Lea, Gian and Leonard are partners whose January 1, 2020 capital balances and share in profits and losses are as follows: Lea P250,000; 50% Gian 150,000; 20% Leonard 180,000; 30% Sam is to be admitted on the following conditions in 2020: Sam is to pay Lea P150,000 for ½ of Lea’s interest Sam is also to invest P300,000 in the partnership The total capital of the partnership after Sam’s admission will be P1,000,000, of which Sam’s interest and share in profit and loss is 40%. 1. Determine the capital balances of the partners after the admission. 2. Determine the distribution of the net income of P200,000 in 2020
Lea, Gian and Leonard are partners whose January 1, 2020 capital balances and share in profits and losses are as follows: Lea P250,000; 50% Gian 150,000; 20% Leonard 180,000; 30% Sam is to be admitted on the following conditions in 2020: Sam is to pay Lea P150,000 for ½ of Lea’s interest Sam is also to invest P300,000 in the partnership The total capital of the partnership after Sam’s admission will be P1,000,000, of which Sam’s interest and share in profit and loss is 40%. 1. Determine the capital balances of the partners after the admission. 2. Determine the distribution of the net income of P200,000 in 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lea, Gian and Leonard are partners whose January 1, 2020 capital balances and share in profits and losses are as
follows:
Lea P250,000; 50%
Gian 150,000; 20%
Leonard 180,000; 30%
Sam is to be admitted on the following conditions in 2020:
Sam is to pay Lea P150,000 for ½ of Lea’s interest
Sam is also to invest P300,000 in the partnership
The total capital of the partnership after Sam’s admission will be P1,000,000, of which Sam’s interest and
share in
1. Determine the capital balances of the partners after the admission.
2. Determine the distribution of the net income of P200,000 in 2020
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