Partners De Guzman and Tugade receive a salary allowance of P30,000 and P70,000, respectively, and share the remainder equally. If the company earned P40,000 during the period, what is the effect on Tugade’s capital? a.P30,000 decrease b.P40,000 increasec. c.P50,000 increased. d.P90,000 increase

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 2EA: The partnership of Chase and Chloe shares profits and losses in a 70:30 ratio respectively after...
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Partners De Guzman and Tugade receive a salary allowance of P30,000 and P70,000, respectively, and share the remainder equally. If the company earned P40,000 during the period, what is the effect on Tugade’s capital?

a.P30,000 decrease

b.P40,000 increasec.

c.P50,000 increased.

d.P90,000 increase

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