Problem 4 - Messrs. Santos, Torres and Usman formed a partnership to engage in the business of merchandising. Capital balances at the beginning of the year were: Santos Torres Usman P400,000 350,000 250,000 (40%) (35%) (25%) The net income to be distributed is P330,000. The partnership agreement provided for: a. Salary to Partner Santos at P20,000 a month; b. Interest to be computed at the end of the year, at 10% on capital investment balances at the beginning of the year, c. Any net income or loss still undistributed, to be distributed according to their profit and loss ratio Required: a. Compute for the respective shares of the partners in the profit (schedule of profit distribution) b. Provide journal entries. C. Show all computations in good form