Two Sole Proprietors Form a Partnership Calaguas and Dela Cruz formed a partnership and invested the following assets and liabilities:Calaguas:Fair Market ValueCarrying ValueCash300,000300,000Land450,000280,000Dela Cruz: Cash100,000100,000Building600,000520,000Mortgage Payable400,000400,000 What is the opening journal entry in the books of the partnership?

when Partnership is formed, Assets invested other than cash and liabilities brought in by the…

Answered: Calaguas and Dela Cruz formed a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

Two Sole Proprietors Form a Partnership

Calaguas and Dela Cruz formed a partnership and invested the following assets and liabilities:

Calaguas:	Fair Market Value	Carrying Value
Cash	300,000	300,000
Land	450,000	280,000

Dela Cruz:
Cash	100,000	100,000
Building	600,000	520,000
Mortgage Payable	400,000	400,000

What is the opening journal entry in the books of the partnership?

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions