The capital account of the partnership of Lily and Marie at October 31, 2021 are as follows: Lily, Capital P80,000 Marie, Capital 40,000 The partners share profits and losses in the ration of 6:4 respectively. The partnership would like to expand it business and the partners agree to admit Nancy as a partner with one-third in the capital and profits and losses upon her investment of P30,000. Assuming asset) revaluation is to be recognized, what will the capital balance of Marie after the admission of Nancy?
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.
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