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The Samuel Partnership shows the following profit and loss ratios and capital balances: Andrew (60%), P252,000; Mila (30%), P126,000 and Philip (10%), P42,000. The partners decide to sell to Violet 20 percent of their respective capital and profit and loss interests for a total payment of P90,000. Violet will pay the money directly to the other partners. What are the capital balances of partners after Violet’s admission to the partnership?   Andrew Mila Philip Violet

The Samuel Partnership shows the following profit and loss ratios and capital balances: Andrew (60%), P252,000; Mila (30%), P126,000 and Philip (10%), P42,000. The partners decide to sell to Violet 20 percent of their respective capital and profit and loss interests for a total payment of P90,000. Violet will pay the money directly to the other partners. What are the capital balances of partners after Violet’s admission to the partnership?   Andrew Mila Philip Violet

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Samuel Partnership shows the following profit and loss ratios and capital balances:
Andrew (60%), P252,000; Mila (30%), P126,000 and Philip (10%), P42,000. The
partners decide to sell to Violet 20 percent of their respective capital and profit and loss
interests for a total payment of P90,000. Violet will pay the money directly to the other
partners. What are the capital balances of partners after Violet’s admission to the
partnership?
 
Andrew
Mila
Philip
Violet
 
a.
P198,000
P 99,000
P33,000
P90,000
b.
P201,600
P100,800
P33,600
P84,000
c.
P216,000
P108,000
P36,000
P90,000
d.
P255,699
P127,800
P42,600
P84,000
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