Questions 8 and 9 are based on the following:

On December 31 ,2018 A, B and C formed a partnership wherein A contributed P4,800,000 for 20% interest in the partnership, B Contributed P14,400,000 for a capital credit of P12,000,000. After closing of accounting books, B and C withdrew the following amounts respectively: P1,200,000 and P1,440,000. Profit and Loss arrangement are agreed asfollows:

• • Annual salary of P60,000, 48,000 and 36,000 respectively
• • The remainder will be divided in the ratio of 2:3:5

On December 31 ,2019 the capital balance of A is 4,836,000.

8. What is the net income / (net loss) of the partnership for the year ended December 31, 2019?

A.

24,000

B.

(239,856)

C.

1,704,000

D.

1,488,000

9. What is the capital balance of C on December 31, 2019?

A.

4,836,000

B.

10,728,000

C.

2,424,000

D.

5,736,000