3.14 Cue and Peed entered into a partnership on March 1, 200A. TheyT agreed that Cue, the managing partner was to receive a salary10 neallowance of P 24,000 per year and a bonus of 10% of the net profitafter the salary allowance but before the bonus. The balance is to be distributed in the ratio of their initial capital. Selected ledgeraccounts on December 31, 200A prior to adjustments showed thefollowing balances:Salesgns 22ol bns P 300,000ge gnisdao3,000 ollo)visoo 180,0001sini s10 48,000Sales Returns290swzunod ts Purchases 1Operating Expenses bs la01Stni o1o 48,000200,00000020,0001o g2290x Cue CapitalCue DrawingPeed Capital 0Peed DrawingInventories at year-end werebns I100,00010,000as follows: Officesupplies, P 810 and merchandise, P 50,000. Prepaid insurance of0P 1,200 and accrued expenses of P 400 are to be recognized.Depreciation of P 4,000 is to be provided.REQUIRED: Prepare the Statement of Partners ' Equity for the 10-month period ended December 31, 200A.iD d

Partnership Contract: Partnership contract is an agreement initiated between the partners who…

3.14 Cue and Peed entered into a partnership on March 1, 200A. They agreed that Cue, the managing partner was to receive a salary allowance of P 24,000 per year and a bonus of 10% of the net profit after the salary allowance but before the bonus. The balance is to b e distributed in the ratio of their initial capital. Selected ledger accounts on December 31, 200A prior to adjustments showed the M. following balances: oi Sales inssonge gohsla 2201 bas P 300,000 2990swol 3,000 ollo 0130uod visoo 180,000oo0 Sales Returns Purchases pouna Operating Expenses bs 12s1Stai sTo 48,000 boolle d Cue Capital Cue Drawing Peed Capital Peed Drawing 200,000 100020,000 bns Jor 000 100,000 10,000 as follows: Office Inventories at year-end were supplies, P 810 and merchandise, P 50,000. Prepaid insurance of P 1,200 and accrued expenses of P 400 are to be recognized. Depreciation of P 4,000 is to be provided. REQUIRED: Prepare the Statement of Partners' Equity for the 10- osn1 month period ended December 31, 200A. v