A. On March 1, 2021, Ram and Dawn formed a partnership with cash contributions of P200,000 and P100,000, respectively. In addition to Ram's cash contribution, he contributed an office equipment costing P15,000, but with an agreed valuation of P10,000. On the other hand, Dawn contributed a piece of land costing P150,000, but with an agreed valuation of P200,000. The land has been mortgaged in a bank for P100,000. Instructions: Record the contribution of Ram and Dawn under the following assumptions: 1. The mortgage balance was not assumed by the partnership. 2. The mortgage balance was assumed by the partnership.
A. On March 1, 2021, Ram and Dawn formed a partnership with cash contributions of P200,000 and P100,000, respectively. In addition to Ram's cash contribution, he contributed an office equipment costing P15,000, but with an agreed valuation of P10,000. On the other hand, Dawn contributed a piece of land costing P150,000, but with an agreed valuation of P200,000. The land has been mortgaged in a bank for P100,000. Instructions: Record the contribution of Ram and Dawn under the following assumptions: 1. The mortgage balance was not assumed by the partnership. 2. The mortgage balance was assumed by the partnership.
Chapter21: Partnerships
Section: Chapter Questions
Problem 31P
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Please answer competely options and 2
Transcribed Image Text:Problem 1-1 (Individuals with no existing business)
A. On March 1, 2021, Ram and Dawn formed a partnership with cash contributions of
P200,000 and P100,000, respectively. In addition to Ram's cash contribution, he
contributed an office equipment costing P15,000, but with an agreed valuation of
P10,000. On the other hand, Dawn contributed a piece of land costing P150,000, but
with an agreed valuation of P200,000. The land has been mortgaged in a bank for
P100,000.
Instructions: Record the contribution of Ram and Dawn under the following assumptions:
1. The mortgage balance was not assumed by the partnership.
2. The mortgage balance was assumed by the partnership.
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