
ni
sequal
t
oP1
65,
900,comput
edasf
ol
l
ows:
Capi
t
al
bef
or
ust
ment
s(
gi
ven)
P1
58,
400
ust
ment(
comput
at
i
ona)
ust
edcapi
t
al
ofPai
n
7,
500
P1
65,
900
Comput
at
i
ona:
I
ncr
easei
ncapi
t
al
duet
or
ec.ofpr
epai
dexp.
Decr
easei
ncapi
t
al
duet
or
ec.ofaccr
ual
Decr
easei
ncapi
t
al
duet
opr
ovi
si
onsf
s
ust
mentt
ocapi
t
al
ofPai
n
P1
7,
500
(
5,
000)
(
5,
000)
P 7,
500
Thet
ot
alagr
eedcapi
t
aloft
hepar
t
ner
shi
pi
sP248,
850(
P1
65,
900&divide;2/
3)
,andt
hecapi
t
al
shar
eofgai
ni
sP82,
950(
P248,
850x1
/
3)
,hence,t
hecasht
obei
nvest
edbyGai
ni
sequal
t
oP32,
950(
P82,
950–P50,
000)
.
[
24]
.
Let
t
er“
A”i
st
hecor
r
.
Noncashasset
scont
r
i
but
edt
ot
hepar
t
ner
shi
pshoul
dber
ecor
dedatf
ai
rmar
ketval
ueat
t
hedat
eofcont
r
i
but
i
on.Thef
actt
hatt
hecomput
erwassol
df
orP55,
000i
mmedi
at
el
yaf
t
er
t
hef
or
mat
i
onoft
hepar
t
ner
shi
pi
ndi
cat
est
hati
ti
si
t
sf
ai
rmar
ketval
ueont
hedat
eoft
he
f
or
mat
i
onoft
hepar
t
ner
shi
p.
[
25]
.
Let
t
er“
B”i
st
hecor
r
.
Theamountofasset
st
obecont
r
i
but
edbyVi
ol
ett
ohaveaonet
hi
r
di
nt
er
esti
ncapi
t
aland
pr
of
i
tshoul
dbeequalt
oonehal
foft
hecombi
nedcont
r
i
but
i
onofYel
l
ow andOr
ange.The
t
ot
alcont
r
i
but
i
onofYel
l
ow andOr
angei
sP1
20,
000(
P40,
000+P80,
000)
,t
her
ef
or
e,t
o
haveonet
hi
r
di
nt
er
esti
nt
hepar
t
ner
shi
p,Vi
ol
etshoul
dcont
r
i
but
eP60,
000oronet
hi
r
dofa
t
ot
al
capi
t
al
i
zat
i
onofP1
80,
000(
P1
20,
000+P60,
000)
.
[
26]
.
Let
t
er“
B”i
st
hecor
r
.
Thecapi
t
al
bal
anceofeachpar
t
nershal
l
beequal
t
oP,comput
edasf
ol
l
ows:
Wi
l
der
Capi
t
al
bef
or
ust
ment
s
Nest
P78,
500
P70,
000
deduct
ust
ment
s:
I
ncr
easei
ni
nvent
or
y
3,
000
Recei
vabl
eswr
i
t
t
enof
f
(
1
,
000)
(
1
,
500)
Accr
uedexpensesr
ecor
ded
(
4,
000)
ust
edcapi
t
al
bal
ance
P76,
500
Tot
al
capi
t
al(
P76,
500+P68,
500)
Di
vi
dedby
Capi
t
al
bal
anceofeachpar
t
ner
[
27]
.
P68,
500
P1
45,
000
2
P 72,
500
Let
t
er“
C”i
st
hecor
r
.
Theamountofcasht
obecont
r
i
but
edbyCl
ar
ai
sequi
val
entt
o2/
5oft
het
ot
al
agr
eedcapi
t
al
oft
hepar
t
ner
shi
pwhi
chi
st
obebasedont
hecont
r
i
but
i
onofMar
i
a.Thecapi
t
al
cont
r
i
but
ed
byMar
i
ai
sP60,
000(
P25,
000+P50,
000–P1
5,
000)
,t
het
ot
alagr
eedcapi
t
ali
sP1
00,
000
(
P60,
000&divide;3/
5)
,henceCl
ar
ashoul
dcont
r
i
but
ecashequal
t
oP40,
000(
2/
5xP1
00,
000)
.
[
28]
.
Let
t
er“
A”i
st
hecor
r
.
I
fAgai
nvest
sP20,
000f
ora20% i
nt
er
est
,t
hent
ot
alpar
t
ner
shi
pcapi
t
almustbebasedon
Aga’
si
nvest
mentorP1
00,
000(
P20,
000/
20%)andt
hecapi
t
alt
obecr
edi
t
edt
oMat
ai
s
P80,
000(
P1
00,
000–P20,
000)
.I
fMat
acont
r
i
but
esanequi
pmentwor
t
hP50,
000,t
henhe
shoul
di
t
i
onal
cashamount
i
ngt
oP30,
000(
P80,
000–P50,
000)
.
[
29]
.
Let
t
er“
B”i
st
hecor
r
.
Thecashi
nvest
edbyt
hepar
t
ner
si
sequalt
oP20,
000cont
r
i
but
edbyAgaandt
heP30,
000
i
nvest
edbyMat
aorat
ot
al
ofP50,
000.
[
30]
.
Let
t
er“
A”i
st
hecor
r
.
Thecapi
t
alofAlandMacmodshal
lbeequalt
oP,andP,r
espect
i
vel
y.Theseamount
sar
e
comput
edasf
ol
l
ows:
Al
Cash
Macmod
P1
20,
000
Of
f
i
ceequi
pment
P 80,
000
P 200,
000
84,
000
Land
84,
000
1
,
000,
000
Bui
l
di
ng
1
,
000,
000
600,
000
Mor
t
gageonbui
l
di
ng
Capi
t
al
[
31
]
.
Tot
al
600,
000
(
400,
000)
P204,
000
P1
,
280,
000
(400,
000)
P1
,
484,
000
Let
t
er“
B”i
st
hecor
r
.
Theaver
agecapi
t
al
bal
anceofMr
.Boom dur
i
ng201
1
,i
sP8,
800,comput
edasf
ol
l
ows:
Januar
y1I
nvest
ment
:
P8,
000x1
2/
1
2
P8,
000
Apr
i
l 1I
nvest
ment
1
,
600 x 9/
1
2
1
,
200
June
1I
nvest
ment
1
,
600x 7/
1
2
933
Sept
. 1I
nvest
ment
(
4,
000)x 4/
1
2
(
1
,
333)
Mr
.Boom’
saver
agecapi
t
al
bal
ancedur
i
ng201
1
[
32]
.
P 8,
800
Let
t
er“
B”i
st
hecor
r
.
Theneti
ncomeoft
hepar
t
ner
shi
pf
or201
1wasP1
20,
000,comput
edasf
ol
l
ows:
Wi
t
hdr
awal
P1
04,
000
t
i
onal
i
nvest
ment
(20,
000)
Netdecr
easei
ncapi
t
al
(48,
000)
Dul
ce’
sshar
ei
nneti
ncome
Di
vi
debyDul
ce’
sP&amp;Lr
at
i
o
Par
t
ner
shi
p’
sneti
ncomef
ort
heyear201
1
[
33]
.
P36,
000
30%
P1
20,
000
Let
t
er“
B”i
st
hecor
r
.
Pl
aci
do’
s capi
t
alaccountbal
ance woul
d decr
ease i
nt
he amountofP22,
000,
comput
edasf
ol
l
ows:
Tot
al
Pl
aci
do
I
nt
er
est
s:
P440,
000x1
0% ;P80,
000x1
0%
P44,
000
P 8,
000
Sal
ar
i
es
1
00,
000
40,
000
Bal
ance(
def
i
ci
ency)
,equal
l
y
Netpr
of
i
t(
l
oss)
[
34]
.
(21
0,
000) (
70,
000)
P(
66,
000) P(
22,
000)
Let
t
er“
D”i
st
hecor
r
.
Zeep’
sshar
ei
nneti
ncomef
or201
1i
sP600,comput
edasf
ol
l
ows:
Beep
Zeep
Tot
al
Sal
ar
y
P1
6,
000
P7,
200
P23,
200
1
0% i
nt
er
estonbeg.cap.
1
,
600
2,
000
3,
600
Remai
nder
:equal
l
y
(
8,
600)
(
8,
600)
(
1
7,
200)
Neti
ncome
P 9,
000
P 600
P 9,
600
[
35]
.
Let
t
er“
B”i
st
hecor
r
.
The amountofear
ni
ngst
hatshoul
d be cr
edi
t
ed t
o each par
t
ner
’
saccountar
e
P43,
000andP37,
000,f
orRedandWhi
t
e,r
espect
i
vel
y,comput
edasf
ol
l
ows:
Red
Sal
ar
yal
l
owances
Whi
t
e
P55,
000
Tot
al
P45,
000
P1
00,
000
Lossaf
t
eral
l
owances(
60:
40) (1
2,
000) (8,
000) (20,
000)
Ear
ni
ngscr
edi
t
edt
opar
t
ner
s
[
36]
.
P43,
000
P37,
000
P 80,
000
Let
t
er“
B”i
st
hecor
r
.
Thebonust
oPer
ezi
n201
1i
sP1
8,
000,comput
edasf
ol
l
ows:
Netpr
of
i
taf
t
ersal
ar
y,i
nt
er
est
,andbonus
P 32,
000
Sal
ar
yofPer
ez(
P5,
000x1
2)
60,
000
I
nt
er
estonst
ar
t
i
ngcapi
t
al
s(
P200,
000x5%)
1
0,
000
Netpr
of
i
tbef
or
esal
ar
yandi
nt
er
est
,
butbef
or
ebonus
P1
02,
000
Di
vi
deby
Netpr
of
i
tbef
or
esal
ar
y,i
nt
er
est
,andbonus
BonusofPer
ezi
n201
1(
P1
20,
000x1
5%)
[
37]
.
85%
P1
20,
000
P1
8,
000
Let
t
er“
D”i
st
hecor
r
.
TheP1
76,
000oper
at
i
ngi
ncomei
sdi
vi
dedasHer
m,P53,
1
80;Mar
c,P62,
060;andAl
ex,
P60,
760,r
espect
i
vel
y,comput
edasf
ol
l
ows:
Her
m:P1
50,
000x1
2/
1
2
P1
50,
000
30,
000x 6/
1
2
1
5,
000
(
1
0,
000)x3/
1
2
Aver
ageCapi
t
al
(
2,
500)
P1
62,
500
Mar
c:P200,
000x1
2/
1
2
P200,
000
20,
000x5/
1
2
8,
333
(
1
0,
000)x3/
1
2
(
2,
500)
Aver
agecapi
t
al
P205,
833
Al
ex:P250,
000x1
2/
1
2
P250,
000
(
30,
000)x2/
1
2
(
5,
500)
Aver
agecapi
t
al
P245,
000
Her
m
Mar
c
Al
ex
Tot
al
Sal
ar
yal
l
owances
P24,
000
P1
8,
000
P1
2,
000
P54,
000
1
2% i
nt
er
estonaver
agecapi
t
al
1
9,
500
24,
700
29,
400
73,
600
Remai
nder
,2:
4:
4
9,
680
1
9,
360
1
9,
360
48,
400
Di
vi
s
i
onofope.i
nc.
P53,
1
80
62,
060
P60,
670
P1
76,
000
[
38]
.
Let
t
er“
D”i
st
hecor
r
.
Thepar
t
ner
s’capi
t
albal
ancesonDecember31
,201
1ar
eHer
m,P223,
1
80;Mar
c,
P272,
060;andAl
ex,P280,
760,r
espect
i
vel
y,comput
edasf
ol
l
ows:
Her
m
Mar
c
Al
ex
Capi
t
al
bal
ances,Jan.1
P1
50,
000
P200,
000
P250,
000
t
i
onal
cont
r
i
but
i
ons
30,
000
20,
000
Dr
awi
ngs
(
1
0,
000)
(
1
0,
000)
(
30,
000)
Shar
ei
noper
at
i
ngi
ncome(
6)
53,
1
80
62,
060
60,
760
Capi
t
al
bal
ances,Dec.31
,201
1
P223,
1
80
P272,
060
P280,
760
[
39]
.
Let
t
er“
B”i
st
hecor
r
.
I
ncaseofapr
of
i
t
,Bi
ng’
sshar
ewi
l
lbe20% pl
us40% oft
her
emai
ni
ng80%,orat
ot
alof
52%;i
ncaseofal
oss,Bi
ng’
sshar
ewi
l
l
onl
ybe40%.
[
40]
.
Let
t
er“
B”i
st
hecor
r
.
ThebonusofMi
chel
l
ef
ort
heyear201
1i
sP48,
000,comput
edasf
ol
l
ows:
Mi
chel
l
e’
sbonus(
P240,
000&cedil;1
25%)x25%
[
41
]
.
P48,
000
Let
t
er“
C”i
st
hecor
r
.
Mar
k
Val
er
i
e
Nor
a
Tot
al
Cont
r
i
but
edcapi
t
al P200,
000 P1
00,
000 P1
50,
000 P450,
000
Bonus(
3:
1
)
Nor
a’
sAC P225,
000
Nor
a’
sCC 1
50,
000
P 75,
000
Fr
om Mar
k
x&frac34;
(
56,
250)
Fr
om Val
er
i
e x&frac14;
Agr
eedcapi
t
al
[
42]
.
[
43]
.
56,
250
(1
8,
750)
P1
43,
750 P 81
,
250 P225,
000 P450,
000
Let
t
er“
C”i
st
hecor
r
.
Cont
r
i
but
i
onofJoey
P1
20,
000
Agr
eedcapi
t
al
r
at
i
o
1
/
3
Tot
al
agr
eedcapi
t
al
P360,
000
Let
t
er“
A”i
st
hecor
r
.
Capi
t
al
ofLi
z
P24,
000
I
nt
er
estpur
chased
1
/
2
Capi
t
al
cr
edi
tofSunshi
ne
[
44]
.
1
8,
750
P1
2,
000
Let
t
er“
A”i
st
hecor
r
.
Sar
ah’
scont
r
i
but
i
on
P1
,
000,
000
Di
vi
dedbyi
nt
er
estboughtonef
our
t
h
Tot
al
agr
eedcapi
t
al
[
45]
.
P4,
000,
000
Let
t
er“
B”i
st
hecor
r
.
Thet
ot
al
amountof“
goodwi
l
l
”f
ort
heol
dpar
t
ner
si
sP1
5,
000,comput
edasf
ol
l
ows:
Tot
al
agr
eedcapi
t
al
uponVi
nce’
ssi
on
P330,
000
Less:NetAsset
saf
t
erVi
nce’
si
nvest
ment
:
Tot
al
ol
dpar
t
ner
scapi
t
al
P235,
000
Vi
nce’
scashi
nvest
ment
&shy;
Tot
al
netasset
s
Tot
al
“
goodwi
l
l
”f
ort
heol
dpar
t
ner
s
80,
000
31
5,
000
P 1
5,
000
[
46]
.
Let
t
er“
C”i
st
hecor
r
.
Mar
c’
scapi
t
al
bal
ance,af
t
erVi
ssi
oni
sP79,
1
00,comput
edasf
ol
l
ows:
*
Mar
c’
si
nt
er
estpur
chased
byVi
nce(
P80,
000x1
5%)
P1
2,
000
Vi
nce’
scashi
nvest
ment
80,
000
Vi
ncecapi
t
al
cr
edi
t
(70,
000)
Bonust
ool
dpar
t
ner
s
P22,
000
Mar
c’
scapi
t
al
(
bef
or
eVi
ssi
on)
P80,
000
I
nt
er
estpur
chasedbyVi
nce
(1
2,
000)
Shar
ei
ngoodwi
l
l
(
P1
5,
000x30%)
4,
500
Shar
ei
nbonus(
*
P22,
000x30%)
6,
600
Mar
c’
scapi
t
al
(
af
t
erVi
ssi
on)
[
47]
.
P79,
1
00
Let
t
er“
C”i
st
hecor
r
.
ssi
onofanew par
t
nert
oa20% i
nt
er
esti
napar
t
ner
shi
pf
orani
nvest
ment
ofP1
8,
000,wi
t
ht
ot
alagr
eedcapi
t
alt
obeP75,
000r
esul
t
edt
oabonust
ool
dpar
t
ner
sof
P3,
000comput
edasf
ol
l
ows:
Newpar
t
ner
’
si
nvest
ment
P1
8,
000
Less:Newpar
t
ner
’
scapi
t
al
cr
edi
t(
P75,
000x20%)
Bonust
ool
dpar
t
ner
s
[
48]
.
1
5,
000
P 3,
000
Let
t
er“
A”i
st
hecor
r
.
Gi
ven t
he choi
ce bet
ween goodwi
l
land bonusmet
hods,Bl
ue wi
l
lpr
ef
erbonus
met
hodduet
oBl
ue’
sgai
nofP1
05,
000,comput
edasf
ol
l
ows:
GMet
hod
Bl
ue’
scapi
t
al
cr
edi
t
:
BMet
hod
(
P1
,
080,
000&cedil;
75%)x25%
P360,
000
(
P1
,
080,
000&cedil;
P220,
000)x25%
P325,
000
Less:Bl
ue’
si
nvest
ment
220,
000
220,
000
Goodwi
l
l
/
Bonusf
orBl
ue
P1
40,
000
P1
05,
000
Less:Shar
ei
nsubsequentGW
wr
i
t
eof
f(
1
/
3)
Bl
ue’
sgai
n
46,
667
P 93,
333
P1
05,
000
Not
et
hati
ft
he onl
yi
mmedi
at
e ef
f
ecti
sconsi
der
ed,t
he “
goodwi
l
l
”met
hod woul
d be
pr
ef
er
abl
e;butsi
ncegoodwi
l
l
,byi
t
sel
f
,i
snonr
eal
i
zabl
e,t
heover
al
lef
f
ectwoul
df
avort
he
“
bonus”met
hod.
[
49]
.
Let
t
er“
C”i
st
hecor
r
.
Theamountofgoodwi
l
lt
hatwasr
ecogni
zedi
nconnect
i
onwi
t
ht
ssi
onoft
henew
par
t
nerwasP30,
000,comput
edasf
ol
l
ows:
Newcapi
t
al
i
mpl
i
edf
r
om newpar
t
ner
’
si
nvest
ment
:
P60,
000/331
/
3%
P1
80,
000
Less:Resul
t
i
ngasset
saf
t
ernewpar
t
ner
’
si
nvest
ment
:
Or
i
gi
nal
par
t
ner
s’
i
nvest
ment
P80,
000
Neti
ncome
34,
000
Dr
awi
ngs
(24,
000)
Newpar
t
ner
’
si
nvest
ment
60,
000
I
mpl
i
edgoodwi
l
l
(
f
oror
i
gi
nal
par
t
ner
s)
[
50]
.
1
50,
000
P 30,
000
Let
t
er“
B”i
st
hecor
r
.
Theamountoft
hepr
i
vat
ecashset
t
l
ementef
f
ect
edbet
weent
heol
dpar
t
ner
swas
P9,
000,comput
edasf
ol
l
ows:
Tot
al
Ter
r
y
Ti
mmy
Tommy
May31i
nvest
ment
s
P80,
000
P48,
000
P32,
000
P -
Neti
ncome:
Sal
ar
i
es
1
4,
000
Bal
anceat3:
2
7,
000
20,
000
Dr
awi
ngs
7,
000
1
2,
000
8,
000
(24,
000) (1
4,
000) (
1
0,
000)
December31bal
ances P90,
000
I
nvest
ment
I
mpl
i
edgoodwi
l
l
-
-
30,
000
P37,
000
1
8,
000
1
2,
000
ssi
onofnew
P1
80,
000 P71
,
000P49,
000
Desi
r
edbal
ances,4:
3:
2
1
80,
000
Pr
i
vat
eset
t
l
ement
80,
000
P 9,
000
P60,
000
40,
000
P(9,
000)
Ti
mmywi
l
l
t
r
ansf
erP9,
000ofhi
scapi
t
al
t
oTer
r
y.
[
51
]
.
Let
t
er“
D”i
st
hecor
r
.
Concept
ual
quest
i
on.
[
52]
.
Let
t
er“
C”i
st
hecor
r
.
Capi
t
al
ofMi
nda
P200,
000
Lossonf
ur
ni
t
ur
ei
mpai
r
ment
:
Bookval
ue
Fai
rval
ue
Mi
nda’
sshar
e(
1
/
3)
P65,
000
50,
000
P1
5,
000
ust
edcapi
t
al
Lessf
ai
rval
ueoff
ur
ni
t
ur
e
Val
ueofnot
ei
ssuedt
oMi
nda
5,
000
P1
95,
000
50,
000
P1
45,
000
P -
60,
000
Bal
ancesaf
t
er
par
t
ner
-
-
P53,
000
60,
000
-
60,
000
-
[
53]
.
Let
t
er“
A”i
st
hecor
r
.
Capi
t
al
ofPabl
o
P200,
000
eonr
eval
uat
i
onofi
nvent
or
y:
Bookval
ue
P50,
000
Fai
rval
ue
70,
000
P20,
000
x20%
4,
000
Tot
al
P204,
000
ei
nneti
ncome:
P1
30,
000x20%
26,
000
ust
edcapi
t
al
P230,
000
oPabl
o
245,
000
Goodwi
l
l
i
ncl
udedi
nt
hepayment
[
54]
.
P1
5,
000
Let
t
er“
D”i
st
hecor
r
.
Romy’
sacqui
si
t
i
onoft
hef
ur
ni
t
ur
ewoul
dr
esul
ti
nRomy’
sr
educt
i
oni
ncapi
t
alofP55,
000,
comput
edasf
ol
l
ows:
Paco
Qui
n
Romy
Char
gef
orf
ur
ni
t
ur
et
aken,
atsecondhandval
ue
P
P
P50,
000
Shar
ei
nr
eal
i
zat
i
onl
oss,
P65,
000–P50,
000
5,
000
5,
000
5,
000
Reduct
i
oni
ncapi
t
al
i
nci
dentt
o
Romy’
sacqui
si
t
i
onoft
he
Fur
ni
t
ur
e
[
55]
.
P5,
000
P5,
000
P55,
000
Let
t
er“
C”i
st
hecor
r
.
Theval
ueoft
henot
et
hatMi
ndawoul
dgeti
sP1
45,
000,comput
edasf
ol
l
ows:
Mi
nda’
scapi
t
al
P200,
000
Less:Char
gesf
or
:
Secondhandval
ueofassett
aken
P50,
000
Shar
eofl
ossonassett
aken:
(
P65,
000–P50,
000)x1
/
3
5,
000
Tot
al
char
gesagai
nstMi
nda’
scapi
t
al
55,
000
Val
ueoft
henot
et
obei
ssuedt
oMi
nda
[
56]
.
P1
45,
000
Let
t
er“
C”i
st
hecor
r
.
Af
t
erTi
c’
sr
et
i
r
ement
,t
hepar
t
ner
shi
p’
s“
netasset
s”wasP225,
000,comput
edasf
ol
l
ows:
Netasset
s,bef
or
eTi
c’
sr
et
i
r
ement
P400,
000
I
mpl
i
edgoodwi
l
l
:
(
P225,
000–P200,
000)/50%
ust
ednetasset
s
50,
000
P450,
000
Less:Paymentt
oTi
c
225,
000
Netasset
s,af
t
erTi
c’
sr
et
i
r
ement
P225,
000
[
57]
.
Let
t
er“
A”i
st
hecor
r
.
Thepaymentt
oPabl
oi
ncl
udedagoodwi
l
l
ofP1
5,
000,comput
edasf
ol
l
ows:
Paymentf
orPabl
o’
si
nt
er
est
P245,
000
Less:Pabl
o’
si
nt
er
estj
usthi
swi
t
hdr
awal
:
Januar
y1Capi
t
al
P200,
000
ei
n:
I
nvent
or
ywr
i
t
eup:P20,
000x20%
Neti
ncomet
o6/
30:1
30,
000x20%
Jul
y1capi
t
al
j
ustbef
or
ewi
t
hdr
awal
Goodwi
l
l
i
ncl
udedi
npaymentt
oPabl
o
4,
000
26,
000
230,
000
P1
5,
000
[
58]
.
Let
t
er“
C”i
st
hecor
r
.
I
fJunir
ecei
ved P45,
000,Hugo payJunit
he amountofP22,
500,comput
ed as
f
ol
l
ows:
(
P45,
000x&frac12;)
[
59]
.
P22,
500
Let
t
er“
C”i
st
hecor
r
.
Assumi
ngt
heKat
hyi
spai
dP1
32,
000,Kar
enwoul
dbecr
edi
t
edi
nt
heamountof
P1
,
200,comput
edasf
ol
l
ows:
(
P1
35,
000–P1
32,
000)x2/
5
[
60]
.
P1
,
200
Let
t
er“
C”i
st
hecor
r
.
I
fRaei
spai
dP39,
000i
nf
ul
lpaymentofheri
nt
er
est
,t
hecapi
t
alofAnai
mmedi
at
el
y
af
t
erRae’
swi
t
hdr
awal
woul
dbeP23,
400,comput
edasf
ol
l
ows:
Amountpai
dt
oRae
P39,
000
Less:Rae’
scapi
t
al
bal
ance
Bonust
oRaef
r
om AnaandMae
35,
000
P 4,
000
Ana’
scapi
t
al
bal
ancebef
or
eRae’
sr
et
i
r
ement
P25,
000
Less:Shar
ei
nbonust
oRae(
P4,
000x2/
5)
Ana’
scapi
t
al
bal
anceaf
t
erRae’
sr
et
i
r
ement
[
61
]
.
1
,
600
P23,
400
Let
t
er“
D”i
st
hecor
r
.
I
mmedi
at
el
yaf
t
eref
f
ect
i
ngt
het
r
ansf
eroft
henetasset
s,andt
hei
ssuanceofst
ock,
t
he cor
por
at
i
on’
t
i
onalpai
di
n capi
t
alaccountwoul
d be cr
edi
t
ed f
orP1
64,
000,
comput
edasf
ol
l
ows:
Fai
rval
ueofpar
t
ner
shi
p’
snetasset
s:
P224,
000–P40,
000
Less:Parval
ueofst
ocki
ssuedt
opar
t
ner
s:
P1
84,
000
(
1
0,
000xP1
)x2
20,
000
t
i
onal
pai
di
ncapi
t
al
i
nexcessofpar
[
62]
.
P1
64,
000
Let
t
er“
C”i
st
hecor
r
.
Thepar
t
ner
sar
et
or
ecei
veshar
esofst
ock,atP1
0parval
ue,equalt
o1
5,
000,1
5,
000,and
25,
000,r
espect
i
vel
y,comput
edasf
ol
l
ows:
Mac
Kuh
Nat
Repor
t
edcapi
t
albal
ances
P200,
000
P1
00,
000
Shar
ei
nasset
swr
i
t
eup,P1
50,
000,equal
l
y
50,
000
50,
000
P1
00,
000
50,
000
Tot
al
parval
ueofshar
est
obe
r
ecei
vedbyeachpar
t
ner
P1
50,
000 P1
50,
000
P250,
000
Shar
est
ober
ecei
vedbyeach
par
t
ner
,atP1
0parval
ue/
shar
e
25,
000
[
63]
.
1
5,
000
1
5,
000
Let
t
er“
B”i
st
hecor
r
.
Capi
t
al
ofpar
t
ner
shi
pbef
or
ust
mentP260,
000
deduct
ust
ment
s:
spr
ovi
si
on
(1
0,
000)
I
ncr
easei
ni
nvent
or
y
20,
000
Depr
eci
at
i
on
( 3,
000)
ust
edcapi
t
al
equal
t
oshar
es’
parval
ue
[
65]
.
P267,
000
Let
t
er“
B”i
st
hecor
r
.
I
nt
he di
st
r
i
but
i
on oft
he P60,
000 cash,Gar
do r
ecei
ved P26,
000,comput
ed as
f
ol
l
ows:
Tot
al
Gar
do
Gor
do
I
ni
t
i
al
cont
r
i
but
i
ons
P50,
000
P30,
000
P20,
000
1
32,
970
62,
275
Equi
v.I
nvest
ment
s(
payment
s)
Equi
v.Wi
t
hdr
awal
s(
r
ecei
pt
s)
(
1
44,
345) (
79,
1
00) (
65,
245)
Bal
ancesbef
or
epr
of
i
tshar
e
P 38,
625
P1
3,
1
75
P25,
450
21
,
375
1
2,
825
8,
550
P26,
000
P34,
000
Pr
of
i
t(
P60,
000P38,
625)
,6:
4
Di
st
r
i
but
i
onofP60,
000cash
[
66]
.
P60,
000
70,
695
Let
t
er“
Ci
st
hecor
r
.
I
fal
lt
he par
t
ner
s ar
e per
sonal
l
y sol
vent
,def
i
ci
ency/
def
i
ci
enci
es r
esul
t
i
ng f
r
om t
he
l
i
qui
dat
i
on pr
ocess,wi
l
lr
equi
r
t
i
onalcash f
r
om Di
na i
nt
he amountofP50,
000,
comput
edasf
ol
l
ows:
AA
Capi
t
al
bal
ances
Ci
t
a
Di
na
P420,
000 P21
5,
000 P205,
000 P1
00,
000
Loanbal
ances
Tot
al
i
nt
er
est
s
Bi
da
-
1
60,
000
-
50,
000
P420,
000 P375,
000 P205,
000 P1
50,
000
Less:shar
ei
nr
eal
i
zat
i
on
LossofP1
,
000,
000at
3:
3:
2:
2
300,
000 300,
000
Bal
ance(
def
i
ci
ency)
[
67]
.
200,
000 200,
000
P1
20,
000 P P75,
000 P 5,
000P(
50,
000)
Let
t
er“
C”i
st
hecor
r
.
The r
emai
ni
ng cash i
s di
st
r
i
but
ed as Sal
ve,P0;Gi
l
da,P31
,
000;and,Nor
a,P49,
000,
r
espect
i
vel
y,comput
edasf
ol
l
ows:
Sal
ve
Capi
t
al
bal
ances
Gi
l
da
P80,
000
Nor
a
P1
1
5,
000 P1
05,
000
Real
i
zat
i
onl
oss(5:
3:
2)
(
P1
50,
000–P1
00,
000)
Theor
et
i
cal
l
ossonot
her
(
25,
000) (1
5,
000) (1
0,
000)
asset
(
P320,
000P1
50,
000)
(
85,
000) (51
,
000) (34,
000)
Bal
ancesbef
or
edi
st
r
i
but
i
on
P(
30,
000) P 49,
000 P 61
,
000
Sal
ve’
sdef
i
ci
encyat3:
2
30,
000 ( 1
8,
000) ( 1
2,
000)
Cashdi
st
r
i
but
i
on
[
68]
.
P -0-
P 31
,
000 P 49,
000
Let
t
er“
A”i
st
hecor
r
.
Thet
ot
al
l
osst
oAi
s,P3,
000,comput
edasf
ol
l
ows:
Tot
al
bookval
ueofnoncashasset
sr
eal
i
zed:
(
P9,
000+P7,
700+P1
1
,
300)
P28,
000
Less:Tot
al
cas
hr
ecei
ved:
(
P6,
000+P3,
500+P1
2,
500)
22,
000
Tot
al
r
eal
i
zat
i
onl
oss
P 6,
000
Tot
al
l
osst
oA:
(
3/
6ofP6,
000)
[
69]
.
P 3,
000
Let
t
er“
C”i
st
hecor
r
.
Tot
al
cashr
ecei
vedbyBi
sP5,
000,comput
edasf
ol
l
ows
:
B,capi
t
al
P7,
000
Less:Shar
ei
nt
ot
al
r
eal
i
zat
i
onl
oss:
(
2/
6xP6,
000)
2,
000
Tot
al
cashr
ecei
vedbyB
[
70]
.
P5,
000
Let
t
er“
D”i
st
hecor
r
.
Thecashr
ecei
vedbyCi
nJanuar
yi
sP0,comput
edasf
ol
l
ows:
C,capi
t
al
P3,
000
Less:Shar
ei
n:
Real
i
zat
i
onl
ossi
nJanuar
y:
(
P9,
000–P6,
000)x1
/
6
P 500
Theor
et
i
cal
l
osson
r
emai
ni
ngnoncashasset
s:
(
P1
9,
000x1
/
6)
3,
1
67
Tot
al
P3,
667
Cashr
ecei
vedbyCi
nJanuar
y
[
71
]
.
P–0–
Let
t
er“
C”i
st
hecor
r
.
Thet
ot
al
amountr
ecei
vedbyal
l
oft
hepar
t
ner
s,i
fXr
ecei
vedP8,
000uponl
i
qui
dat
i
on
oft
hepar
t
ner
shi
pwasP52,
000,comput
edasf
ol
l
ows:
X,capi
t
al
P40,
000
Less:Amountr
ec’
di
nl
i
qui
dat
i
on
8,
000
X’
sshar
ei
nl
i
qui
dat
i
onl
oss
P32,
000
Tot
al
capi
t
al
oft
het
hr
eepar
t
ner
s
P1
08,
000
Less:Tot
al
l
i
qui
dat
i
onl
oss(
P32,
000&cedil;4x7)
56,
000
Tot
al
amountr
ecei
vedbyal
l
oft
hepar
t
ner
s
P 52,
000
[
72]
.
Let
t
er“
B”i
st
hecor
r
.
Assumi
ngt
hef
act
sgi
veni
nNo.1
7,exceptt
hatXr
ecei
vedP26,
000asar
esul
toft
he
l
i
qui
dat
i
on,aspar
toft
hel
i
qui
dat
i
onZr
ecei
vedt
heamountofP1
4,
500,comput
edasf
ol
l
ows:
X,capi
t
al
P40,
000
Less:Amountr
ec’
di
nl
i
qui
dat
i
on
X’
sshar
ei
nl
i
qui
dat
i
onl
oss
26,
000
P1
4,
000
Z,capi
t
al
P1
8,
000
Less:Shar
ei
nl
i
qui
dat
i
onl
oss(
P1
4,
000&cedil;
4x1
)
Amountr
ecei
vedbyZi
nl
i
qui
dat
i
on
[
73]
.
Let
t
er“
B”i
st
hecor
r
.
3,
500
P1
4,
500
The r
espect
i
ve shar
esofSanchezand Tan i
nt
he f
i
nalcash di
st
r
i
but
i
on wi
l
lbe
P1
75,
000andP1
25,
000,r
espect
i
vel
y,comput
edasf
ol
l
ows:
Tot
al
Capi
t
al
bal
ances
Tan
P1
,
250,
000 P750,
000 P500,
000
Not
epayabl
et
oTan
Tot
al
i
nt
er
est
Sanchez
200,
000
-
200,
000
P1
,
450,
000 P750,
000 P700,
000
Real
i
zat
i
onl
oss,equal
l
y:
P1
,
450,
000–P300,
000
(
P1
,
1
50,
000) (
575,
000) (
575,
000)
Shar
ei
nf
i
nal
di
st
r
i
but
i
on
[
74]
.
P 300,
000 P1
75,
000 P1
25,
000
Let
t
er“
B”i
st
hecor
r
.
I
fl
i
qui
dat
i
ont
akespl
aceandasset
sar
er
eal
i
zedatbookval
ue,t
hepar
t
ner
swoul
d
r
ecei
vecashdi
st
r
i
but
i
onsequal
t
ot
hei
rr
ecor
dedcapi
t
al
bal
ancesi
nf
i
nal
l
i
qui
dat
i
on.
[
75]
.
Let
t
er“
B”i
st
hecor
r
.
Johnr
ecei
vedt
ot
al
cashdi
st
r
i
but
i
onofP20,
000,comput
edasf
ol
l
ows:
Al
ex
Capi
t
al
bal
ances
Jay
P95,
000
John
P80,
000
P70,
000
Lossonr
eal
i
zat
i
onofot
her
asset
sat2:
1
:
1
(
P1
50,
000–P70,
000)
(
40,
000) (
20,
000) (
20,
000)
Theor
et
i
cal
l
osson
r
emai
ni
ngot
herasset
s
(
P265,
000P1
50,
000)
ust
edcapi
t
al
bal
ances
Def
i
ci
encyofAl
ex
Cashdi
st
r
i
but
i
onbasi
s
[
76]
.
(
57,
500) (
28,
750) (
28,
750)
P(2,
500) P31
,
250
P21
,
250
2,
500 ( 1
,
250) ( 1
,
250)
P -0-
Let
t
er“
D”i
st
hecor
r
.
P30,
000
P20,
000
Jo shoul
d absor
b P40,
000 oft
her
emai
ni
ng cl
ai
m agai
nstt
hef
i
r
m comput
ed as
f
ol
l
ows:
Tot
al
Jo
Lee
Vi
Capi
t
al
bal
ances
P 950,
000
P350,
000 P250,
000 P350,
000
Real
i
zat
i
onl
oss
(
1
,
000,
000) (
300,
000) (
200,
000) (
500,
000)
P(50,
000) P 50,
000P 50,
000P (
1
50,
000)
Vi
’
sdef
i
ci
ency,3:
2
-
(90,
000)(
60,
000)
1
50,
000
Li
abi
l
i
t
yf
orunpai
d
Cl
ai
m
[
77]
.
P(50,
000) P(40,
000)P(1
0,
000) P–0-
Let
t
er“
B”i
st
hecor
r
.
I
ft
hef
i
r
stcashsal
eofasset
sbooked atP1
50,
000 r
esul
t
ed i
nnetr
eal
i
zat
i
onof
P1
20,
000,t
heamountt
obedi
st
r
i
but
edt
oI
r
enewoul
dbeP44,
000,comput
edasf
ol
l
ows:
I
r
ene’
scapi
t
al
P70,
000
Less:Shar
ei
n:
Real
i
zat
i
onl
oss:
(
P1
50,
000–P1
20,
000)x20%
P 6,
000
Possi
bl
el
ossonr
emai
ni
ngot
herasset
s:
(
P250,
000–P1
50,
000)x20%
I
r
ene’
sshar
ei
nf
i
r
stcashdi
st
r
i
but
i
on
20,
000 26,
000
P44,
000
[
l
xxvi
i
i
]
. Let
t
er“
D”i
st
hecor
r
.
ForDan t
or
ecei
ve P55,
200 i
nf
ul
lset
t
l
ementofhi
si
nt
er
esti
nt
he par
t
ner
shi
p,
P1
93,
000mustber
eal
i
zedf
r
om t
hesal
eoft
hepar
t
ner
shi
p’
snoncashasset
s,comput
edas
f
ol
l
ows:
Par
t
ner
s’
capi
t
al
Li
abi
l
i
t
i
es
P1
30,
000
90,
000
Cash
( 40,
000)
Noncashasset
s
P1
80,
000
Dan’
sdesi
r
edshar
ei
nset
t
l
ement
P55,
200
Less:Dan’
scapi
t
al
bal
ance
50,
000
Dan’
sshar
ei
nest
i
mat
edr
eal
i
zat
i
ongai
n
P 5,
200
Noncashasset
s
P1
80,
000
Est
i
mat
edr
eal
i
zat
i
ongai
n(
P5,
200&cedil;40%)
1
3,
000
Est
i
mat
edr
eal
i
zat
i
onf
r
om sal
eofnoncashasset
[
l
xxi
x]
.
P1
93,
000
Let
t
er“
A”i
st
hecor
r
.
Thedef
i
ci
entpar
t
neri
sBachandhi
t
i
onalcashcont
r
i
but
i
ont
of
i
nal
l
yl
i
qui
dat
et
he
par
t
ner
shi
pi
sP6,
000,comput
esasf
ol
l
ows:
Bach
Li
zst
St
r
auss
Tot
al
i
nt
er
est(
capi
t
al
and
l
oanbal
ances)
P55,
000
P1
05,
000 P200,
000
Real
i
zat
i
onl
oss,at4:
4:
2
P400,
000–P247,
500
Bal
ance(
def
i
ci
ency)
[
l
xxx]
.
(61
,
000) (61
,
000) (30,
500)
P(6,
000) P 44,
000 P1
69,
500
Let
t
er“
A”i
st
hecor
r
.
Thebookval
ueoft
hepar
t
ner
shi
p’
snoncashasset
sonMay31
,201
1
,wasP1
80,
000,
comput
edasf
ol
l
ows:
Par
t
ner
s’
capi
t
al
(
assumedt
obeaf
t
er
consi
der
i
ngt
heneti
ncome)
Li
abi
l
i
t
i
es
P1
30,
000
90,
000
Tot
al
asset
s
Less:Cash
Bookval
ueofnoncashasset
sonMay31
,201
1
endofqui
zzer
-
P220,
000
40,
000
P1
80,
000
```