A and B are partners with the following contributions: Partner A, P300,000 and Partner B, P200,000. They share in the profit and loss of 40% and 60% respectively. Partner B's capital account had a net decrease of P120,000 during the year 2021. During 2021, B withdrew P350,000 (charged against his capital account) and with additional investment in the form of equipment with a book value of P 90,000 and a fair value of P80,000. Determine the profit/loss of the AB Partnership for the year 2021.

A and B are partners with the following contributions: Partner A, P300,000 and Partner B, P200,000. They share in the profit and loss of 40% and 60% respectively. Partner B's capital account had a net decrease of P120,000 during the year 2021. During 2021, B withdrew P350,000 (charged against his capital account) and with additional investment in the form of equipment with a book value of P 90,000 and a fair value of P80,000. Determine the profit/loss of the AB Partnership for the year 2021.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter11: Investor Losses

Section: Chapter Questions

Problem 49P

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