Lima and Mitra are partners with a profit and loss ratio of 75:25 and capital balances of P100,000 and P50,000 respectively. Nova is to be admitted into the partnership by purchasing a 20% interest in the capital, profits and losses for P60,000.

SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
Author:Raabe
Publisher:Raabe
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 59P
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Lima and Mitra are partners with a profit and loss ratio of 75:25 and capital balances of P100,000 and P50,000 respectively. Nova is to be admitted into the partnership by purchasing a 20% interest in the capital, profits and losses for P60,000.

Assuming that no asset revaluation is to be made, the capital balances of Lima, and Mitra after the admission of Nova are

Lima, P112,000 and Mitra, P38,000
Lima, P100,000 and Mitra, P50,000
Lima, P120,000 and Mitra, P60,000
Lima, P80,000 and Mitra, P40,000.
Assuming that asset revaluation is to be made, the capital balances of Lima, Mitra and Nova are
P170,000; P70,000; P60,000
P192,500; P77,500; P30,000
P100,000; P50,000; P60,000
P800,000; P40,000; P30,000
 
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