Item No. 15 is based on the following information: Gua, Ay, and Dee are partners with average capitals of P 300,000, P 200,000, P 500,000, respectively during 200D. The partners are entitled to salaries of P 20,000 each plus 10% interest on their average capital. After deducting the salaries and interest, the residual profit is to be evenly shared. During the year 200D, the partnership incurred a loss of P 20,000. 15. What would happen to Dee's capital at the end of 20OD? a. Increase by P 10,000. Decrease by P 8,000. C. b. Decrease by P 10.000 Docro
Item No. 15 is based on the following information: Gua, Ay, and Dee are partners with average capitals of P 300,000, P 200,000, P 500,000, respectively during 200D. The partners are entitled to salaries of P 20,000 each plus 10% interest on their average capital. After deducting the salaries and interest, the residual profit is to be evenly shared. During the year 200D, the partnership incurred a loss of P 20,000. 15. What would happen to Dee's capital at the end of 20OD? a. Increase by P 10,000. Decrease by P 8,000. C. b. Decrease by P 10.000 Docro
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 59P
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Transcribed Image Text:Item No. 15 is based on the following information:
Gua, Ay, and Dee are partners with average capitals of P 300,000,
P 200,000, P 500,000, respectively during 200D. The partners are entitled to
salaries of P 20,000 each plus 10% interest on their average capital. After
deducting the salaries and interest, the residual profit is to be evenly shared.
During the year 200D, the partnership incurred a loss of P 20,000.
15. What would happen to Dee's capital at the end of 20OD?
a. Increase by P 10,000.
c. Decrease by P 8,000.
b. Decrease by P 10,000.
d. Decrease by P 2,000.
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