1. On January 1, 20x1, Mr. A and Ms. B formed a partnership. Mr. A contributed cash of P500,000 while Ms. B contributed a building with carrying amount of P400,000 and fair value of P800,000. The building has an unpaid mortgage of P200,000 which is not assumed by the partnership. Requirement: Provide the journal entry to record the contributions of the partners.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. On January 1, 20x1, Mr. A and Ms. B
formed a partnership. Mr. A
contributed cash of P500,000 while
Ms. B contributed a building with
carrying amount of P400,000 and fair
value of P800,000. The building has an
unpaid mortgage of P200,000 which is
not assumed by the partnership.
Requirement: Provide the journal entry
to record the contributions of the
partners.
Option 1
Clear selection
Transcribed Image Text:1. On January 1, 20x1, Mr. A and Ms. B formed a partnership. Mr. A contributed cash of P500,000 while Ms. B contributed a building with carrying amount of P400,000 and fair value of P800,000. The building has an unpaid mortgage of P200,000 which is not assumed by the partnership. Requirement: Provide the journal entry to record the contributions of the partners. Option 1 Clear selection
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