Mallari and Chua are partners who share profits and losses in a ratio of 3:2, respectively. They have the following capital balances on September 30, 2018. Mallari, Capital P250,000 Cr. Chua, Capital P500,000 Cr. The partners agreed to admit Palatino to the partnership. Calculate the capital balances of each partner after the admission of Palatino, assuming that bonuses are recorded when appropriate for each of the following assumptions: 1. Palatino paid Mallari P250,000 for 50% of his interest 2. Palatino invested P250,000 for one-fourth interest in the partnership 3. Palatino invested P250,000 for a 30% interest in the partnership
Mallari and Chua are partners who share profits and losses in a ratio of 3:2, respectively. They have the following capital balances on September 30, 2018. Mallari, Capital P250,000 Cr. Chua, Capital P500,000 Cr. The partners agreed to admit Palatino to the partnership. Calculate the capital balances of each partner after the admission of Palatino, assuming that bonuses are recorded when appropriate for each of the following assumptions: 1. Palatino paid Mallari P250,000 for 50% of his interest 2. Palatino invested P250,000 for one-fourth interest in the partnership 3. Palatino invested P250,000 for a 30% interest in the partnership
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mallari and Chua are partners who share profits and losses in a ratio of 3:2, respectively. They have the following capital balances on September 30, 2018.
Mallari, Capital P250,000 Cr.
Chua, Capital P500,000 Cr.
The partners agreed to admit Palatino to the partnership.
Calculate the capital balances of each partner after the admission of Palatino, assuming that bonuses are recorded when appropriate for each of the following assumptions:
1. Palatino paid Mallari P250,000 for 50% of his interest
2. Palatino invested P250,000 for one-fourth interest in the partnership
3. Palatino invested P250,000 for a 30% interest in the partnership
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