Mallari and Chua are partners who share profits and losses in a ratio of 3:2, respectively. They have the
following capital balances on Sept. 30, 2020.
Mallari, Capital P 250, 000
Chua, Capital P 500, 000
The partners agreed to admit Palatino to the partnership.
REQUIRED: Calculate the capital balances of each partner after the admission of Palatino, assuming that
bonuses are recorded when appropriate for each of the following assumptions:
1. Palatino paid Mallari P 250, 000 for a 50% of his interest.
2. Palatino invested P 250, 000 for a one- fourth interest in the partnership.
3. Palatino invested P 250, 000 for a 30% interest in the partnership.
4. Palatino invested P 250, 000 for a 20% interest in the partnership.