The following are the partnership agreement between partners Baby Love & Honey Sweet for their partnership’s profit distribution: A. Each partners shall be entitled for an annual salary of P50,000...

The following are the partnership agreement between partners Baby Love & Honey Sweet for their partnership’s
profit distribution:
A. Each partners shall be entitled for an annual salary of P50,000 each.
B. 15% Bonus of partnership profits after salaries to Honey Sweet being a managing partner.
C. 20% interest is given to both partners based on average capital ratio.
D. Residual profit and loss shall be distributed on the ratio 2:2
The ledgers of their capital balances are shown below:

 Baby Love

Debit:  July 1. P20,000

Credit: Jan 1. P80,000
               Oct 1. P40,000

Honey Sweet

Debit:  Oct 1. P10,000

Credit:  Jan 1. P120,000

               May 1. 30,000

The partnership profit for the year is P150,000 before distribution to partners

Required:

1. Prepare a Schedule for Profit Distribution.
2. Journal entry to record the distribution of profit to partners.