Max and Kenneth are partners in an eatery business with capital balances of P250,000 and P150,000 respectively. Partnership agreement calls for:

12% interest on capital,

P6,000 monthly salary to Max as managing partner,

Remaining profit to be divided equally.

Make a journal entry to record the distribution for each of the following independent assumptions:

d)Result of a six-month operation was a net profit of P110,250 before a 30% tax.

e) Result of a three-month operation was a net loss of P75,000.