R and M are partners in a firm sharing profits equally. Their capital accounts as of December 31, 2017 showed balances of P60,000 and P50,000, respectively. Each partner also contributed P10,000 each....

R and M are partners in a firm sharing profits equally. Their capital accounts as of December 31, 2017 showed balances of P60,000 and P50,000, respectively. Each partner also contributed P10,000 each. The profits of the year 2017 amounted to P20,000, and the division of profits is as follows:

• The partners were entitled to interest on capitals at 6% based on beginning capital.


• The drawings of R and M for the year 2017 were P8,000 and P6,000, respectively. The interest on drawings was also to be charged at 2.5% p.a.


• R was entitled to salary of P5,000 and M, a salary of P2,000 for the whole year.


• The remaining balances are divided equally.

It was decided to make the necessary adjustments to record the above omissions. solve for the share in net income of M.