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A1 and A2 are partners in a retail business and divide prots 60% to A1 and 40% to A2. Their capital balances at December 31,2019

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A1 and A2 are partners in a retail business and divide prots 60% to A1 and 40% to A2. Their capital balances at December 31,2019 are as follows: A1 - P 130,000 A2 - 180,000 The partners agree to admit A3 into the partnership on January 2,2020. A3 purchases 13% interest in the partnership capital and profits directly from A1 and A2 for P 150,000

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