A, B and C are partners with capital balances and profit and loss ratios of P50,000 (30%), P70,000 (20%) and P79,500 (50%), each respectively. The partnership owes C P20,000, while B owes the partnership P10,000. D is admitted into the partnership by purchasing 1/2 of the capital of A and B for P70,000 and investing P30,000 for a 40% interest in the partnership. After D’s admission, total partnership capital will be P235,000. How much is the capital of A after D’s admission? How much is the capital of D after D’s admission?
A, B and C are partners with capital balances and profit and loss ratios of P50,000 (30%), P70,000 (20%) and P79,500 (50%), each respectively. The partnership owes C P20,000, while B owes the partnership P10,000. D is admitted into the partnership by purchasing 1/2 of the capital of A and B for P70,000 and investing P30,000 for a 40% interest in the partnership. After D’s admission, total partnership capital will be P235,000. How much is the capital of A after D’s admission? How much is the capital of D after D’s admission?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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A, B and C are partners with capital balances and
How much is the capital of A after D’s admission?
How much is the capital of D after D’s admission?
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