Roth and Carla aro partners in ABC Partnershin On August 1. 2020. Darla and Ella were
Roth and Carla aro partners in ABC Partnershin On August 1. 2020. Darla and Ella were
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 2BCRQ
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Transcribed Image Text:10
Ana, Beth and Carla are partners in ABC Partnership. On August 1,2020, Darla and Ella were
admitted to the partnership by contributing cash of 50,000 each so that each will have 15%
interest in the partnership as well as in the share in the profits and losses. From January 1,
2020 to August 1,2020 the partnership business incurred a net profit of P 25,000. This net
profit was not yet closed to the capital accounts as of August 1,2020. At the time of admission
of the new partners, all the assets of the partnership are fairly valued.
The partper's capital balance as of August 1,2019 before admission with their profit or loss
ratio arelas follows:
ACapital- 250,000 (20%)
B. Capital - 300,000( 50%)
C Capital -275, 000( 30%)
The partner's will retain their profit and loss ratio even after admission of Darla and Ella.
How much is the capital balance of Ana after the admission of Darla and Ella?
250000
225 000
e37 500
255 000
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