Capital balances and profit sharing percentages for the partnership of Man, Eme, and Fot on January 1,

Question:

Capital balances and profit sharing percentages for the of Man, Eme, and Fot on January 1, 2011, are as follows:
Man (36%) ...... $140,000
Eme (24%) ..... 100,000
Fot (40%) ...... 160,000
$400,000
On January 3, 2011, the partners agree to admit Box into the for a 25 percent interest in capital and earnings for his investment in the of $120,000. assets are not to be revalued.
REQUIRED
1. Determine the capital balances of the four partners immediately after the admission of Box.
2. What is the profit and loss sharing ratio for Man, Eme, Fot, and Box?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...