Exercise 3-2Bernal, Capitaldr cr 10/31 - 60,000 1/1- 360,000 5/31 - 100,000Burgos, Capitaldr cr6/30 - 80,000 1/1- 440,000 10/31- 140,000 Instructions: Prepare the entry to record the allocation of the partnership profit individual capital accounts under each of the following assumptions:1. Each partner receives 8% interest on the beginning of the year capital balances and the remainder is divided between Bernal and Burgos in the ratio of 3:1, respectively. 2. Bernal and Burgos are given annual salaries of 70,000 and 130,000 respectively, 12% interest in the end of year capital balances, and the remainder is divided equally. 3. Bernal and Burgos are given salaries 45,000 and 85,000 respectively, 12% interest on average capital balances and remainders 4. Bernal and Burgos salaries of 50,000 and 100,000 respectively. 10% interest on average capital balances, and the remainder divided 40% to Bernal and 60% to Burgos. 5. Each partner receives 8% interest on beginning of the year capital balances and a salary of 50,000, Bernal receives a bonus of 10% of profit after deducting interest and salaries, and the remainder is divided in the ratio of 2:3.

Problem 3-1 (Division of Profit under Various Assumptions) The capital accounts of Bondoc and Barba at the end of the fiscal year 2014 area follows: Bondoc, Capital P210,000 January 1 Balance 90,000 May Investment October 1 Withdrawal P60,000 Barba, Capital P150,000 January 1 Balance April Withdrawal P30,000 The partnership profit for the year ended December 31, 2014 is P300,000. Instructions: Give the journal entries to record the transfer of profit to the capital accounts under each of the following assumptions: (Show the procedure used in calculating the respective amounts as an explanation for each entry). 1 . Profit is divided 60% to Bondoc and 40% to Barba. 2. Profit is divided in the ratio of capital balances at the beginning of the period. 3. Profit is divided in the ratio of average capital. 4. Interest at 8% is allowed on average capital and the balance of profit is divided equally. 5. Salaries of P60,000 and P48,000 are allowed to Bondoc and Barba, respectively, and the balance of profit is divided in the ratio of capital balances at the end of the period. 6. Bondoc is allowed a bonus of 33 1/3% of profit after bonus, and the balance of the profit is divided in the ratio of the average capital. Problem 3-2 (Division of Profit under Various Assumptions) Bernal and Burgos formed a partnership on January 1, 2014. The changes in their respective capital balances during the year ended December 31, 2014 are presented on the next page. During the year, the partnership earned a profit of P350,000