G, E and N are partners with average capital balances during 2020 of P400,000, P200,000 and P150,000respectively. Partners receive 10% interest on their average capital balances. After deducting salaries ofP100,000 to G and P50,000 to E the residual profit and loss is divided equally. In 2020 the partnershipsustained a P99,000 loss after interest and salaries to partners.By what amount should G's capital account change?A. 107,000 C. 32,000B. 67,000 D. 17,000
G, E and N are partners with average capital balances during 2020 of P400,000, P200,000 and P150,000respectively. Partners receive 10% interest on their average capital balances. After deducting salaries ofP100,000 to G and P50,000 to E the residual profit and loss is divided equally. In 2020 the partnershipsustained a P99,000 loss after interest and salaries to partners.By what amount should G's capital account change?A. 107,000 C. 32,000B. 67,000 D. 17,000
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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G, E and N are partners with average capital balances during 2020 of P400,000, P200,000 and P150,000respectively. Partners receive 10% interest on their average capital balances. After deducting salaries ofP100,000 to G and P50,000 to E the residual profit and loss is divided equally. In 2020 the partnershipsustained a P99,000 loss after interest and salaries to partners.By what amount should G's capital account change?A. 107,000 C. 32,000B. 67,000 D. 17,000
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