C and D are partners who share profits and losses in the ratio of 7:3, respectively. On October 5,2019, their respective capital accounts were as follows: C-P 35,000 D- 30,000 On that date they agreed to admit S as a partner with a one-third interest in the capital and profits and losses, and upon his investment of P 25,000. The new partnership will begin with a total capital of P 90,000. Immediately after S' admission, how much is the capital balance of C?
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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