Reference no: EM132849211

Problem 1 - Aldo, Bert and Chris formed a partnership April 30, with following assets:

	Aldo	Bert	Chris
Cash	P10,000	P12,000	P30,000
Delivery trucks	150,000	28,000	-
Computers	8,500	5,100	-
Office furniture	-	3,500	2,500
Totals	P168,500	P46,800	P32,500

Although Chris has contributed the most cash to the partnership, he did not have the full amount of P30,000 available and was forced borrow P20,000. The delivery truck allocated by Aldo has mortgage of P90,000 and the partnership is to assume responsibility for the loan. The partners are to be made outside the partnership. Using the Bonus Method.

Problem 2 - On September 1, 2008, the business assets and liabilities of Amor and Bhea were as follows:

	Amor	Bhea
Cash	P28,000	P62,000
Accounts receivable	200,000	600,000
Inventories	120,000	200,000
Land	600,000	-
Building	-	500,000
Furniture and fixtures	50,000	35,000
Other assets	2,000	3,000
Accounts Payable	180,000	250,000
Notes Payable	200,000	350,000

Amor and Bhea agreed form a partnership contributing their respective assets and liabilities subject to the following agreements:

Accounts receivable of P20,000 in Amor's books and P40,000 in Bhea's books are uncollectible.

Inventories of P6,000 and P7,000 are obsolete in Amor's and Bhea's respective books.

Other assets of P2,000 and P3,000 in Amor's and Bhea's respective books are to be written off.

Accrue expenses of P2,000 and P5,000 in Amor's and Bhea's books are to be recognized.

Goodwill is to be recognized to equalizer their capital accounts after the above adjustments.

The amount of goodwill to be recognized is?

Problem 3 - Red, White and Blue form a partnership on May 1, 2008. They agree that Red will contribution office equipment with a total fair value of P40,000; White will contribute delivery equipment with a with a fair value of P80,000; and Blue will contribute cash. If Blue wants a one third interest in the capital and profits, he should contribute cash of.

Problem 4 - The partnership of Perez and Reyes was formed on March 31, 2008. On this date, Perez invested P50,000 cash and office equipment valued at P30,000. Reyes invested P70,000 cash merchandise valued at P110,000, and furnitures valued at P100,000, subject to notes payable of P50,000 (which the partnership assumes). The partnership provides that Perez and Reyes share profits and losses 25:75, respectively. The agreement further provides that the partners should initially have, an equal interest in the partnership capital. Under the goodwill and the bonus method, what is the total capital of the partners after the formation?