. The partnership agreement of Hi and Rap provides that interest at 14% per year is to be credited to each partner on the basis of weighted average capital balances. A summary of Rap capital account for the year ended December 31, 2015, is as follows: Balance, January 1 P210,000
. The partnership agreement of Hi and Rap provides that interest at 14% per year is to be credited to each partner on the basis of weighted average capital balances. A summary of Rap capital account for the year ended December 31, 2015, is as follows: Balance, January 1 P210,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7. The partnership agreement of Hi and Rap provides that interest at 14% per year is to be
credited to each partner on the basis of weighted average capital balances. A summary
of Rap capital account for the year ended December 31, 2015, is as follows:
Balance, January 1 P210,000
Additional investment, July 1 60,000
Withdrawal, August 1 (22,500)
Balance, December 31 P247,500
What amount of interest should be credited to Rap’s capital account for 2015?
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