A and B formed a partnership. The partnership agreement stipulates the following: • Annual salary allowances of P10,000 for A and P40,000 for B. • Bonus to A of 10% of the profit after partner's salaries but before bonus. The partners share profits and losses on a 60:40 ratio. During the period the partnership incurred a loss of P20,000 before deduction for salaries. By what amount did B's capital account change?
A and B formed a partnership. The partnership agreement stipulates the following: • Annual salary allowances of P10,000 for A and P40,000 for B. • Bonus to A of 10% of the profit after partner's salaries but before bonus. The partners share profits and losses on a 60:40 ratio. During the period the partnership incurred a loss of P20,000 before deduction for salaries. By what amount did B's capital account change?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PB: The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a...
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