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Question - Apple, Samsung, Lenovo, and Huawei are partners with interests of P60,000 (30%); P65,000 (20%); P26,000 (10%) and P90,000 (40%) to Apple, Samsung, Lenovo, and Huawei each, respectively. Assume that the partners admit Oppo into the partnership. Oppo is to invest P50,000 and to purchase 1/4 of the capital balances of Samsung and Lenovo for P25,000 with the assets being adjusted. Oppo is to have 20% share in the new partnership and a 15% share in the profits and losses. The agreed capital of the partnership after the admission of Oppo is P310,000. Determine the capital balance of Apple after the admission of Oppo.
Financial Statement Analysis and Preparation
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