1. (a) At the end of its first year of operstions on December 31, 2018. Triple O Partenership accounts show the following:-

Partner Capital Drawings

Paddy Onyango sh. 4.8 Million sh. 2.3 Million

Betty Odhiambo sh. 3.0 Million sh. 1.4 Million

Charles Ogeto sh. 2.5 Million sh. 1.0 Million

The capital balances represent each Partner's initial capital investment. Therefore, net income or net loss for 2018 has not been closed to the Partner's Capital Acoounts.

Required:-

(a) Journalize the entry to record the division of net income for the year 2018 under each of the following Independent Assumptions:-

(i) Net Income is sh. 30 Million, income is shared 6:3:1

(ii) Net Income is sh. 37 Million, Onyango and Odhiambo are given salary allowances of

sh. 1.5 million and sh. 1.0 Million respectively. The remainder is shared equally.

(iii) Net income is sh. 1.9 Million. Each partner is allowed interest of 10% on beginning capital balances. Onyango is given a sh. 1.2 Million salary allowance. The remainder is shared equally.

(b) Prepare a schedule showing the division of net income under assumption (iii) above.

(c) Prepare a Partner's Capital Statement / Statement of changes in Partner's Equity for the year under assumption (iii) above.