The capital account for the partnership of A and B at March 31, 2020 are as follows:A, Capital - 80,000B, Capital - 40,000The partners share profits and losses in the ratio of 3:2 respectively.The partnership decided to admit C as a partner with 1/3 interest in the capital and profits and losses uponhis contribution of P30,000. Immediately after C's admission, what should be the capital balances of A, B,and C respectively, assuming bonus is to be recognized?

Partnership is the agreement between two or more partners where all the partners join hands to start…

Answered: The capital account for 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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The capital account balances for April & May LLP 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 Apri's capital account after the new partnership is created?

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