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Exercise 4 – 10 Admission by Investment: Computing Old Partners' Agreed Capital Bala loe, Efren and Rene who share earnings in a 5:2:3 ratio, have capital balances of P! P200,000 and P300,000, respectively. They decided to admit Milet as a new partner agreed however, that the admission of the new partner should not involve any asset adju f Milet is given a 20% interest in the firm by investing an amount equal to P300,000. Required: Compute for the amount of Joe, Efren, and Rene's capital after Milet's adm partner in the partnership.

Exercise 4 – 10 Admission by Investment: Computing Old Partners' Agreed Capital Bala loe, Efren and Rene who share earnings in a 5:2:3 ratio, have capital balances of P! P200,000 and P300,000, respectively. They decided to admit Milet as a new partner agreed however, that the admission of the new partner should not involve any asset adju f Milet is given a 20% interest in the firm by investing an amount equal to P300,000. Required: Compute for the amount of Joe, Efren, and Rene's capital after Milet's adm partner in the partnership.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 4 - 10 Admission by Investment: Computing Old Partners' Agreed Capital Balances Joe, Efren and Rene who share earnings in a 5:2:3 ratio, have capital balances of P500,000, P200,000 and P300,000, respectively. They decided to admit Milet as a new partner. It was agreed however, that the admission of the new partner should not involve any asset adjustment. If Milet is given a 20% interest in the firm by investing an amount equal to P300,000. Required: Compute for the amount of Joe, Efren, and Rene's capital after Milet's admission as partner in the partnership.
Transcribed Image Text:Exercise 4 - 10 Admission by Investment: Computing Old Partners' Agreed Capital Balances Joe, Efren and Rene who share earnings in a 5:2:3 ratio, have capital balances of P500,000, P200,000 and P300,000, respectively. They decided to admit Milet as a new partner. It was agreed however, that the admission of the new partner should not involve any asset adjustment. If Milet is given a 20% interest in the firm by investing an amount equal to P300,000. Required: Compute for the amount of Joe, Efren, and Rene's capital after Milet's admission as partner in the partnership.
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