24. The partnership of Kris, Erich and Eunice reflected beginning capital balances of P75,000; P25,000 and P100,000 and profit and loss ratios of 5:4:1 to Kris, Erich and Eunice, respectively. The partners plan to dissolve their business and admit Kelly into the new partnership. Kelly is to invest P25,000 for a 10% interest in the new partnership and is to be credited the same amount of capital in the new partnership. Determine the capital balance of Kris after Kelly's admission into the partnership.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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