A and B agrees that 10% interest per annum is to be credited to each of them as partners on the basis of average capital balances. A summary of B's capital account for the year December 31, 2020 follows: Balance, January 1 P280,000 Additional investment, July 1 80,000 Withdrawal, August 1 (30,000) The amount of interest that should be credited to B's capital is? *

A and B agrees that 10% interest per annum is to be credited to each of them as partners on the basis of average capital balances. A summary of B's capital account for the year December 31, 2020 follows: Balance, January 1 P280,000 Additional investment, July 1 80,000 Withdrawal, August 1 (30,000) The amount of interest that should be credited to B's capital is? *

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

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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