A and B formed a partnership. The partnership agreement stipulates the following: Annual salary allowances of P25,000 for A and P4,000 for B. Bonus to A of 10% of the

A and B formed a partnership. The partnership agreement stipulates the following: Annual salary allowances of P25,000 for A and P4,000 for B. Bonus to A of 10% of the profit after partner’s salaries and bonus. The partners share profits and losses on a 60:40 ratio. During the period, the partnership incurred loss of P10,000 before deduction for salaries. By what amount did A’s capital account change? a. Decreased by P1,600 b. Increased by P1,600 c. Decreased by P11,600 d. No change

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer