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8. Partner A first contributed P50,000 of capital into an existing partnership on March 1, 20x1. On June 1 20xl, Partner A contributed another P20,000. On September 1, 20x1, Partner A withdrew P15,000 from the partnership. Withdrawal in excess of PI0,000 is charged to the partner's capital account. The annual interest rate applicable to capital contributions is 12%. How much is the interest on the weighted average capital balance of Partner A in 20x1? a 6,200 b. 6,667 e. 7,567 d. 8,993

8. Partner A first contributed P50,000 of capital into an existing partnership on March 1, 20x1. On June 1 20xl, Partner A contributed another P20,000. On September 1, 20x1, Partner A withdrew P15,000 from the partnership. Withdrawal in excess of PI0,000 is charged to the partner's capital account. The annual interest rate applicable to capital contributions is 12%. How much is the interest on the weighted average capital balance of Partner A in 20x1? a 6,200 b. 6,667 e. 7,567 d. 8,993

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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8. Under Millan book. This is not a part of our exam but is included in the reference book and I want to review its answer.

Partner A first contributed P50,000 of capital into an existing partnership on March 1, 20x1. On June 1 20x1, Partner A contributed another P20,000. On September 1, 20x1, Partner A withdrew P15,000 from the partnership. Withdrawal in excess of P10,000 is charged to the partner's capital account. The annual interest rate applicable to capital contributions is 12%. How much is the interest on the weighted average capital balance of Partner A in 20x1? a 6,200 b. 6,667 c. 7,567 d. 8,993
Transcribed Image Text:Partner A first contributed P50,000 of capital into an existing partnership on March 1, 20x1. On June 1 20x1, Partner A contributed another P20,000. On September 1, 20x1, Partner A withdrew P15,000 from the partnership. Withdrawal in excess of P10,000 is charged to the partner's capital account. The annual interest rate applicable to capital contributions is 12%. How much is the interest on the weighted average capital balance of Partner A in 20x1? a 6,200 b. 6,667 c. 7,567 d. 8,993
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