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Juan and Pedro’s partnership agreement shows that they will receive a salary of P 150,000 and P 100,000, respectively. Should there be a remainder, such will be divided based on their average capital balances. Below shows information in their respective capital balances: Juan, capital ending balance – P 3,000,000 Debits: June 1 - P 500,000 Credits: March 30 – P 1,000,000 Credits: October 30 – P 500,000   Pedro, capital ending capital balance – P 4,500,000 Credits: May 1 – P 1,000,000 Credits: August 31 – P 1,000,000 Income for the year amounted to P 300,000. How much profit will be distributed to Juan

Juan and Pedro’s partnership agreement shows that they will receive a salary of P 150,000 and P 100,000, respectively. Should there be a remainder, such will be divided based on their average capital balances. Below shows information in their respective capital balances: Juan, capital ending balance – P 3,000,000 Debits: June 1 - P 500,000 Credits: March 30 – P 1,000,000 Credits: October 30 – P 500,000   Pedro, capital ending capital balance – P 4,500,000 Credits: May 1 – P 1,000,000 Credits: August 31 – P 1,000,000 Income for the year amounted to P 300,000. How much profit will be distributed to Juan

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Juan and Pedro’s partnership agreement shows that they will receive a salary of P 150,000 and P 100,000, respectively. Should there be a remainder, such will be divided based on their average capital balances. Below shows information in their respective capital balances:

Juan, capital ending balance – P 3,000,000
Debits: June 1 - P 500,000
Credits: March 30 – P 1,000,000
Credits: October 30 – P 500,000
 
Pedro, capital ending capital balance – P 4,500,000
Credits: May 1 – P 1,000,000
Credits: August 31 – P 1,000,000

Income for the year amounted to P 300,000. How much profit will be distributed to Juan?

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