Reference no: EM133145529

Question - A, B and C are partners in ABC Partnership. On July 1 ,2019, D,E,F were admitted to the partnership by contributing cash of 75,000 each so that D,E,& F will each have 10% interest in the partnership as well as in the share in the profits and losses. From January 1, 2019 to July 1, 2019, the partnership business incurred a net loss of P 15,000. This net loss was not yet closed to the capital accounts as of July 1, 2019. At the time of admission of the new partners, all the assets of the partnership are fairly valued. The partner's capital balance as of January 1, 2019 with their profit or loss ratio are as follows: A, Capital - 250,000 (20%) B, Capital - 300,000 (50%) C, Capital - 275,000 (30%) The partner's will retain their profit and loss ratio even after admission of D, E and F.

Required -

1. How much is the total partnership capital after the admission of D, E & F?

2. What is the balance of the capital account of B after the admission of D, E & F?

3. How much is the total bonus given by partner B to the new partners at the time of their admission to the partnership?

4. What is the balance of the capital account of A after the admission of D, E & F?