In the MJ Partnership, May's capital is P140,000 and Jun's capital is P40,000. They share income in a 3:1 ratio, respectively. They decided to admit Julie to the partnership. May and Jun agreed that some of the inventory amounting to P20,000 is obsolete. The inventory account is decreased before Julie was admitted. Julie invests P40,000 for a one-fifth interest in the partnership capitalization. What is the capital balance of Jun after Julie was admitted in the partnership?

In the MJ Partnership, May's capital is P140,000 and Jun's capital is P40,000. They share income in a 3:1 ratio, respectively. They decided to admit Julie to the partnership. May and Jun agreed that some of the inventory amounting to P20,000 is obsolete. The inventory account is decreased before Julie was admitted. Julie invests P40,000 for a one-fifth interest in the partnership capitalization. What is the capital balance of Jun after Julie was admitted in the partnership?

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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