Problem #1 Admission by Purchase of Interest The capital balance of the Song and Monte partnership on Sept. 30, 2011 were: Song, Capital (75% profit percentage) P140,000 Monte, Capital (25% profit percentage) 56,000 Total Capital P196,000 On Oct. 1, Pena was admitted to a 35% interest in the partnership when he purchased 35% of each existing partner's capital for P100, 000, paid directly to Song and Monte. Required: Determine the capital balances of Song, Monte and Pena after Pena's admission to the partnership.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Problem #1 Admission by Purchase of Interest The capital balance of the Song and Monte partnership on Sept. 30, 2011 were: Song, Capital (75% profit percentage) P140,000 Monte, Capital (25% profit percentage) 56,000 Total Capital P196,000 On Oct. 1, Pena was admitted to a 35% interest in the partnership when he purchased 35% of each existing partner's capital for P100, 000, paid directly to Song and Monte. Required: Determine the capital balances of Song, Monte and Pena after Pena's admission to the partnership.
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