Nina, Ricci and Ralph are partners with capital balances of P 90,000, P 50,000 and P 60,000 respectively. Coach is admitted into the partnership with a one-fourth interest upon investing P 80,000. if the old partners share profits and losses in the ratio of 2:2:1. Using the bonus method, how much is the capital balance of Ricci after the admission of Coach? How much is the new capital balance of Ricci after the admission of Coach?* How much is the capital balance of Coach after her admission as a new partner?*
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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