Ang, Beng and Ching are partners sharing profits in the ratio of 3:3:2. On June 30, 2020 their capital balances are as follows: Ang, P 600,000; Beng, P400,000; and Ching, P300,000. The partners agree to admit Dong on the following agreement: a. Dong is to pay Ang P400,000 for % interest of Ang's interest. b. Dong is also to invest P300,000 in the partnership. c. The total capital of the partnership is to be P2,000,000, of which Dong's interest is to be 25%. What is the capital balance of Beng after the admission of Dong?
Ang, Beng and Ching are partners sharing profits in the ratio of 3:3:2. On June 30, 2020 their capital balances are as follows: Ang, P 600,000; Beng, P400,000; and Ching, P300,000. The partners agree to admit Dong on the following agreement: a. Dong is to pay Ang P400,000 for % interest of Ang's interest. b. Dong is also to invest P300,000 in the partnership. c. The total capital of the partnership is to be P2,000,000, of which Dong's interest is to be 25%. What is the capital balance of Beng after the admission of Dong?
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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Transcribed Image Text:Ang, Beng and Ching are partners sharing profits in the ratio of 3:3:2. On June 30, 2020 their
capital balances are as follows: Ang, P 600,000; Beng, P400,000; and Ching, P300,000.
The partners agree to admit Dong on the following agreement:
a. Dong is to pay Ang P400,000 for ½ interest of Ang's interest.
b. Dong is also to invest P300,000 in the partnership.
c. The total capital of the partnership is to be P2,000,000, of which Dong's interest is to
be 25%.
What is the capital balance of Beng after the admission of Dong?
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