Partners Chan, Chen, and Chin share profits and losses 50:30:20, respectively. The capital account for the partnership of S, M, and Y at Oct. 31, 2021 follows: Chan, Capital-------- P 80,000 Chen, Capital------- 40,000 Chin, Capital-------- 30,000 Total -------------- P150,000 The assets and liabilities are recorded and presented at their respective fair values. Chon is to be admitted as a new partner with a 15% capital interest and a 20% share in profits and losses in exchange for a 30,000 cash contribution. The new partnership will begin with a total capital of P180,000. How much is Chon's capital after admission?
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.
Partners Chan, Chen, and Chin share
Chan, Capital-------- P 80,000
Chen, Capital------- 40,000
Chin, Capital-------- 30,000
Total -------------- P150,000
The assets and liabilities are recorded and presented at their respective fair values. Chon is to be admitted as a new partner with a 15% capital interest and a 20% share in profits and losses in exchange for a 30,000 cash contribution. The new partnership will begin with a total capital of P180,000. How much is Chon's capital after admission?
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