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23 August, 09:43

Franco and Jason share income and losses in a 2:1 ratio after allowing for salaries of $14,100 and $42,900, respectively. If the partnership suffers a $15,300 loss, by how much would Jason's capital account increase

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  1. 23 August, 10:02
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    The answer is $37,800

    Explanation:

    Franco and Jason share profit and loss in the ratio 2:1.

    2 is for Franco and 1 is for Jason.

    The addition of the two ratios is 3.

    Jason's capital account will be his salary minus his share from the loss.

    Jason's share from the loss is:

    1/3 x $15,300

    =$5,100

    Jason's salary is $42,900

    Therefore, Jason's capital account will increase by:

    $42,900 - $5,100

    $37,800
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