The total capital balance after partnership remain same 7,500,000
(3,000,000 + 4,500,000).
The total capital balance after partnership remain same 7,500,000
(3,000,000 + 4,500,000).
So total capital balance of partnership after admission by marshall is 7,500,000.
Capital share of marshall will be = (7,500,000/3) = 25,00,000. |
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Percentage of marshall share in company's profit = (1/3*100) = 33.33%. |
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REQUIRED:
1. What is the combined gain realized by Manuel and Marcus upon the sale of a portion of their interest in the partnership?
A. 400,000
B. 300,000
C. 200,000
D. 100,000
E. not given
2. What is the gain realized by Manuel upon the sale of a portion of his interest in the partnership to Marshall?
A. 130,000
B. 110,000
C. 100,000
D. 80,000
E. not given
3. What is the gain realized by Marcus upon the sale of a portion of his interest in the partnership to Marshall?
A. 130,000
B. 110,000
C. 100,000
D. 80,000
E. not given
Extracted text: Manuel and Marcus are partners with the following capital balances as at June 30, Multiple Choice - III 20xx with their respective profit and loss ratio: Capital P3,000,000 P4,500,000 · Profit and Loss Ratio Mamuel 40 % Marcus 60.% On July 1, 20xx Marshall is admitted to the partnership when he purchased proportionate interest from Manuel and Marcus in the net assets and profits of the partnership for P2,700,000. As a result Marshall acquired 1/3 interest in the net assets and profits of the firm.