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The Capital accounts of KJ partnership on September 30,2019 were:
Kyle Capital (75% profit ratio) 140,000.00
Justin Capital (25% profit ratio) 60,000.00
Total 200,000.00
The partnership assets and liabilities have book values equal to their fair values. On October 1, 2019, Chris was admitted to a 40% interest in the partnership, when he purchased 40% of each existing partner's capital for P120,000, paid directly to Kyle and Justin.
Problem 1: Compute the capital balances of the partners after the admission of Chris.
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