Winky and Pinky are friends since High School and after graduation they formed the WP Partnership. They agreed to provide an interest at 12% per year to each partner on the basis of weighted-average capital balances?
The invested capital of Winky remained unchanged for the year, P600,000. A summary of Pinky's capital account for the year ended December 31, 2021 were as follows: Capital Balance, January 1, P380,000; Additional investment, July 1, P240,000; Withdrawal, August 1, P60,000 and the Capital Balance on December 31, 2021 was P560,000. How much was the average capital of Pinky?

Answer rating: 100% (QA)

To calculate the weightedaverage capital balance of Pinky we need to take into account the changes i... View the full answer