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Question - Presented below is the condensed balance sheet of the partnership of MA, TA, and COW who share profits and losses in the ratio of 2:3:5. respectively:
Cash 100,000
Other assets 350,000
Total 450,000
Liabilities 50,000
MA, Capital 110.000
TA, Capital 120,000
COW, Capital 170,000
The partners agree to sell to KA 10% of their respective capital and profit and loss interests for a total payment of P50,000. The payment by KA is to be made directly to the individual partners using the book value approach.
Determine the capital balance of TA after admission of the new partner.
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