On April 1, 2021, Odette and Lance formed a partnership with each contributing the following assets: Odette Lance Cash 120,000 80,000 Machinery and equipment 100,000 300,000 Building 900,000 Furniture and fixtures 40,000 The building is subject to a mortgage loan of 320,000, which is to be assumed by the partnership. Required: Prepare the journal entries for the investment of partners.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is 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, drawings of a partner, etc.
On April 1, 2021, Odette and Lance formed a
Odette Lance
Cash 120,000 80,000
Machinery and equipment 100,000 300,000
Building 900,000
Furniture and fixtures 40,000
The building is subject to a mortgage loan of 320,000, which is to be assumed by the partnership.
Required: Prepare the
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