are partners with capital balances of P30,000 and P70,000 ,respectively. MMM has a 30% interest in profits and losses. At this time, the partnership has decided to admit RRR and LLL as new partners. RRR contributes cash of P55,000 for a 20% interest in capital and a 30% interest in profits and losses. LLL contributes cash of P10,000 and an equipment for a 25% interest in capital and 35% interest in profits and losses. If bonus amounting to P18,250 is given to the old partners,

Q: 1β. L and M participate in the limited liability company "L" with participation percentages of 70%…

A: To address this scenario, we need to break it down step by step to determine the additional capital…

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.