Gideon and Joshua were partners with capital account balances of P260,000 and $240,000, respectively, and shared profits and losses in the ratio of 6:4, respectively. The partners decided to admit Levi as a new partner with a 20% equity interest for an investment in the partnership of P150,000. Prior to admission, Gideon and Joshua would revalue the partnership's assets. If the net increase in the partnership assets was P185,000, what would be the balance of Gideon's capital account after revaluation but before the admission of Levi?

Gideon and Joshua were partners with capital account balances of P260,000 and $240,000, respectively, and shared profits and losses in the ratio of 6:4, respectively. The partners decided to admit Levi as a new partner with a 20% equity interest for an investment in the partnership of P150,000. Prior to admission, Gideon and Joshua would revalue the partnership's assets. If the net increase in the partnership assets was P185,000, what would be the balance of Gideon's capital account after revaluation but before the admission of Levi?

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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