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Fred and Mike are in partnership sharing profits and losses in the ratio of 3:2 respectively. They agree to admit Warren who is to invest
Fred and Mike are in partnership sharing profits and losses in the ratio of 3:2 respectively. They agree to admit Warren who is to invest $55,000 in the firm for one-fifth of the future profits in the business. Fred and Mike had capital balances of $50,000 and $25,000 respectively on the date of admission of Warren.
Determine Warren's capital account on admission.
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