On January 1, 2017, Kevin Garnett and Steve Nash have capital balances of P 174,600 and P 110,400, respectively. On this date, Karl Malone is admitted as a partner upon his investment of P 120,000 in the firm. Kevin and Steve, sharing profits and losses in the ratio of 65:35, gave a bonus to Karl so that Karl may have a 40% interest in the firm. How much is the decrease in Steve's capital balance?

On January 1, 2017, Kevin Garnett and Steve Nash have capital balances of P 174,600 and P 110,400, respectively. On this date, Karl Malone is admitted as a partner upon his investment of P 120,000 in the firm. Kevin and Steve, sharing profits and losses in the ratio of 65:35, gave a bonus to Karl so that Karl may have a 40% interest in the firm. How much is the decrease in Steve's capital balance?

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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