A and B formed a partnership. The partnership agreement stipulates the following: • Annual salary allowances of P10,000 for A and P40,000 for B. • Bonus to A of 10% of the profit after partner's salaries but before bonus. The partners share profits and losses on a 60:40 ratio. During the period the partnership incurred a loss of P20,000 before deduction for salaries. By what amount did B's capital account change?

A and B formed a partnership. The partnership agreement stipulates the following: • Annual salary allowances of P10,000 for A and P40,000 for B. • Bonus to A of 10% of the profit after partner's salaries but before bonus. The partners share profits and losses on a 60:40 ratio. During the period the partnership incurred a loss of P20,000 before deduction for salaries. By what amount did B's capital account change?

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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