May and Jun are partners who have capital balances of P1,000,000 and P800,000 and share profits 60:40 respectively. They agreed to admit Julie as a partner up her contribution of P600,000. One-fourth of the capita balances of the old partners were transferred to the new partner Julie with May and Jun dividing the cash betwe themselves. How much is the total amount of cash received by May from Julie upon her admission as partner in the partnership?
May and Jun are partners who have capital balances of P1,000,000 and P800,000 and share profits 60:40 respectively. They agreed to admit Julie as a partner up her contribution of P600,000. One-fourth of the capita balances of the old partners were transferred to the new partner Julie with May and Jun dividing the cash betwe themselves. How much is the total amount of cash received by May from Julie upon her admission as partner in the partnership?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:May and Jun are partners who have capital balances of
P1,000,000 and P800,000 and share profits 60:40
respectively. They agreed to admit Julie as a partner upon
her contribution of P600,000. One-fourth of the capital
balances of the old partners were transferred to the new
partner Julie with May and Jun dividing the cash between
themselves.
How much is the total amount of cash received by May
from Julie upon her admission as partner in the
partnership?
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