5. AA, BB and CC are partners with average capital balances during 2021 of P360,000, P180,000, and P120,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P90,000 to AA and P60,000 to CC the residual profit and loss is divided equally. In 2021 the partnership sustained a P99,000 loss before interest and salaries to partners. By what amount should AA's capital
5. AA, BB and CC are partners with average capital balances during 2021 of P360,000, P180,000, and P120,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P90,000 to AA and P60,000 to CC the residual profit and loss is divided equally. In 2021 the partnership sustained a P99,000 loss before interest and salaries to partners. By what amount should AA's capital
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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Transcribed Image Text:5. AA, BB and CC are partners with
average capital balances during 2021 of
P360,000, P180,000, and P120,000,
respectively. Partners receive 10%
interest on their average capital
balances. After deducting salaries of
P90,000 to AA and P60,000 to CC the
residual profit and loss is divided
equally. In 2021 the partnership
sustained a P99,000 loss before
interest and salaries to partners. By
what amount should AA's capital
account changes? *
a. P21,000 increase
O b. P33,000 decrease
O c. P105,000 decrease
O d. P126,000 increase
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