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The capital accounts for the partnership of Joselito Villarta and Rene Cason at October 2009 are as follows:
Villarta, Capital 240,000
Cason, Capital 120,000
TOTAL 360,000
The partners shared profits and losses in the ratio of 6:4, respectively.
The partnership is desperately in need of cash and the partners agree to admit Maria Cruz as a partner with 1/3 in the capital and profits and losses upon investment of 30,000.
Required:
Question 1: Determine the Capital Account balance after admission of Cruz
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