Brenda, Baxter and Ben are independent website developers who had been trading in active opposition to one another for some years. They decide to form a partnership, Triple B Web Devel­opers, as from 1 January 2025. The agreement set out the following basic arrangements.

1. Brenda to contribute \($16\) 000 in cash, computers valued at \($20\) 000, and debtors of \($24\) 000.
2. Baxter to contribute a lease of premises used by him, such a lease to be regarded as having a capital value of \($25\) 000, computers of \($20\) 000 and \($12\) 000 in cash.
3. Ben to contribute computers valued at \($27\) 500 and to act as managing partner at a salary of \($40\) 000 per year.
4. Interest for the period is to be allowed partners at the rate of 8% p.a. on beginning capital but is not charged on drawings.
5. Profits or losses to be shared in the same proportions as capital contributed.

Required

1. Prepare the journal entries necessary to open the records of the partnership. (Ignore GST.)

Assuming in the first year that the partnership makes a profit of \($130\) 000, show how this profit would be allocated to partners.