Irish and Irvin are partners with capital of P240,000 and P120,000 respectively. They share profits in the ratio of 3:1. The partners agree to admit Iram. Iram purchased 1/3 interest in the firm. Iram pays the partners P180,000 which is divided between them in proportion to the equities given up. Before Iram's admission, inventory was understated thus adjustments was recorded on the firm's books. How much is did inventory increased? 180,000 135,000 540,000 125,000