4. Adjusted capital balances before Elaina’s admission 5. Amount of cash to be invested by Elaina in the partnership 6. Adjusted capital balances before Shantalle’s withdrawal
Background:
Josche
In 2020:
· On July 1, 2020, the partnership agreed to admit Elaina as their partner, investing cash that will give her 20% interest in the partnership. Before admitting Elaina, the partnership suffered net loss amounting to P200,000, and write-off uncollectible
· At the second half of 2020, the partnership earned and incurred the following: Sales, P600,000, Cost of sales, P300,000, Operating expenses, P100,000. At 2020 year-end, Shantalle decided to withdraw from the partnership, and received P600,750 for her interest in the partnership.
· Neither additional investment nor permanent withdrawals occurred during the year.
Required: You were tasked by the partnership as an accounting employee and asked to answer the following:
For 2020:
4. Adjusted capital balances before Elaina’s admission
5. Amount of cash to be invested by Elaina in the partnership
6. Adjusted capital balances before Shantalle’s withdrawal
7. Capital balances of remaining partners after Shantalle’s withdrawal
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