Admission by Purchase of Interest Bonus Method The capital accounts of the Guerrero and Alajar partnership on Sept. 30, 2006 were: Guerrero, Capital (75 profit percentage) Alajar. Capital (25% profil percentage) Total Capital P140,000 56,000 P196,000 On Oct. 1. Franco was admitted to a 35% interest in the partnership when he purchased 35% of each existing partner's capital for P100,000, paid directly to Guerrero and Alajar. Required: Determine the capital balances of Guerrero, Alajar, and France after Franco's admission to the partnership if goodwill is not recorded