What amount shall be debited to john interest

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Problem 1: Partners John and Paul divide profits and losses 6:4 with capital balances of P 540,000 and P670,000 respectively. They agreed to admit Peter by his purchase of one-fourth of John's interest for P300,000. They agreed to write off Accounts Receivable worth P 10,600. Fixed assets were under-depreciated by P 30,000. Payments of accounts payable in the amount of P 8,600 was not posted to the payable account. What amount shall be debited to John's interest?

a. P127,620

b. P128,910

c. P130,200

d. P300,000

Reference no: EM132935448

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