Mallari and Chua

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.