What is the capital balance of Mart after the admission of Vince?
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 12DQ
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Transcribed Image Text:Mitz, Marc and Mart are partners sharing earnings in the ratio of 5:3:2
respectively. As of December 31, 2018, their capital balance showed
P95,000 for Mitz, P80,000 for Marc, and P60,000 for Mart. On January 1,
2019 the partnership admitted Vince as a new partner and according to
the partnership agreement, Vince will contribute P80,000 in cash to the
partnership and will also pay P10,000 for 15% of Marc's share. Vince will
share 20% in the earnings while the ratio of the original partners will
remain proportionately the same as before Vince admission. After Vince's
admission, the total capital of the partnership will be P345,000 while
Vince's capital will be P86,000.
What is the capital balance of Mart after the admission of Vince?
67,200
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