WITH SOLUTION

1. On December 1, 2015, EE and FF formed a partnership, agreeing to share for profits and losses in the ratio of 2:3, respectively. FF invested P30,0000 cash. The land was sold for P50,000 on the same date, three hours after formation of the partnership. How much should be the capital balance of EE right after the formation.

2. On March 1, 2015, II and JJ formed a partnership with each contributing the following assets:

__II__ ___JJ___

Cash.......................................................... P300,000 P700,000

Machinery and equipment................... P250,000 P750,000

Building.................................................... - P2,250,000

Furniture and Fixtures.......................... P100,000 -

The building is subject to mortgage loan of P800,000, which is to be assumed by the partnership agreement provides that II and JJ share profits and losses 30% and 70% respectively. On March 1, 2015 the balance in JJ's capital account should be:

3. The same information above, except that the mortgage loan is not assumed by the partnership. On March 1, 2015 the balance in JJ's capital account should be: