Un, Balaba, and Monta are partners with average capital balances during 2020 of P360,000, P180,000, and P120,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P90,000 to Un and P60,000 to Monta, the residual profit or loss is divided equally. In 2020, the firm sustained a P99,000 loss before interest and salaries to partners. By what amount should Un's capital account change? P105,000 decrease P21,000 increase a. C. b. P33,000 decrease d. P126,000 increase
Un, Balaba, and Monta are partners with average capital balances during 2020 of P360,000, P180,000, and P120,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P90,000 to Un and P60,000 to Monta, the residual profit or loss is divided equally. In 2020, the firm sustained a P99,000 loss before interest and salaries to partners. By what amount should Un's capital account change? P105,000 decrease P21,000 increase a. C. b. P33,000 decrease d. P126,000 increase
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:17. Un, Balaba, and Monta are partners with average capital balances during 2020 of
P360,000, P180O,000, and P120,000, respectively. Partners receive 10% interest on
their average capital balances. After deducting salaries of P90,000 to Un and
P60,000 to Monta, the residual profit or loss is divided equally. In 2020, the firm
sustained a P99,000 loss before interest and salaries to partners. By what amount
should Un's capital account change?
P105,000 decrease
P33,000 decrease
a.
С.
P21,000 increase
b.
d.
P126,000 increase
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