May and Jun are partners with profit and loss ratio of 75:25 and capital balances of P480,000 and P320,000, respectively. Julie is to be admitted into the partnership for 20% interest in the capital, profits and losses by investing cash. Assuming that the equipment of the partnership is undervalued by P60,000 and inventories are overvalued by P10,000. How much is the capital balance of Jun after admission of Julie?

May and Jun are partners with profit and loss ratio of 75:25 and capital balances of P480,000 and P320,000, respectively. Julie is to be admitted into the partnership for 20% interest in the capital, profits and losses by investing cash. Assuming that the equipment of the partnership is undervalued by P60,000 and inventories are overvalued by P10,000. How much is the capital balance of Jun after admission of Julie?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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