Problem 37: Emma, Betty and Carol formed ABC Partnership on January 1, 2011 Their capital contributions are: . . Emma Betty Carol Cash 100,000 120,000 300,000 Inventory 20,000 Equipment 50,000 The partners agree to share profit and loss on a ratio of 30:30:40 to Emma, Betty and Carol, respectively. Although Carol contributed the biggest cash contribution, she did not have the entire amount and was required to borrow P150,000 from the bank. The equipment contributed by Betty has unpaid liability of P20,000 which was assumed by the partnership The partners agree to have equal capital interest in the partnership. A cash settlement was made by the partners outside partnership. Which of the following statement is correct? a. The journal entry in the books of the partnership to record the interest of Emma is credit P120,000 b. Betty should pay Carol P70,000 Carol should receive cash of P110,000 d. Emma will pay P20,000 cash to Betty and Carol C