7. On December 31, 2019, Lilo, Stitch, and Tom were partners with capital account balances of P95,000, P80,000, and P60,000, respectively, and shared rofits and losses in the ratio 5:3:2, respectively. The partners decided to admit Jerry as a new partner by contributing cash of P80,000 to the partnership and by paying P10,000 for 15% of Stitch's share. Jerry would have a 20% share in the profit and loss ratio. After the admission, the partnership would have a total capital balance of P330,000 and Jerry's, Capital account balance of P70,000. If such was the case, the capital balance of Stitch immediately after the admission of Jerry should be

7. On December 31, 2019, Lilo, Stitch, and Tom were partners with capital account balances of P95,000, P80,000, and P60,000, respectively, and shared rofits and losses in the ratio 5:3:2, respectively. The partners decided to admit Jerry as a new partner by contributing cash of P80,000 to the partnership and by paying P10,000 for 15% of Stitch's share. Jerry would have a 20% share in the profit and loss ratio. After the admission, the partnership would have a total capital balance of P330,000 and Jerry's, Capital account balance of P70,000. If such was the case, the capital balance of Stitch immediately after the admission of Jerry should be

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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