Allen and Michelle are partners with capitals of P200,000 and P100,000 and sharing profit and losses 3.1 respectively. They agree to admit Bianca as partner. Bianca invest P125,000 for a 25% interest in firm Parties agree that the total firm capital after Bianca's admission is to be P425,000, The capital balance of Michelle after Bianca's admission are? (2 decimal places)*
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.
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