The capital account balances for April & May on January 1, 2020, were as follows: April, Capital P200,000 May, capital P100,000 April and May shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit July to the partnership with a 35% interest in partnership capital and net income. July invested P100,000 cash and no goodwill was recognized. What is the balance of April's capital account after the new partnership is created?
The capital account balances for April & May on January 1, 2020, were as follows: April, Capital P200,000 May, capital P100,000 April and May shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit July to the partnership with a 35% interest in partnership capital and net income. July invested P100,000 cash and no goodwill was recognized. What is the balance of April's capital account after the new partnership is created?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BD
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The capital account balances for April & May on January 1, 2020, were as follows: April, Capital P200,000 May, capital P100,000
April and May shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit July to the partnership with a 35% interest in partnership capital and net income. July invested P100,000 cash and no goodwill was recognized. What is the balance of April's capital account after the new partnership is created?
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