Capital balances of Chris, Oscar and Tim in the COT partnership are $120,000, $100,000 and $80,000 respectively. The profit and loss ratio is 5:3:2. The SCOT partnership is formed by admitting Susan to the firm with a cash investment of $120,000 for a 25% interest. After the admission of Susan as the partner, SCOT partnership reports:

Capital balances of Chris, Oscar and Tim in the COT partnership are $120,000, $100,000 and $80,000 respectively. The profit and loss ratio is 5:3:2. The SCOT partnership is formed by admitting Susan to the firm with a cash investment of $120,000 for a 25% interest. After the admission of Susan as the partner, SCOT partnership reports:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 11MC: Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at...

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