What should be the capital balances of a and b and c

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D wants to purchase one-fourth interest in the partnership of A, B, and C. The three partners agree to sell A one-fourth of their respective capital and profit and loss interests in exchange for a total payment of P 40,000. The partner's capital accounts and the profit and loss ratio immediately before the admission of D are as follows:

Capital     Accounts       Profit and Loss Ratio

A             P 80,000       60%

B           40,000           30%

C            20,000            10%

Problem 1: All assets and liabilities are fairly valued and implied goodwill is to be recorded upon the admission of D. Immediately after D's admission, what should be the capital balances of A, B, and C respectively?

Reference no: EM132625259

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