3. A and B agreed to form a partnership. A contributed P40,000 cash while B contributed equipment with fair value of P100,000. However due to the expertise that A will be bringing to the partnership, the partners agreed that they should initially have an equal interest in the partnership capital. Requirement: Provide the journal entry to record the initial investments of the partners.
3. A and B agreed to form a partnership. A contributed P40,000 cash while B contributed equipment with fair value of P100,000. However due to the expertise that A will be bringing to the partnership, the partners agreed that they should initially have an equal interest in the partnership capital. Requirement: Provide the journal entry to record the initial investments of the partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3. A and B agreed to form a
partnership. A contributed P40,000
cash while B contributed equipment
with fair value of P100,000. However
due to the expertise that A will be
bringing to the partnership, the
partners agreed that they should
initially have an equal interest in the
partnership capital. Requirement:
Provide the journal entry to record the
initial investments of the partners.
Option 1
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