On December 31, 2019, Lilo, Stitch, and Tom are partners with capital account balances of P95,000,...

Transcribed Image Text:

On December 31, 2019, Lilo, Stitch, and Tom are partners with capital account balances of P95,000, P80,000, and P60,000, respectively, and share profits and losses in the ratio 5:3:2. The partners decided to admit Jerry as a new partner by contributing cash of $80,000 to the partnership and by paying P10,000 for 15% of Stitch's share. Jerry would have a 20% share in the profit and loss ratio. After the admission, the partnership has a total capital balance of P330,000 and a P70,000 balance in Jerry, Capital. The capital balance of Stitch immediately after the admission of Jerry is On December 31, 2019, Lilo, Stitch, and Tom are partners with capital account balances of P95,000, P80,000, and P60,000, respectively, and share profits and losses in the ratio 5:3:2. The partners decided to admit Jerry as a new partner by contributing cash of $80,000 to the partnership and by paying P10,000 for 15% of Stitch's share. Jerry would have a 20% share in the profit and loss ratio. After the admission, the partnership has a total capital balance of P330,000 and a P70,000 balance in Jerry, Capital. The capital balance of Stitch immediately after the admission of Jerry is

Answer rating: 100% (QA)

The detailed ... View the full answer