During 2021, Jungkook and Jimin maintained average capital balances of in their partnership of P200,000 and P150,000, respectively. Both partners receive 10% interest on average capital balances, and residual profit or loss is to be divided equally. Partnership profit before interest was P10,000. By what amount should Jimin's capital account change for the year? O 2,500 decrease O 2,500 increase O 15,000 decrease O 15,000 increase

During 2021, Jungkook and Jimin maintained average capital balances of in their partnership of P200,000 and P150,000, respectively. Both partners receive 10% interest on average capital balances, and residual profit or loss is to be divided equally. Partnership profit before interest was P10,000. By what amount should Jimin's capital account change for the year? O 2,500 decrease O 2,500 increase O 15,000 decrease O 15,000 increase

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PB: The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a...

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