3. If agreement is based on Average Capital: Nadine Lysa Profit Ratio 8. Share on Profit
3. If agreement is based on Average Capital: Nadine Lysa Profit Ratio 8. Share on Profit
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 12DQ
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Transcribed Image Text:Problem: Nadine and Lysa formed a partnership on Jan. 01, 2019. Below the
details of their capital accounts for 2019:
Nadine, Capital
Lysa, Capital
1-Jul
200,000
500,000
1-Jan
300,000
300,000
31-Dec
150,000
450,000
On the same year, the partnership generated a profit of P200,000.
Required: Determine the Profit Ratio and the share on profits for Nadine and
Lysa on the following agreements:
A. If agreement is based on Capital Contributions:
Nadine
Lysa
1
Profit Ratio
4
Share on Profit
B. If agreement is based on Average Capital:
Nadine
Lysa
5
Profit Ratio
Share on Profit
2.
CO
3.
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