These problems are lifted from the actual CPA Board Exam.
Problem I
Mark, Nark and Oark are partners sharing profit in a 5:3:2 ratio, and with capital balances of P 95,000, P 80,000, and P 60,000, respectively, on December 31, 2015. The partners decided to admit Park as a new partner on January 1, 2016. Park will contribute cash of P 80,000 to the partnership and also pay P 15,000 for 15% of Nark's share. Park is to have a 20% interest share in profits. After the admission of Park, the total capital will be P 330,000 and Park's capital will be P 70,000
