The partnership agreement of Hi and Rap provides that interest at 14% per year is to be credited to each partner on the basis of weighted average capital balances. A summary of Rap capital account for the year ended December 31, 2015, is as follows: 

Balance, January 1                                              P210,000 

Additional investment,  July 1                           60,000 

Withdrawal, August 1                                         (22,500) 

Balance, December 31                                       P247,500 

-What amount of interest should be credited to Rap’s capital account for 2015?

Answer rating: 100% (QA)

Calculation of Weighted Average Capital Calculation of Weighted Averag... View the full answer