2. Business partnersBaliva, Masi, and Romalati have a partnership agreement that outlines a detailed formula for sharing profits and losses. Baliva, Masi, and Romalati earn annual salaries of $60 000, $70 000, and $80 000 respectively. They also earn a fixed percentage of interest on their capital balances which are $50 000, $50 000, and $70 000 respectively. Any remaining income is allocated using an income ratio of 30%, 30% and 40% respectively. Calculate the net income allocation and record the journal entry under the following unrelated situations:

(a) net income of $400 000, and 7% on capital balances

(b) net income of $50 000, and 5% on capital balances.

Numbers #619 X14 21% A HA 20:25 Q DE . . . all U4A3 Assignment Partnership Income - 24148 100% Ev T E M + Question 1 Question 2 General Journal Page CALCULATIONS Question 2 Particulars Debit Credit Scenario (a) Baliva Masi Romalati Total PDF X 1 Balance in Capital account, January 1 Income Ratio Net Income Income Distribution Salary Interest Allowance Net Income allocated PRIOR to ratio application Net Income to be allocated based on income ratio Share of income based on income ratio Total allocation of net income Scenario (b) Baliva Masi Romalati Total Balance in Capital account, January 1 Income Ratio Net Income Income Distribution Salary Interest Allowance Net Income allocated PRIOR to ratio application Net Income to be allocated based on income ratio Share of income based on income ratio Total allocation of net income 4meit 4u (RXTRS) 3u English