Francis and Dominic are partners who share profits and losses in the ratio of 6:4. On January 1, 2020, their capital accounts are:

Francis 320,000

Dominic 80,000

TOTAL 400,000

John is to be admitted for a 20 percent interest in the partnership by direct purchase from the partners for P120,000.

Required:

1. Determine the book value of Francis and Dominic interest acquired by John. Francis_________ Dominic_________
2. How should the P120,000 cash be divided between Francis and Dominic? Francis_________ Dominic________
3. Determine each partner capital balances after the admission of John. Francis_________ Dominic________ John_________