1. 2. An ostensible partner is unknown to the public that he/she is a partner.

Both statements are false

2. A firm has two partners: Jim and Bill. Jim owns 60% of the partnership and Bill owns 40%. In which of
the following transactions will the partnership be held responsible for an individual partners’ actions?
Bill signs a contract to buy furniture for official use in the partnership

3. If a partner’s capital account is credited with the amount that he or she contributed in cash, which of the
following financial statements will be affected?
The statement of partners’ equity

4. Edwin and Darren have decided to form a partnership. Edwin contributes P80,000 cash and
merchandise inventory with a current market value of P20,000. Darren contributes a parcel of land
which was acquired two years ago at P100,000 but with a current value of P130,000. If Darren is to
make additional cash investment to have a 60% in the business, how much cash should he invest?
P20,000