May and Jun are partners with profit and loss ratio of 75:25 and capital balances of P480,000 and P320,000, respectively. Julie is to be admitted into the partnership for 20% interest in the capital, profits and losses by investing cash. Assuming that the equipment of the partnership is undervalued by P60,000 and inventories are overvalued by P10,000. How much is the capital balance of Jun after admission of Julie?
May and Jun are partners with profit and loss ratio of 75:25 and capital balances of P480,000 and P320,000, respectively. Julie is to be admitted into the partnership for 20% interest in the capital, profits and losses by investing cash. Assuming that the equipment of the partnership is undervalued by P60,000 and inventories are overvalued by P10,000. How much is the capital balance of Jun after admission of Julie?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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Transcribed Image Text:May and Jun are partners with profit and loss ratio of
75:25 and capital balances of P480,000 and P320,000,
respectively. Julie is to be admitted into the partnership
for 20% interest in the capital, profits and losses by
investing cash. Assuming that the equipment of the
partnership is undervalued by P60,000 and inventories
are overvalued by P10,000.
How much is the capital balance of Jun after admission of
Julie?
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