The following are the capital account balances and profit and loss ratios of the partners in AB Partnership as of July 1, 2020: Capital accounts 250,000 350,000 Profit & loss ratios 40% А, Саptal в, Сарital 60% On July 1, 2020, C was admitted to the partnership when he purchased half of A's capital interest for P100,000. How much is A's capital balance after the admission of C?
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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