Holly, Molly and Ally formed a partnership on January 1, 2021, and contributed P 1,500,000;

P 2,000,000 and P 2,500,000, respectively. Their operating income is shared among partners as follows:

Salary, P 240,000 for Holly; P 180,000 for Molly and P 120,000 for Ally

Interest of 12% on the average capital during 2021 of the partners

The remainder in the ratio of 2:4:4 respectively

The operating income for the year ending December 31, 2021 amounted to P 1,760,000

Summary of transaction during 2021:

Holly contributed additional capital of P 300,000 on July 1 and made a drawing of

P 100,000 on October 1

Molly contributed additional capital of P 200,000 on August 1 and made a withdrawal of

P 100,000 on October 1

Ally made a drawing of P 300,000 on November 1