sharing earnings in the ratio 5:3:2 respectively. As of December 31, 2019, their capital balance showed 95,000, 80,000 and 60,000 for Mitz, Marc, and Mart, respectively. On January 1, 2020, the partnership admitted Vince as a new partner and according to the partnership agreement, Vince will contribute 80,000 cash and will also pay 100,000 for 15% of Marc’s share. Vince will share 20% in the earnings while
Mitz, Marc and Mart are partners sharing earnings in the ratio 5:3:2 respectively. As of December 31, 2019, their capital balance showed 95,000, 80,000 and 60,000 for Mitz, Marc, and Mart, respectively.
On January 1, 2020, the partnership admitted Vince as a new partner and according to the partnership agreement, Vince will contribute 80,000 cash and will also pay 100,000 for 15% of Marc’s share. Vince will share 20% in the earnings while the ratio of the original partners will remain proportionately the same as before Vince’s admission. After Vince’s admission, the total capital of the partnership will be 330,000 while Vince’s capital account will be 70,000. Compute for the respective balance of the original partners’ capital account after the admission of Vince.
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