May, Two, and Low, sharing profits and losses in the ratio of 50:30:20, have capital credit balances of P400,000; P300,000 and P200,000, respectively. They decided to admit Nose as a new partner for a 30% interest in the partnership upon Nose’s investment of an amount equal to five-sixths of his capital credit with no asset adjustment to be recognized. Immediately after the admission of Nose, how much will be the capital credit balance of Two? A. 300,000 C. 270,000 B. 282,000 D. 250,000
May, Two, and Low, sharing
A. 300,000 C. 270,000
B. 282,000 D. 250,000
Nali contributed P24,000 and To contributed P48,000 to form a partnership and they agreed to share profits in the ratio of their original capital contributions. During the first year of operations, they made a profit of P16,290; Nali withdrew P5,050 and Toh P8,000. At the start of the following year, they agreed to admit Me into the partnership. Me was to receive a one fourth interest in the capital and profits upon payment of P30,000 to Nali and Tohh, whose capital accounts were to be reduced by transfers of Me’s capital account of amounts sufficient to bring them back to their original capital ratio.
How much of the P30,000 paid by Me be given to Nali
A. 10,000 C. 5,570
B. 9,300 D. 3,730
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