Exercise 3-3 (Division of profit; Interest on Average Capital and Salaries to Partners) The partnership of Benito and Bunye has the following provisions in the partnership agreement: 1. A partner earns 10% interest on the excess of his average capital over the other partner. 118 2. Benito and Bunye are allowed annual salaries of P300,000 and P200,000 respectively. 3. Any remaining profit or loss is to be divided in the ratio of 70:30. The average capital of Benito is P1,000,000 and that Bunye is P600,000. Instructions: Prepare a profit distribution schedule assuming the profit of the partnership is (a) P700,000; and (b) P400,000 Exercise 3-9 (Computation of Partnership Profit) Barte, a partner in the BBB Partnership, has a 25% participation in profit. Barte's capital account had a net decrease of P240,000 during the year of 2014. During 2014, Barte withdrew P520,000 (charged against his capital account) and invested in the partnership a property with a fair value of P100,000. Instructions: Determine the profit of the BBB Partnership for the year 2014