On January 1, ABC, DEF and GHI admitted JKL as a new partner. The partners were sharing profits in a ratio of 5:3:2 for ABC, DEF and GHI respectively. The capital balances of the partners are as follows: ABC DEF GHI 175,750 148,000 111,000 JKL will contribute cash of P160,000 to the partnership and will purchase 10% of ABC's share for P15,000. JKL is to have 40% share in the partnership. After the admission of JKL the total capital will be P650,000. Compute for the capital balance of DEF.
On January 1, ABC, DEF and GHI admitted JKL as a new partner. The partners were sharing profits in a ratio of 5:3:2 for ABC, DEF and GHI respectively. The capital balances of the partners are as follows: ABC DEF GHI 175,750 148,000 111,000 JKL will contribute cash of P160,000 to the partnership and will purchase 10% of ABC's share for P15,000. JKL is to have 40% share in the partnership. After the admission of JKL the total capital will be P650,000. Compute for the capital balance of DEF.
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 20P
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Transcribed Image Text:On January 1, ABC, DEF and GHI admitted JKL as a new partner. The
partners were sharing profits in a ratio of 5:3:2 for ABC, DEF and GHI
respectively. The capital balances of the partners are as follows:
ABC
DEF
GHI
175,750
148,000
111,000
JKL will contribute cash of P160,000 to the partnership and will purchase 10%
of ABC's share for P15,000. JKL is to have 40% share in the partnership.
After the admission of JKL the total capital will be P650,000. Compute for the
capital balance of DEF.
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