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
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 and share in profits and the old partners will share in the remaining profit based on their old ratio. What is the capital balance of D2 after the admission of D4?
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.
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