JM and PK, having capital balances of P2,940,000 and P1,575,000 respectively, decided to admit CY into their partnership. CY is to invest sufficient amounts in order to have a 25% interest in the partnership. If JM and PK share profit in a proportion of 3:1, respectively, and PK’s capital balance after CY’s investment was P1,769,250. How much was invested by CY? A. 2,546,250 B. 2,541,000 C. 3,522,750 D. 1,764,000
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.
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