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Question - Manuel and Li are partners who share profits and losses equally. Each has a capital balance of P40,000 and P50,000, respectively. They agreed to admit Jem as a new partner upon investment of land costing P50,000 but which is appraised at P60,000. Profits and losses are to be shared equally after the admission of Jem. What is the capital balance of Manuel, Li and Jem in the partnership?
A. P40,000, P50,000 and P60,000 respectively.
B. P40,000, P50,000 and P50,000 respectively
C. 46,667 each
D. P50,000 each
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