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Problem 1: Elizabeth, Arden and Hugo are partners sharing profits in the ratio 3:2:1, respectively. Capital accounts are P 500,000, P 300,000 and P 200,000 for Elizabeth, Arden and Hugo, respectively on December 31, 2019, when Hugo decided to withdraw. It is agreed to pay P 300,000 for Hugo's interest. Profits after the retirement of Hugo are to shared equally. Assuming the use of bonus method, how much is the capital balance of Elizabeth after the retirement of Hugo?
Problem 2: how much is the capital balance of Arden after the retirement of Hugo?
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