Katy and Perry who share profits and losses in the ratio of 3:7 are partners with capital balances of P40,000 and P60,000, respectively. Hermes is to be admitted into the partnership for 20% interest in the capital of the new partnership. If assets are revalued and the capital balances of Katy and Perry after recording the admission of Hermes are P52,000 and P88,000, respectively, how much will be the amount invested by Hermes?
Katy and Perry who share profits and losses in the ratio of 3:7 are partners with capital balances of P40,000 and P60,000, respectively. Hermes is to be admitted into the partnership for 20% interest in the capital of the new partnership. If assets are revalued and the capital balances of Katy and Perry after recording the admission of Hermes are P52,000 and P88,000, respectively, how much will be the amount invested by Hermes?
Katy and Perry who share profits and losses in the ratio of 3:7 are partners with capital balances of P40,000 and P60,000, respectively. Hermes is to be admitted into the partnership for 20% interest in the capital of the new partnership. If assets are revalued and the capital balances of Katy and Perry after recording the admission of Hermes are P52,000 and P88,000, respectively, how much will be the amount invested by Hermes?
Katy and Perry who share profits and losses in the ratio of 3:7 are partners with capital balances of P40,000 and P60,000, respectively. Hermes is to be admitted into the partnership for 20% interest in the capital of the new partnership. If assets are revalued and the capital balances of Katy and Perry after recording the admission of Hermes are P52,000 and P88,000, respectively, how much will be the amount invested by Hermes?
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
