The capital accounts of the Maniquiz and Monte partnership on Sept. 30, 2020 were: Maniquiz, Capital (75% profit percentage) P 140, 000 Monte, Capital (25% profit percentage) 56, 000 P 196, 000 On Oct. 1, Galang was admitted to a 35% interest in the partnership when he purchased 35% of each existing partner’s capital for P 100, 000, paid directly to Maniquiz and Monte. REQUIRED: Determine the capital balances of Maniquiz, Monte and Galang after Galang’s admission to the partnership.
The capital accounts of the Maniquiz and Monte partnership on Sept. 30, 2020 were: Maniquiz, Capital (75% profit percentage) P 140, 000 Monte, Capital (25% profit percentage) 56, 000 P 196, 000 On Oct. 1, Galang was admitted to a 35% interest in the partnership when he purchased 35% of each existing partner’s capital for P 100, 000, paid directly to Maniquiz and Monte. REQUIRED: Determine the capital balances of Maniquiz, Monte and Galang after Galang’s admission to the partnership.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The capital accounts of the Maniquiz and Monte partnership on Sept. 30, 2020 were:
Maniquiz, Capital (75% profit percentage) P 140, 000
Monte, Capital (25% profit percentage) 56, 000
P 196, 000
On Oct. 1, Galang was admitted to a 35% interest in the partnership when he purchased 35% of each
existing partner’s capital for P 100, 000, paid directly to Maniquiz and Monte.
REQUIRED: Determine the capital balances of Maniquiz, Monte and Galang after Galang’s admission to
the partnership.
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