E1, E2, and E3 are partners sharing profits in the ratio of 4:4:2 respectively. As of December 31, 2018, their capital balances were P190,000 for E1, P160,000 for E2, and P120,000 for E3. On January 2, 2019, the partners admitted E4 as a new partner and according to their agreement, E4 will contribute P160,000 in cash to the partnership and also pay E2 for 15% of his share. E4 will be given a 20% share in profits while original partners share will be proportionately the same as before. After the admission of E4, the total capital will be P660,000 and E4's capital be P140,000. What is the capital balance of E3 after the admission of E4?
E1, E2, and E3 are partners sharing profits in the ratio of 4:4:2 respectively. As of December 31, 2018, their capital balances were P190,000 for E1, P160,000 for E2, and P120,000 for E3. On January 2, 2019, the partners admitted E4 as a new partner and according to their agreement, E4 will contribute P160,000 in cash to the partnership and also pay E2 for 15% of his share. E4 will be given a 20% share in profits while original partners share will be proportionately the same as before. After the admission of E4, the total capital will be P660,000 and E4's capital be P140,000. What is the capital balance of E3 after the admission of E4?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E1, E2, and E3 are partners sharing profits in the ratio of 4:4:2 respectively. As of December 31, 2018, their capital balances were P190,000 for E1, P160,000 for
E2, and P120,000 for E3. On January 2, 2019, the partners admitted E4 as a new partner and according to their agreement, E4 will contribute P160,000 in cash to the partnership and also pay E2 for 15% of
his share. E4 will be given a 20% share in profits while original partners share will be proportionately the same as before. After the admission of E4, the total capital will be P660,000 and E4's capital be P140,000. What is the capital balance of E3 after the admission of E4?
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