The partnership agreement of Du-sik and Hye-Jin provides for salary allowances of P45,000 to Du-sik and P35,000 to Hye-Jin, with the remaining income or loss to be divided equally. During the year, Du- sik and Hye-Jin each withdraw cash equal to 80% of their salary allowances. If partnership net income is P100,000, Du-sik's equity in the partnership would * increase more than Hye-Jin's. decrease more than Hye-Jin's. O increase the same as Hye-Jin's. decrease the same as Hye-Jin's.
The partnership agreement of Du-sik and Hye-Jin provides for salary allowances of P45,000 to Du-sik and P35,000 to Hye-Jin, with the remaining income or loss to be divided equally. During the year, Du- sik and Hye-Jin each withdraw cash equal to 80% of their salary allowances. If partnership net income is P100,000, Du-sik's equity in the partnership would * increase more than Hye-Jin's. decrease more than Hye-Jin's. O increase the same as Hye-Jin's. decrease the same as Hye-Jin's.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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Transcribed Image Text:The partnership agreement of Du-sik
and Hye-Jin provides for salary
allowances of P45,000 to Du-sik and
P35,000 to Hye-Jin, with the
remaining income or loss to be
divided equally. During the year, Du-
sik and Hye-Jin each withdraw cash
equal to 80% of their salary
allowances. If partnership net income
is P100,000, Du-sik's equity in the
partnership would *
increase more than Hye-Jin's.
O decrease more than Hye-Jin's.
increase the same as Hye-Jin's.
O decrease the same as Hye-Jin's.
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