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Question - Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnership's formation:
Contributed by Roberts Smith
Cash P 20,000 P30,000
Inventory 15,000
Building 40,000
Furniture and equipment 15,000
The building is subject to a mortgage of P10,000, which the partnership has assumed. The partnership agreements also specifies that profits and losses are to be distributed evenly. What amounts should be recorded as capital for Roberts and Smith at the formation of the partnership?
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