Capital balances and profit-sharing percentages for the partnership of Manda, Emeril, and Fotenot on January 2, 2020 are as follows: Manda (36%) 140,000 Emeril (24%) 100,000 Fontenot (40%) 160,000 On January 4, 2020, the partners agree to admit Boudreaux into the partnership for 25% interest in capital and earnings for his investment in the partnership of P120,000. Partnership assets are not to be revalued.
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.
Capital balances and profit-sharing percentages for the
|
Manda (36%) |
140,000 |
|
Emeril (24%) |
100,000 |
|
Fontenot (40%) |
160,000 |
On January 4, 2020, the partners agree to admit Boudreaux into the partnership for 25% interest in capital and earnings for his investment in the partnership of P120,000. Partnership assets are not to be revalued.
What is the capital balance of partner Manda immediately after the admission of Boudreaux?
Step by step
Solved in 2 steps
