1. J to receive 10% of the net income up to P1,000,000 and 20% of the amount in excess thereof. ii. K and L each, are to receive 5% of the remaining income in excess of P1,500,000 after J's share as per above. iii Balance to be divided equally among the partners. For the year ended, the partnership realized a net income of P2,500,000 before distribution to partners. How much is the share of J? A. P1,300,000 B. P1,000,000 C. P1,080,000 D. P1,100,000 Problem C. Allie and Belinda formed a partnership with a capital contribution of P80,000 and P40,000 respectively. According to the partnership agreement, all profits will be distributed as follows: Allie will be allowed a monthly salary of P8,000 with P4,000 assigned to Belinda. The partners will be allowed with interest equal to 10% of the capital balance as of the first day of the year. Allie will be allowed a bonus of 10% of the net income after bonus. The remainder will be divided on the basis of the beginning capital for the first year and equally for the second year. Each partner is allowed to withdraw up to P4,000 a year. Assume that the net loss for the first year of operations is P6,000, the net income for the second year is P22,000 and that each partner withdraws the maximum amount from the business each period, what is the capital balance of Allie at the end of the second year? A. P73,900 B. P72,000 C. P105,900 D. P83,900 Quizzer: Ella and Veronica are partners engaged in a manufacturing business. Transactions affecting the partners' capital accounts in 2018 are as follows: Ella Veronica Debit Credit Debit Credit Beg. Balance P 50,000 P 70,000 April 1 30,000 P 20,000 June 30 P 25,000 50,000 Sept. 1 45,000 60,000 Oct. 1 70,000 40,000 At the end of the year, the income summary account has a debit balance of P45,000. The results of operations will be divided as follows: Interest on average capital at 8%. Salaries of P25,000 and P35,000 are given to Ella and Veronica, respectively. Bonus to Veronica at 25% of net income after deducting interest and salaries but before deducting bonus. Balance is to be divided equally. How much is the net increase/decrease in Veronica' capital account during 2018? A. P(6,400) B. P(16,400) C. P33,600 D. 1,400