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 theiraverage 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 topartners.

AA BB CC Interest on Partners' Capital 47,250 23,865 16,235…

Answered: AA, BB and CC are partners with average…

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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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.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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