NAME: SECTION: SCORE: PROFESSOR: Problem #3 Rules for the Distribution of Profits or Losses Lerin and Digao established a general professional partnership by investing P200,000 and P350,000, respectively. a. Loss is P330,000 and the partners have no written partnership agreement. b. Profit is P330,000 and the partnership agreement states that the partners share profits and losses on the basis of their capital contributions. C. Loss is P385,000 and the partnership agreement states that the partners share profits on the basis of their capital contributions. d. Profit is P625,000. The first P300,000 is shared on the basis of their capital contribution. The next P225,000 is based on partner's service, with Lerin receiving 30% and Digao receiving 70%. The remainder is shared equally. Required: 1. Determine the partners' share in the profit or loss for each of the situations above. 2. Using the information in situation d, journalize the entries to close the (a) income summary and (b) partners' drawing accounts assuming that during the year Lerin -and Digao withdrew cash of P310,000 and P250,000, respectively. Indicate the amount of increase or decrease in each partner's capital balance, and the overall effect on partnership capital