Castillo, Labasan and Hollanes are partners with average capital balances during 2021 of P472,500, P238,650 and P162,350 respectively. The partners receive 10% interest in their average capital balances after deducting salaries of P122,325 to Castillo and P82,625 to Hollanes, the residual profit or loss are divided equally. In 2021, the partnership had loss of P125,624 before interest and salaries to partners. By what amount should Castillo’s and Hollanes capital account change - increase(decrease)? A. Castillo - 30,267; Hollanes (40,448) B. Castillo - 29,476; Hollanes 17,536 C. Castillo - (40,844); Hollanes 31,235 D. Castillo - 28,358; Hollanes 32,458
Castillo, Labasan and Hollanes are partners with average capital balances during 2021 of P472,500, P238,650 and P162,350 respectively. The partners receive 10% interest in their average capital balances after deducting salaries of P122,325 to Castillo and P82,625 to Hollanes, the residual profit or loss are divided equally. In 2021, the partnership had loss of P125,624 before interest and salaries to partners. By what amount should Castillo’s and Hollanes capital account change - increase(decrease)? A. Castillo - 30,267; Hollanes (40,448) B. Castillo - 29,476; Hollanes 17,536 C. Castillo - (40,844); Hollanes 31,235 D. Castillo - 28,358; Hollanes 32,458
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 43P
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Question
Castillo, Labasan and Hollanes are partners with average capital balances during 2021 of
P472,500, P238,650 and P162,350 respectively. The partners receive 10% interest in their average
capital balances after deducting salaries of P122,325 to Castillo and P82,625 to Hollanes, the residual
profit or loss are divided equally. In 2021, the
salaries to partners. By what amount should Castillo’s and Hollanes capital account change -
increase(decrease)?
A. Castillo - 30,267; Hollanes (40,448)
B. Castillo - 29,476; Hollanes 17,536
C. Castillo - (40,844); Hollanes 31,235
D. Castillo - 28,358; Hollanes 32,458
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ISBN:
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Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT