How much is peter capital balance as of december

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Asher and Peter formed a partnership on October 1, 2020. Asher invested P200,000 while Peter invested P300,000. They agreed that the residual profits and losses are to be shared in a 2 : 3 ratio after monthly salary allowances of P24,000 and P30,000 are allowed to partners Asher and Peter, respectively. They agreed as well that 10% interest will be provided on their respective beginning capital. The drawing accounts of Asher and Peter have debit balances of P22,000 and P18,000 respectively. Net income for the period ending December 31, 2020 amounted to P150,000. (Ignore income tax).

Problem 1: How much is Peter's capital balance as of December 31,2020 as shown in the Statement of Partners' Equity?

Reference no: EM132864714

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