Hi! Can you help me make a solution for these? I can’t seem to arrive there. D1, D2, and D3 are partners whose capital balances are P250,000,150,000, and P125,000 respectively and their profit ratio are 50:25:25respectively. D4 is admitted into the partnership by purchasing 1/3 equityshare of D2 for P60,000 and investing P200,000 cash to the partnership.The partners agree to the total capitalization of P750,000, 1/3 of which isD4 capital credit and share in profits and the old partners will share in theremaining profit based on their old ratio. What is the capital balance of D1after the admission of D4?262,500 E1, E2, and E3 are partners sharing profits in the ratio of 4:4:2respectively. As of December 31, 2018, their capital balances wereP190,000 for E1, P160,000 for E2, and P120,000 for E3. On January 2,2019, the partners admitted E4 as a new partner and according to theiragreement, E4 will contribute P160,000 in cash to the partnership andalso pay E2 for 15% of his share. E4 will be given a 20% share in profitswhile original partners share will be proportionately the same as before.After the admission of E4, the total capital will be P660,000 and E4'scapital be P140,000. What is the capital balance of E2 after theadmission of E4?165,600

Partnership :A partnership is an arrangement between two or more persons whereby they agree to…

D1, D2, and D3 are partners whose capital balances are P250,000, 150,000, and P125,000 respectively and their profit ratio are 50:25:25 respectively. D4 is admitted into the partnership by purchasing 1/3 equity share of D2 for P60,000 and investing P200,000 cash to the partnership. The partners agree to the total capitalization of P750,000, 1/3 of which is D4 capital credit and share in profits and the old partners will share in the remaining profit based on their old ratio. What is the capital balance of D1 after the admission of D4?

D1, D2, and D3 are partners whose capital balances are P250,000, 150,000, and P125,000 respectively and their profit ratio are 50:25:25 respectively. D4 is admitted into the partnership by purchasing 1/3 equity share of D2 for P60,000 and investing P200,000 cash to the partnership. The partners agree to the total capitalization of P750,000, 1/3 of which is D4 capital credit and share in profits and the old partners will share in the remaining profit based on their old ratio. What is the capital balance of D1 after the admission of D4?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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