1. The accounting for the assets and liabilities of a partnership business is different from that of a sole proprietorship or a corporation. 2. A partnership is relatively easy to form but also easy to dissolve. 3. Mr. A contributed land with historical cost of PIM and fair value of P2M to a partnership business. Mr. A's contribution shall be valued at PIM in the partnership books. 4. A bonus given to a partner is treated as a reduction to the capital account(s) of the other partner(s). 5. Ms. B contributed equipment with carrying amount of P100 and fair value of P200 to a partnership. No bonus is given to any partner. In the partnership's books, equipment is debited for P200 but B's capital account is credited for P100. 6. Mr. C contributed land with fair value of P1M to a partnership. The land has an unpaid mortgage of P.2M which the partnership agreed to assume. The valujtion of Mr. C s net contribution is P1.2M. Fact pettern: Mr. D and Ms. E formed a partnership, D contributed 200 , while E contributed P100. The partners respective interests in the partnership are 60% and 40%. The initial credits to the partners' capital accounts are to be adjusted using the bornus method to melect the partners' respective interests. 8. The bonus given to E is P40. Fect petiera: Miw and Pie agreed to form a partnership. Fiw contributed eash of Pap while Pie will be ameributing her evpertise. The partiership a preement sipalates that Prw and Fe shall have equal intrrests in Fact putfern: Mr. D and Ms. E formed a partnership. D contributed P200, while E contributed P100. The partners respective interests in the partnership are 60 \% and 40%. The initial credils to the partmers' capital accounts are to be adjusted using the bonus method to reflect the partners' respective interests. 7. The balance of D's capital account after the formation is P1E0. 8. The bonus given to E is P40. Facf fidifter: Fw and The agreed to form a partnerstupi. Fiw contributed cash of P200 while Phe will be contributing her expertise. The partmership agreement stipulates that Piw and Pre shall have eyual interests in 16 Chuplet 1 both the initial capital of the partnerihip and in subseqtient partnership profits and losses. 9. The cash contribution of Fiw shall be debited for P200 but the net credit to Piw's capital account shall be P100. 10. Immediately after partnership formation, the balance of Rie's capital account is zero