Exercise $4-18.$ Retirement with the computation of capital balance after the

retirement of one partner and bonus to either retiring partner or remaining

partners.

MM$,$ NN$,$ and SS are partners sharing profits and losses of $40\%,40\%,$ and

$20\%,$ respectively. The December $31,2023$ trial balance included the

following information:

Debits

On January $1,2024,$ a partner decided to retire from the partnership and by

mutual agreement among the partners, the following adjustments shall be

made:

c$.$ Inventories amounting to $P40,000$ is considered obsolete and must be

written off.

d$.$ The fair value of the equipment is $P270,000.$

e$.$ The tradename will not be used anymore and should be written off.

Answer the following:

If SS retired and received P$180,000$ in settlement of his total interest,

how much is the adjusted capital of MM and NN after the retirement of

SS$?$

If NN retired and received $P342,000$ in settlement of his total interest,

how much is the adjusted capital of MM and SS after the retirement of

NN$?$

If $MM$ retired and received $P358,000$ in settlement of his total interest,

how much is the adjusted capital of NN and SS after the retirement of

$MM?$