AA, BB and CC are partners with average capital balances during 20xx of P472,500, P238,650 and P162,350, respectively. The partners receive 10% interest on their erage capital balances; after deducting salaries of P122,325 to AA and P82,625 to CC, e residual profits or loss is divided equally. In 20xx, the partnership had a net loss of P125,624 before the interest and salaries to partners

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The same information in Number 5, except the partnership had a loss of P125,624 after the interest and salaries to partnerts, by what amount should BB’s capital account change – increase (decrease)?

AA, BB and CC are partners with average capital balances during 20xx of P472,500,
P238,650 and P162,350, respectively. The partners receive 10% interest on their
average capital balances; after deducting salaries of P122,325 to AA and P82,625 to C,
5.
the residual profits or loss is divided equally.
In 20xx, the partnership had a net loss of P125,624 before the interest and salaries to
partners.
Transcribed Image Text:AA, BB and CC are partners with average capital balances during 20xx of P472,500, P238,650 and P162,350, respectively. The partners receive 10% interest on their average capital balances; after deducting salaries of P122,325 to AA and P82,625 to C, 5. the residual profits or loss is divided equally. In 20xx, the partnership had a net loss of P125,624 before the interest and salaries to partners.
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