Division of Profits (6 items x 3 points)

The capital accounts of Jann, Jinn, and Junn are as follows:

Jann, CapitalJinn, Capital Junn, Capital

DrCrDrCrDrCr

2/13,0001/1 15,0004/19,0001/1 30,00011/139,5001/1 35,000

4/19,0007/1 15,5006/137,000

The net income for the year was P27,000.

Requirements: Show how the net income will be divided under each of the following methods and give the entry to record the distribution of profits.

1. Equally

2. 60% to Jann, 30% to Jinn and 10% to Junn

3. 1/9 to Jann, 3/9 to Jinn and 5/9 to Junn

4. 3:5:2 for Jann, Jinn and Junn, respectively

5. Using the beginning capital ratio

6. Using the ending capital ratio