Lay and Zayn sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and decide to admit Lulu to the partnership. Lay capital is P100,000 while Zayn capital is P80,000 and they share income in a ratio of 3:2. Lulu invests P40,000 for a one fifth interest in the total capital of P220,000 What is the capital of partner Zayn after admission of the new partner?
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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