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Question - On January 1, 2016, the partners admitted Durian as a new partner and according to their agreement Durian will contribute P80,000 in cash to the partnership and also pay P10,000 for 15% of Banana's share.
Durian will be given 20% share in the profits, while the original partners' share will be proportionately the same as before.
After the admission of Durian, the total capital will be P330,000 and Durian's capital will be P70,000.
Any difference between the actual contribution and the agreed capital will be treated as asset revaluation.
If the partnership before the admission of Durian has total liabilities of P70,000, how much is the total asset of the partnership after the admission of Banana?
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