Question
Brawn and Power are partners with capital balances of P600,000 and P900,000, respectively. Their profit and loss ratio is 6:4. Will is admitted to the
Brawn and Power are partners with capital balances of P600,000 and P900,000, respectively. Their profit and loss ratio is 6:4. Will is admitted to the partnership for a 30% interest in the partnership.
Please answer the following:
1. If Will pays P600,000 to Brawn and Power for the 30% interest in `the partnership, what are the capital balances of Brawn, Power, and Will immediately after the admission of Will in the partnership?
2. If Will invests P500,000 in the partnership, how much are the capital balances of Brawn, Power, and Will immediately after the admission of Will in the partnership?
3. If Will invests P500,000 in the partnership and the partners agreed that the initial agreed capital of the new partnership is P2,250,000, what are the capital balances of Brawn, Power, and Will immediately after Will's admission?
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