Exercise 35. Distribution of Net Income Luz, Olivia, Vera, and Ethel are partners of LOVE Trading sharing profits in the ratio of 3:4:221. At the end of the accounting period, the partnership's operation resulted a net profit of P450,000. Record the journal entry to distribute net income of the partnership. Exercise 36. Computing Average Capital and Distribution of Net Income Maria and Martha are partners in the M & M Ltd. During the last calendar year, the partnership earned P120,000 net income. Shown below are the summary of the capital accounts of each partner as they appear in the general ledger of the partnership: Maria Jan.1 Balance P 200,000 Mar.1 50,000 Aug.31 100,000 Oct.1 20,000 Dec.1 150,000 Martha Jan.1 Balance P 400,000 Feb.1 10,000 May 31 50,000 July 1 30,000 Nov.1 100,000 Maria and Martha agreed on the following profit distribution: a. 12% interest is given on the basis of the peso month average capital balance of each partners; b. annual salaries allowed to Maria P60,000 and to Martha P80,000; and c. the balance to be shared as follows: 1/3 to Maria and 2/3 to Martha. 1. Compute the average capital of Maria. 2. Compute the average capital of Martha. 3. Compute for the share in the net income of Maria and Martha