Kaye and Pore formed a partnership on January 1, 2021. Kaye invested P120,000 cash, inventory valued at P100,000 and automobile at P380,000. Pore invested P150,000 cash and an investment property valued at P850,000.

On November, 2024, the partnership reported a net loss of P60,000. The

partnership contract specified that income and losses were to be

allocated by allowing 10% interest on the original capital investment,

salaries of P20,000 to Kaye and P15,000 to Pore, and the remainder to

be divided in the ratio of 40:60.

On July 1, 2025, Farn, cousin of Kaye, was admitted in the partnership with a P250,000 cash investment. Farn was given 30% interest in the partnership because of his skills. The partners elect to use bonus method to record the admission. Any bonus should be divided in the old ratio of 40:60.

On June 30, 2026, the partnership reported net income of P450,000. The new partnership contract stipulated that income and losses were to be divided in fixed ratio of 20:50:30.

On December, 2027, Kaye withdrew from the partnership for personal reason. Kaye was given P180,000 cash and a P60,000 note receivable for his capital interest.

Required:

Prepare journal entries for each of the following events in chronological order. Show your computations before the journal entries.