Please explain it properly 10. How much is the capital balances of Wanda after Banner's withdrawal?Banner and Strange are partners who have capital balances of P65,000 and P35,000 and share profits3:2. Wanda is admitted as a partner and is given a 25% interest in the firm upon investing P40,000cash. Profits are to be shared 5:3:2 by Banner, Strange and Wanda. Subsequently a new partner, Peter,was admitted by investing P25,000 cash for a 20% interest in assets and a 20% share of the firm'sprofits. Former partners share the balance of profits in their original ratio. Banner has difficulty gettingalong with Peter and as a result, Banner withdraws from the partnership. The partnership pays P73,000cash for Banner's interest.

Given: To find the capital balances as, Capital Balances of Banner = P 65,000 and Strange = P 35,000…

Answered: se explain it properly

Business

Accounting

se explain it properly

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 32P

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Banner and Strange are partners who have a capital balances of P65,000 and P35,000 and share profits 3:2. Wanda is admitted as a partner and is given a 25% interest in the firm upon investing P40,000 cash. Profits are to be share 5:3:2 by Banner, Strange and Wanda. Subsequently a new partner, Peter, was admitted by investing P25,000 cash for a 20% interest in assets and a 20% share of the firm’s profits. Former partners share the balance of profits in their original ratio. Banner has difficulty getting along with Peter as a result, Banner withdraws from partnership. The partnership pays P73,000 cash for Banner’s interest. How much is the capital balances of Strange after Banner’s withdrawal under bonus method?
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