Jen, Raks, and Fred are partners with average capital balances during 20x9 of P945,000, P477,300, and P324,700, respectively. The partners receive 10% interest on their average capital balances; after deducting salaries of P244, 650 to Jen and P165,250 to Fred, the residual profits or loss is divided equally. In 2019, the partnership had a net loss of P251,248 before the interest and salaries to partners. By what amount should Jen's and Fred's capital account change increase (decrease) ? Change in the Capital of Jen should be answered first, followed by the change in Fred's Capital
Jen, Raks, and Fred are partners with average capital balances during 20x9 of P945,000, P477,300, and P324,700, respectively. The partners receive 10% interest on their average capital balances; after deducting salaries of P244, 650 to Jen and P165,250 to Fred, the residual profits or loss is divided equally. In 2019, the partnership had a net loss of P251,248 before the interest and salaries to partners. By what amount should Jen's and Fred's capital account change increase (decrease) ? Change in the Capital of Jen should be answered first, followed by the change in Fred's Capital
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 15CE
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Transcribed Image Text:Jen, Raks, and Fred are partners with average capital balances during 20x9 of
P945,000, P477,300, and P324,700, respectively. The partners receive 10% interest on
their average capital balances; after deducting salaries of P244, 650 to Jen and
P165,250 to Fred, the residual profits or loss is divided equally.
In 2019, the partnership had a net loss of P251,248 before the interest and salaries
to partners.
By what amount should Jen's and Fred's capital account change increase (decrease)?
Change in the Capital of Jen should be answered first, followed by the change in
Fred's Capital
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