Topic: Partnership Operation

need solutions please

Answers: 5.C

Problem 5. A and B are partners engaged in a manufacturing business. Transactions affecting the partners' capital accounts in 20X1 are as follows: A Debit Credit Debit Credit Beg. Balance P 250,000 P 350,000 April 1 150,000 P 100,000 _June 30 P 125 000 250 000 Sept. 1 225,000 Oct. 1 350,000 The income summary has a debit balance of P225,000I. Agreement between A and B are as follows: 0 Interest on average capital at 8% 0 Salaries of P125,000 and P175,000 are given to A and B, rapecb'vely 0 Bonus to B at 25% of net income after deducting interest and salaries but before deducting bonus 9 Balance is to be divided equally How much is the net increasefdecrease in B\" capital account during 20X1? a. P518,000 b. P{82,000) c. P168,000 d. P(32,000) 200,000