1. Day and Night contributed the following in forming a partnership business: Day Night Cash 280,000 Accounts receivable 100,000 Inventory 160,000 Building (at carrying amount) 760,000 Total 540,000 760,000 Additional information: Only 60% of the accounts receivable is recoverable. The net realizable value of the inventory is P120,000. Day acquired the inventory on account; the partnership will assume the unpaid balance of P60,000. The building has a fair value of P900,000. Requirement: Provide the journal entry. 4. Use the information in problem 1. Day and Night agreed to have equal credits to their capital accounts. Cash settlement is to be made between the partners for the adjustments on their capital balances. Requirement: Describe how the cash settlement should be made and how would it be accounted for in the partnership books