Cortez, Cuerdo, and Claudio are partners with capital balances of P180,000, P100,000 and P120,000, respectively. Conde is admitted into the partnership with a ¼ interest upon payment of P160,000. If the old partners share profits and losses in the ratio of 2/5, 2/5 and 1/5, then the capital account of Claudio after the admission of Conde will show a balance of
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.
Cortez, Cuerdo, and Claudio are partners with capital balances of P180,000, P100,000 and P120,000, respectively. Conde is admitted into the
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