AA BB and CC are partners with capital balances of P392,000, P1,365,000 and P595.000 respectively Sharing prohts and losses in the ratio of 3:2:1. DD is admited as a new partner bringing with him expertise and is to inmvest cash for a 25% interest in the partnership which includes a credit of P367.500 for bonus upo his admissiOn. How much is the adjusted capital of BB after admission of DD?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
AA BB and CC are partners with capital balances of P392,000, P1,365,000 and P595.000 respectively
Sharing prohts and losses in the ratio of 3:2:1. DD is admited as a new partner bringing with him expertise
and is to inmvest cash for a 25% interest in the
his admissiOn.
How much is the adjusted capital of BB after admission of DD?
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