Question
Tito, Vic, and Joey decided to admit Allan, a new partner into the TVJ Partnership. Tito, Vic, and Joey share profits in the ratio of
Tito, Vic, and Joey decided to admit Allan, a new partner into the TVJ Partnership. Tito, Vic, and Joey share profits in the ratio of 3:2:1, respectively. The statement of financial position of the TVJ Partnership shows the following:
Cash
P142,500
Receivables, net
163,750
Equipment, net
256,250
Liabilities
117,500
Tito, Capital
180,000
Vic, Capital
140,000
Joey, Capital
125,000
The partners decided to revalue the equipment to P206,250 and recognized also the Net Income before Allan's admission amounting to P160,000. Allan is to invest P 271,000 for 1/4 interest in capital and profit share.
What are the total adjusted capital balances of Tito, Vic, and Joey before the admission of Allan?
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