Problem 3-8 Bacani, Badeo, and Barte formed the partnership on January 1,2012, investing P1,000,000 P500,000 and P400,000, respectively. The partners agree to the following distribution of profits. 1. Annual salaries are to be allowed to partners as follows: Bacani-96,000, Badeo-120,000 and Barte-120,000.2. Interest is to be allowed on partners' capital as of the beginning of each year at the rate of 6%.3. Bacani, the managing partner, is to be allowed a bonus of 20% of the profit after treating as expenses the partners' salaries, interest and bonus. 4. Profits and losses after partners' salaries, interest and bonus are to be divided equally. Problem 3-9 Instructions 1. Determine the new profit and loss ratio of the old partners. 2. Prepare the schedule showing the division of the corrected partnership profit to the partners.

Operations The partnership fiscal year is the calendar year. Activities of the partnership for 2012 2013 and 2014 are summarized below: . 2012 2013 Profit or loss before interest, salaries 2014 And bonus (P 42,000) P300,192 Cash withdrawals: P470,000 Bacani P 72,000 P139,600 P163,200 Badeo 86,800 163,200 195,200 Bartc 96,000 177,200 169,600 Instructions: Prepare a statement of changes in partners' equity covering the three-year period ending December 31, 2014. Problem 3-9 (Correction of Partnership Profit) Balmes, Bamban, and Buela are partners sharing profits on a 5:3:2 ratio. On January 2014, Bagnio was admitted into the partnership with a 20% share in the profits. The old partners continue to participate in profits proportionate to their original ratios. For the year 2014, the partnership books showed a profit of P400,000. It was disclosed however, that the following errors were made. 2013 2014 Accrued expenses not recorded at year-end P 24,000 P 62,000 Inventory overstatement Purchases not recorded, for which goods have been 40,000 received and included in the inventory 30,000 Income received in advance not adjusted 18,000 Unused supplies not taken up at year-end Instructions: 1 . Determine the new profit and loss ratio of the old partners. 2. - Prepare a schedule showing the division of the corrected partnership profit to the partners