Reference no: EM132907654

A.P/L ratio A,Capital - 150,000 30% C, Capital - 200,000 50% T, Capital - 120,000 20% A, C and T are partners in ACT Partnership. On June 1 ,2019, I and V were admitted to the partnership by paying 50,000 each so that I and V will both have 10% interest each in the partnership as well as in the share in the profits and losses. From January 1, 2019 to December 31,2019, the partnership business earned a profit of P 15,000.

The partner's capital balance as of January 1,2019 are as follows:

The partner's will retain their profit and loss ratio even after admission of I and V.

Problem 1. What are the balances of the capital accounts of A, C,T,I and V after the admission of I and V?

Problem 2. What are the balances of the capital account of A, C, T,I and V on December 31,2019?

Problem 3. Prepare the entries regarding the admission of I and V to the partnership.

Problem 4. What are the balance of of the capital accounts of A, C,T,I and V after the admission of I and V assuming I and V paid 50,000 each because the inventories are not fairly valued?

Problem 5. What are the balances of the capital account of A, C, T,I and V on December 31,2019 under the assumption in no. 4?