A, B and C partnership shows the following profit and loss ratios and capital balances: A60%300,000 B30%120,000 C10%50,000 The partners decided to sell D 20% of their respective capital and profit and loss interests for a total payment of 90,000. D will pay directly to the partners. If the partners agreed to revalue the assets prior to the admission of D, what is the capital balance of C after D's admission?

Partnership is a business in which partners agree to share profits and losses as per profit and…

Answered: A, B and C partnership shows the…

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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A, B and C partnership shows the following profit and loss ratios and capital balances:

A	60%	300,000
B	30%	120,000
C	10%	50,000

The partners decided to sell D 20% of their respective capital and profit and loss interests for a total payment of 90,000. D will pay directly to the partners. If the partners agreed to revalue the assets prior to the admission of D, what is the capital balance of C after D's admission?