Reference no: EM132667603

Francis, Chis, and Ivan are to form a partnership. Francis is to contribute cash of P350,000; Chris, P35,000; and Ivan, P350,000. Francis and Ivan are not to actively participate in the business, but will refer customers, while Chris will manage the firm. Chris has to give up his present job, which gives him an annual income of P420,000 the partners decided that profits % losses should be shared equally.

Problem 1: Upon formation, partner's capital balances would respectively be:

a. P245,000; P245,000; and P245,000

b. P350,000; P35,000; and P350,000

c. P350,000; P455,000: and P350,000

d. P385,000: P385,000; and P385,000