D1, D2, and D3 are partners whose capital balances are P250,000, 150,000, and P125,000 respectively and their profit ratio are 50:25:25 respectively. D4 is admitted into the partnership by purchasing 1/3 equity share of D2 for P60,000 and investing P220,000 cash to the partnership. The partners agree to the total capitalization of P760,000, 1/4 of which is D4 capital credit
D1, D2, and D3 are partners whose capital balances are P250,000, 150,000, and P125,000 respectively and their profit ratio are 50:25:25 respectively. D4 is admitted into the partnership by purchasing 1/3 equity share of D2 for P60,000 and investing P220,000 cash to the partnership. The partners agree to the total capitalization of P760,000, 1/4 of which is D4 capital credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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D1, D2, and D3 are partners whose capital balances are P250,000, 150,000, and P125,000 respectively and their profit ratio are 50:25:25 respectively. D4 is admitted into the
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