Reference no: EM132839554

Vita Plus Partnership the year ended December , appear below:

Sales P300,000

Less: Cost of Goods Sold 190,000

Gross Profit P110,000

Less: Operating Expenses 30,000

Net Income P 80,000

Additional Information:

1. Melon and Dalandan began the year with capital balances of P40,800 and P112,000, respectively.
2. On April 1, Melon invested an additional P15,000 into the partnership and on August 1, Dalandan invested an additional P20,000 into the partnership.
3. Throughout 2007, each partner withdrew P400 per week in anticipation of partnership net income. The partners agreed that these withdrawals are not to be included in the computation of average capital balances for purposes of income distribution.

Melon and Dalandan have agreed to distribute partnership net income according to the following plan:

                                                                                                   MELON                       DALANDAN

Interest on average capital balances                                   6%                       6%

Bonus of net income before the bonus but after interest on average capital balances 10%

Salaries                                                                       P25,000                 P30,000

Residual (if positive)                                                           70%                      30%

Residual (if negative)                                                          50%                       50%

Problem 1: The share of Melon and Dalandan on the net income, respectively is: