42 Chapter 3
CHAPTER 3
MULTIPLE CHOICE ANSWERS AND SOLUTIONS
3-1: c
Implied capital of the partnership (P90,000/20%) P450,000
Actual value of the partnership ( 420,000)
Goodwill P 30,000
AQUINO LOCSIN DAVID HIZON
Capital balances before Goodwill P252,000 P126,000 P42,000 –
Goodwill to old partners __18,000 ___9,000 __3,000 _____–
Total P270,000 P135,000 P45,000 –
Purchase by Hizon (20%) ( 54,000) ( 27,000) ( 9,000) _90,000
Capital balances after admission P216,000 P108,000 P36,000 P 90,000
3-2: b
AQUINO LOCSIN DAVID HIZON
Capital balances before admission P252,000 P126,000 P42,000 –
Purchase by Hizon (20%) ( 50,400) ( 25,200) ( 8,400) _84,000
Capital balances after admission P201,600 P100,800 P33,600 P 84,000
3-3: d
AQUINO LOCSIN DAVID TOTAL
Capital transferred P 50,400 P 25,200 P 8,400 P 84,000
