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Juan and Pedro have the following transactions during the year: Juan: Beginning capital – 01/01/2022 – 1,000,000 Debit - - 08/01/2022 – 300,000 Debit - - 09/01/2022 – 800,000 Credit - - 10/30/2022 – 900,000 Credit - - 04/01/2022 – 70,000 Pedro: Beginning capital – 01/01/2022 – 700,000 Debit - - 09/01/2022 – 100,000 Debit - - 05/30/2022 – 90,000 Credit - - 11/30/2022 – 500,000 Credit - - 06/30/2022 – 100,000 What is the ratio of Juan’s share in income if the partnership calls for profit sharing equivalent to the average capital ratio?

Juan and Pedro have the following transactions during the year: Juan: Beginning capital – 01/01/2022 – 1,000,000 Debit - - 08/01/2022 – 300,000 Debit - - 09/01/2022 – 800,000 Credit - - 10/30/2022 – 900,000 Credit - - 04/01/2022 – 70,000 Pedro: Beginning capital – 01/01/2022 – 700,000 Debit - - 09/01/2022 – 100,000 Debit - - 05/30/2022 – 90,000 Credit - - 11/30/2022 – 500,000 Credit - - 06/30/2022 – 100,000 What is the ratio of Juan’s share in income if the partnership calls for profit sharing equivalent to the average capital ratio?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Juan and Pedro have the following transactions during the year:

Juan:
Beginning capital – 01/01/2022 – 1,000,000
Debit - - 08/01/2022 – 300,000
Debit - - 09/01/2022 – 800,000
Credit - - 10/30/2022 – 900,000
Credit - - 04/01/2022 – 70,000

Pedro:
Beginning capital – 01/01/2022 – 700,000
Debit - - 09/01/2022 – 100,000
Debit - - 05/30/2022 – 90,000
Credit - - 11/30/2022 – 500,000
Credit - - 06/30/2022 – 100,000

What is the ratio of Juan’s share in income if the partnership calls for profit sharing equivalent to the average capital ratio?

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