Item 4-8 is based on the following data: Mr. Eduardo Rubillos was already in business. Due to financial constraint, he decided to accept the proposal of Mr. Andreau Torralba, thereby the latter is willing to contribute cash equal to % of the former's capital balance after the adjustments. The balance sheet accounts of Mr. Eduardo Rubillos prior to the inception of the partnership revealed the following balances: Cash in bank Accounts Receivable 60,000 75,000 Allowance for Bad Debts 2,000 Merchandise 200,000 Equipment 250,000 Accumulated Depreciation 50,000 Accounts Payable 40,000 E. Rubillos, Capital ? The following were the agreed adjustments: Equipment should have a fair market value of P210,000. b. The Account Receivable should have an 85% probability of collection. Q-4. How much is the capital of Mr. Rubillos prior to partnership formation? c. P533,000 a. P463,000 b. P493,000 Q-5. At what amount the equipment should be recorded in the book of the partnership? a. P200,000 b. P210,000 c. P250,000 Q-6. What is the amount of the Allowance for Bad Debts after effecting the adjusting entry? a. P7,250 b. P9,250 c. P11,250 Q-7.How much is the capital balance of Mr. Rubillos after the adjustment? a. P475,750 b. P490,250 c. P493,750 Q-8.How much cash that Mr. Torralba contributes to the partnership? a. P237,875 b. P245,125 c. P246,875 d. Some other answer d. Some other answer d. Some other answer d. Some other answer d. Some other answer