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  3. erna faith, and gaye invest p19,200, p14,400 and p

ERNA FAITH, and GAYE invest P19,200, P14,400 and P12,000 respectively, in a partnership on June...

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Accounting

ERNA FAITH, and GAYE invest P19,200, P14,400 and P12,000 respectively, in a partnership on June 30, 2020. They agree to divide net income or loss as follow:

a. Interest at 10% on beginning capital account balances

b. Salaries of P4,800, P3,840 and P2,880, respectively to ERNA, FAITH, and GAYE, respectively.

c. Remaining net income or loss is divided equally

d. A minimum of P8,640 of income is guaranteed to GAYE regardless of the results of operation.

3. If the net income for the year ended June 30,2020 before interest and salary allowances to partners was P21,120 the amount of the net income credited to ERNA is:

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