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AA and BB are partners with capital accounts that had the following transactions during 2022: AA BB Debit Credit Debit Credit Beginning balance, January 1

AA and BB are partners with capital accounts that had the following transactions during 2022:

AA

BB

Debit

Credit

Debit

Credit

Beginning balance, January 1

P270,000

P280,000

February 28

P80,000

March 1

120,000

April 30

160,000

June 1

P100,000

August 1

140,000

September 30

40,000

October 31

40,000

The partnership agreement provides for the following:

  1. The interest of 9% is to be provided to AA
  2. Salaries of P4,000 is to be given to BB per quarter
  3. A bonus of 25% is to be given to AA based on net income after interest and salaries
  4. The remaining balance is to be allocated on a ratio of 40:60.

The income summary account has a credit balance of P1,050,000 before profit distribution. BB has a Drawing account amounting to P40,000 which is a withdrawal made by BB in anticipation of future profits on July 1, 2022.

How much is the share of AA in the partnership profits for 2022?

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