Un, Balaba, and Monta are partners with average capital balances during 2020 of P360,000, P180,000, and P120,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P90,000 to Un and P60,000 to Monta, the residual profit or loss is divided equally. In 2020, the firm sustained a P99,000 loss before interest and salaries to partners. By what amount should Un's capital account change? P105,000 decrease P21,000 increase a. C. b. P33,000 decrease d. P126,000 increase

Un, Balaba, and Monta are partners with average capital balances during 2020 of P360,000, P180,000, and P120,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P90,000 to Un and P60,000 to Monta, the residual profit or loss is divided equally. In 2020, the firm sustained a P99,000 loss before interest and salaries to partners. By what amount should Un's capital account change? P105,000 decrease P21,000 increase a. C. b. P33,000 decrease d. P126,000 increase

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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