A, B and C have capital of $120,000, $70,000, and $60,000 respectively.The partners share profit and loss in the agreed ratio of 40/30/30.D joins the partnership with $80,000 in exchange for 20% interest in capital and 20% interest in profit and loss.The existing assets of the original partnership are undervalued by $40,000.The original partners share balance of profit and loss in proportion to the original percent.
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Instructions: Calculate the capital balances for each individual in the new partnership assuming bonus and good will method:

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The Answer of A, B and C have capital of $120,000, $70,000, and $60,000 respectively.The partners share profit and loss in the agreed ratio of 40/30/30.D joins the partnership with $80,000 in exchange for 20% interest in capital and 20% interest in profit and loss.The existing assets of the original partnership are undervalued by $40,000.The original partners share balance of profit and loss in proportion to the original percent.
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Instructions: Calculate the capital balances for each individual in the new partnership assuming bonus and good will method:

A, B and C Have Capital of $120,000, $70,000, and $60,000