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:

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:

$1.$ Inventories amounting to P$40,000$ is considered obsolete and must be written off.

$2.$ The fair value of the equipment is P$270,000.$

$3.$ The tradename will not be used anymore and should be written off.

Questions:

$1.$ If SS retired and received P$180,000$ in settlement of his total interest, how much is the adjusted capital of MM after the retirement of SS$?$ ANSWER SHOULD BE $330,000.$ SHOW SOLUTIONS.

$2.$ If SS retired and received P$180,000$ in settlement of his total interest, how much is the adjusted capital of NN after the retirement of SS$?$ ANSWER SHOULD BE $290,000.$ SHOW SOLUTIONS.