Amber and Berta share profits and losses equally after a 10% interest on their average capital balances. Consider additional capital contributions and permanent withdrawals as made at the end of the...

 Amber and Berta share profits and losses equally after a 10% interest on their average capital balances. Consider additional capital contributions and permanent withdrawals as made at the end of the month. The total net income after tax for 2019 is P320,000.

Direction:Give the entries to record the distribution based on the following two independent cases:

a.) Partners' drawings are not used in determining the average capital balances.

b) All changes in capital and drawing should be considered in determining the average capital balances.

Extracted text: 11. Amber and Berta share profits and losses equally after a 10% interest on their average capital balances. Consider additional capital contributions and permanent withdrawals as made at the end of the month. Total net income after tax for 2019 is P320,000. Amber P 105,000 20,000 Berta January 1 capital balances Additional investment of capital: March 15 Permanent withdrawal of capital: April 12 Drawings for each on October 28 P 140,000 ( 15,000) 40,000 50,000 Direction: Give the entries to record the distribution based on the following two independent cases: a) Partners' drawings are not used in determining the average capital balances. b) All changes in capital and drawing should be considered in determining the average capital balances.