The ABC Partnership shows the following profit and loss ratios and capital balances of its partners: Partner AA 60% P500,000 Partner BB 30% 240,000 Partner CC 10% 90,000 They agreed to admit DD into the partnership with a 25% interest in the partnership by investing P250,000 into the partnership. How much is the capital balance of BB after admission of DD into the partnership?
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.
The ABC Partnership shows the following
|
Partner AA |
60% |
P500,000 |
|
Partner BB |
30% |
240,000 |
|
Partner CC |
10% |
90,000 |
They agreed to admit DD into the partnership with a 25% interest in the partnership by investing P250,000 into the partnership.
How much is the capital balance of BB after admission of DD into the partnership?
Step by step
Solved in 2 steps
