1) What is the share in net income of Lucia and Jacinta for the year ended December 31, 2021?

2) How much is the capital balances of the partners for the year ending December 31, 2021?

Exercise 3 - 9. Net Income distribution and computation of partner's capital balance On July 1, 2020, Lucia and Jacinta formed LJ Partnership with initial investment of P1,500,000 and P1,000,000, respectively. Lucia is the managing partner of the business. The articles of co-partnership provides that profit or loss shall be distributed accordingly: 12% interest on original capital contributed by the partners. Monthly salary of P40,000 and P20,000 respectively for Lucia and Jacinta. Lucia will be given bonus of 5% of net income of the business. The remainder shall be distributed in ratio of 4:6 to Lucia and Jacinta respectively. For the year ended December 31, 2021, the partnership reported net income of P1,200,000