Problem 3-6 (Computation of Profit; Division of Profit: Ending Capital Balances) Rrenda and Brosas entered into a partnership on May 1, 2014, investing P625.000 and p275.000, respectively. It was agreed that Brenda, the managing partner, is to receive a salary of P150,000 per year and 10% of profit after adjustment for the salary, any remaining profit is to be divided in the ratio of original capital On December 31, 2014 account balances are as follows: Debit Credit 300,000 335,000 625,000 100,000 375,000 Accounts Payable Accounts Receivable Brenda, Capital Brenda, Drawing Brosas, Capital Brosas, Drawing Cash Furniture and Fixtures Operating Expenses Purchases Sales Sales Returns and Allowances 150,000 710,000 225,000 300,000 980,000 1,525,000 25,000 120 Chapter 3 - Partnership Operes Additional information as of December 31, 2014: Inventories: merchandise, P305,000; supplies, P12,500 Prepaid taxes and insurance, P5,000. Accrued expenses, P17,500. Depreciation on furniture and fixtures, 20% per year. Instructions: 1. Determine the profit or loss of the partnership. Income tax rate is 30% 2. Prepare a schedule showing the distribution of partnership profit or loss, 3. Determine the ending capital balances of the partners