B1,B2,B3 are partners with average capital balances during 2021 of P945,000 P477 300 and P324,700, respectively. The partners received 10% interest on their average capital balances salaries of P244 650 to B1 and P165 250 to B3: any residual profit or loss is divided equally In 2021, the partnership had a net loss of P251,248 before the interest and salaries to partners What is the change in the capital balances of B1? Place a parenthesis if your answer is a decrease
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is 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, drawings of a partner, etc.
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