4. A and B's partnership agreement stipulates the following • Annual salary allowance of P100,000 for A. • Bonus to A of 10% of the profit after partner's salaries and bonus. • The partners share in...

4. How much is the change in A's capital amount? This is not a part of our exam but is included in the reference book and I want to review its answer.

Extracted text: 4. A and B's partnership agreement stipulates the following • Annual salary allowance of P100,000 for A. • Bonus to A of 10% of the profit after partner's salaries and bonus. • The partners share in profits and losses on a 60:40 ratio. The partnership incurred loss of P40,000 before deduction for salaries. How much is the change in A's capital account? a. 56,000 decrease b. 15,000 decrease c 16,000 increase d. 9,000 increase