n the MJ Partnership, May's capital is P140,000 and Jun's capital is P40,000. They share income in a 3:1 ratio, respectively. They decided to admit Julie to the partnership, May and Jun agreed that some of the inventory amounting to P20,000 is obsolete. The inventory account is decreased before Julie was admitted. Julie invests P40,000 for a one-fifth interest in the partnership capitalization. lizzes What is the capital balance of Jun after Julie was admitted in the partnership?

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
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In the MJ Partnership, May's capital is P140,000 and Jun's capital is P40,000. They share income in a 3:1 ratio, respectively. They decided to admit Julie to the partnership, May and Jun agreed that some of the inventory amounting to P20,000 is obsolete. The inventory account is decreased before Julie was admitted. Julie invests P40,000 for a one-fifth interest in the partnership capitalization. lizzes

What is the capital balance of Jun after Julie was admitted in the partnership?

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