DBM, MGX and SPV decided to form a partnership. They are to engage in the business of selling computers and related gadgets. DBM contributed cash of 700,000. MGX contributed a house and lot which he inherited from his grandfather three years ago. At the time of inheritance, the property was valued at PHP 1,575,000 for transfer tax purposes. A week before the partnership was formed, several buyers indicated their intention to buy the property for PHP 2,187,500. SPV, being a computer science graduate, is to contribute his skills and knowledge to a partnership. They agreed that SPV is to be given 20% share in the partnership profits.

Prepare journal entries to record the formation of the partnership.