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:
CashP142,500Receivables, net163,750Equipment, net256,250Liabilities117,500Tito, Capital180,000Vic, Capital140,000Joey, Capital125,000The partners decided to revalue the equipment to P206,250 and recognized also the Net Income before Allan's admission amounting to P150,000. Allan is to invest P 215,000 for 1/4 interest in capital and profit share.
How much is the capital of Tito after the admission of Allan?
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Advanced Accounting
Authors: Kenneth Smith, Floyd Beams, Joseph Anthony, Bruce Bettinghaus
12th Global Edition
1292059346, 978-1292059341
