The simple journal entries to record the partners’ contributions includea debit to mortgage payable for ₱40,000. a credit to loan payable for ₱80,000. a ₱60,000 credit to cash. a ₱60,000 debit to C’s capital account. A, B and C formed a partnership. Their contributions are as follows:AвCash80,00020,000200,000EquipmentTotals160,00080,000180,000200,000Additional information:• Although C has contributed the most cash to the partnership, he did not have the full amount of P200,000available and was forced to borrow P80,000.• The equipment contributed by B has an unpaid mortgage of P40,000, the repayment of which is assumedby the partnership.The partners agreed to equalize their interest. Cash settlements among the partners are to be madeoutside the partnership.

Introduction Partnership accounting Partners have to contribute in the partnership whether through…

The simple journal entries to record the partners’ contributions include a debit to mortgage payable for ₱40,000. a credit to loan payable for ₱80,000. a ₱60,000 credit to cash. a ₱60,000 debit to C’s capital account.

The simple journal entries to record the partners’ contributions include a debit to mortgage payable for ₱40,000. a credit to loan payable for ₱80,000. a ₱60,000 credit to cash. a ₱60,000 debit to C’s capital account.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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