Terence and Romeo are partners who share profits and losses 60% and 40%, respectively. Their capital accounts on July 1, 2017 were as follows: Terence - P 280,000; Romeo - P240,000. On this date, they agree to admit Arwind as a new partner. 1. If Arwind purchased % of the equity of Terence for P 100,000, how much would be capital the total partnership after Arwind's admission? 2. If Arwind invested P 180,000 for a % interest in the firm and that the assets of the partnership are fairly valued, what would be the capital of Terence after Arwind's admission? 3. If Arwind invested P 130,000 for a 25% interest in the firm and that the assets of the partnership are fairly valued, what would be the capital of Romeo after the admission of Arwind?

Terence and Romeo are partners who share profits and losses 60% and 40%, respectively. Their capital accounts on July 1, 2017 were as follows: Terence - P 280,000; Romeo - P240,000. On this date, they agree to admit Arwind as a new partner. 1. If Arwind purchased % of the equity of Terence for P 100,000, how much would be capital the total partnership after Arwind's admission? 2. If Arwind invested P 180,000 for a % interest in the firm and that the assets of the partnership are fairly valued, what would be the capital of Terence after Arwind's admission? 3. If Arwind invested P 130,000 for a 25% interest in the firm and that the assets of the partnership are fairly valued, what would be the capital of Romeo after the admission of Arwind?

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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