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What amount should U capital account change

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Problem 1: U, B and M are partners with average capital balances during 2019 of P360,000, P180,000 and P120,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P90,000 to U and P60,000 to M, the residual profit or loss is divided equally. In 2019, the firm sustained a P99,000 loss before interest and salaries to partners. By what amount should U's capital account change?

a. P105,000 decrease
b. P33,000 decrease
c. P21,000 increase
d. P126,000 increase

Reference no: EM132713286

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