The following capital balances is presented for the partnership of LL, PP, QQ, who share profits and losses in the ration of 4:3:3 respectively: LL, capital . P310,000 PP, capital. P200,000 QQ, capital. P190,000 Assume that the assets and liabilities are fairly valued on the balance sheet and that the partnership decides to admit FF as a new partner, with a 20% interest. How much should FF contribute in cash or other assets?
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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