F, G, and H are partners with average capital balances during 2020 of P 120,000, and P 60,000, and P 40,000, respectively. Partners receive 10 percent interest on their average capital balances. After deducting salaries of P 30,000 to F and P 20,000 to H, the remaining profit or loss is divided equally. In 2020, the partnership sustained a P 33,000 loss before interest and salaries to partners. By what amount should F’s capital account change?
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.
F, G, and H are partners with average capital balances during 2020 of P 120,000, and P 60,000, and P 40,000, respectively. Partners receive 10 percent interest on their average capital balances. After deducting salaries of P 30,000 to F and P 20,000 to H, the remaining profit or loss is divided equally. In 2020, the partnership sustained a P 33,000 loss before interest and salaries to partners. By what amount should F’s capital account change?
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