On December 31,2020, the Statement of Financial Position of BEA Partnership shows the following data together with the profit or loss sharing ratio: Cash Other assets 1,500,000 P1,000,000 500,000 300,000 200,000 P500,000 Total liabilities Brazil, Capital (10%) Europe, Capital (30%) Argentina, Capital (60%) On January 1, 2021, Russia will be admitted to the new partnership named BEAR Partnership by investing P400,000 for a 30% capital interest in the new partnership which has total agreed capitalization of P2,000,000. 5. What is the new capital balance of Argentina upon admission of Russia in the BEAR Partnership? C. 560,000 D 840 000 A 320,000 R 440 000
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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