20. CC and DD are partners who share profits and losses in the ratio of 7:3, respectively. On October 21, 2021, their respective capital accounts were as follows: C . P35,000 DD. . P30,000 .... Total P65,000
20. CC and DD are partners who share profits and losses in the ratio of 7:3, respectively. On October 21, 2021, their respective capital accounts were as follows: C . P35,000 DD. . P30,000 .... Total P65,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:20. CC and DD are partners who share profits and losses in the ratio of 7:3, respectively. On October
21, 2021, their respective capital accounts were as follows:
C . P35,000
DD .
P30,000
Total
P65,000
On that date they agreed to admit EE as a partner with a one-third interest in the capital and
profit and losses, and upon his investment of P25,000. The new partnership will begin with a
total capital of PS90,000. Immediately after EE's admission, what are the capital balance of CC
DD and EE, respectively?
a. P30,000; P30,000; P30,000
b. P31,500; P28,500; P30,000
c. P31,667; P28,333; P30,000
d. P35,000; P30,000; P25,000
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