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Question - Admission by Purchase of Interest - The capital accounts of Man and Mon Partnership on Sept. 30, 2016 were:
Man Capital (75% profit percentage) P140,000
Mon, Capital(25% profit percentage) 56,000
On October 1, Gal was admitted to a 35% interest in the partnership when he purchased 35% of each existing partner's capital for P100,000, paid directly to Man and Monte.
Required -
1. Journalize the entry to record the admission of Gal.
2. Determine the capital balances of Man, Mon and Gal after Gal's admission.
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