Reference no: EM132817128

A, B and C are partners with capital balances and profit and loss ratios of P50,000 (30%), P70,000 (20%) and P79,500 (50%), each respectively. The partnership owes C P20,000, while B owes the partnership P10,000. D is admitted into the partnership by purchasing 1/2 of the capital of B for P40,000 and investing P30,000 for a 40% interest in the partnership. The partners agree that there should be asset revaluation. After D's admission, total partnership capital will be P300,000.

Problem 1: How much is the capital of B after D's admission?

a. 38,100

b. 35,300

c. 34,100

d. 39,100

Problem 2: How much is the share of D in the asset adjustment after D's admission?

a. 55,000

b. 50,000

c. None

d. 22,000

Problem 3: How much is the capital of C after D's admission?

a. 104,500

b. 77,250

c. 89,750

d. 79,500