Reference no: EM132808118

Problem 1: Ben and Ric are partners who share profits and losses in the ratio of 6:4, respectively. On May 1, 2009, their respective capital accounts were as follows: Ben, P60,000 and Ric, P50,000. On that date, Lito was admitted as a partner with a one-third interest in capital and profits for an investment of P40,000. The new partnership began with a total capital of P150,000. Immediately after Lito's admission, Ben's capital account balance should be:

A. P50,000

B. P54,000

C. P56,667

D. P60,000

Problem 2: June and July are partners who share profits and losses equally. The capital accounts of June and July have tripled in five years and at present have the following balances: June, P90,000; July, P60,000. August desires to join the firm and offered to invest P50,000 for a one-third interest. June and July declined his offer, but they extended a counter-offer to August of P70,000 for a one-fourth interest in the capital and profits and losses of the firm. What should be the capital balances of June and July after Augusts' admission?

A. P 100,000; P 70,000

B. P 120,000; P 90,000

C. P 97,500; P 67,500

D. P 90,000; P 60,000