Question:

During the year ended February 28,2020, the partnership had net sales of P500,000, cost of goods sold of P250,000, and total operating expenses of P100,000 (including partner's salaries expense but excluding interest on partner's average capital account balances). Each partner's made monthly cash drawings in accordance with the partnership contract. What are the capital balances of the partners on February 28,2020?

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James P20,000 10% 40% Lebron Annual salary P25,000 Annual Interest on average capital 10% Remainder 60% The annual salary was to be withdrawn by each partner in 12 monthly instalments. During the year ended February 28,2018, the partnership had net sales of P500,000, cost of good sold of P250,000, and total operating expenses of P100,000 (including partner's salaries expense but excluding interest on partner's average James P20,000 10% 40% Lebron Annual salary P25,000 Annual Interest on average capital 10% Remainder 60% The annual salary was to be withdrawn by each partner in 12 monthly instalments. During the year ended February 28,2018, the partnership had net sales of P500,000, cost of good sold of P250,000, and total operating expenses of P100,000 (including partner's salaries expense but excluding interest on partner's average