Presented below is the condensed balance sheet of the partnership of A, B, and C who share profits and losses in the ratio of 2:3:5. respectively: Cash 100,000 Liabilities 50,000 Other assets 350,000 A, Capital 110,000 B, Capital 120,000 C, Capital 170,000 Total 450,000 Total 450,000 The partners agree to sell to D 10% of their respective capital and profit and loss interests for a total payment of P50,000. The payment by D is to be made directly to the individual partners using the book value approach. Determine the capital balance of B after admission of the new partner.
Presented below is the condensed balance sheet of the partnership of A, B, and C who share profits and losses in the ratio of 2:3:5. respectively: Cash 100,000 Liabilities 50,000 Other assets 350,000 A, Capital 110,000 B, Capital 120,000 C, Capital 170,000 Total 450,000 Total 450,000 The partners agree to sell to D 10% of their respective capital and profit and loss interests for a total payment of P50,000. The payment by D is to be made directly to the individual partners using the book value approach. Determine the capital balance of B after admission of the new partner.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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Presented below is the condensed balance sheet of the
Cash |
100,000 |
Liabilities |
50,000 |
Other assets |
350,000 |
A, Capital |
110,000 |
B, Capital |
120,000 |
||
C, Capital |
170,000 |
||
Total |
450,000 |
Total |
450,000 |
The partners agree to sell to D 10% of their respective capital and
Determine the capital balance of B after admission of the new partner.
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