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.
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.
Transcribed Image Text:A, B and C formed a partnership. Their contributions are as follows:
A
в
Cash
80,000
20,000
200,000
Equipment
Totals
160,000
80,000
180,000
200,000
Additional information:
• Although C has contributed the most cash to the partnership, he did not have the full amount of P200,000
available and was forced to borrow P80,000.
• The equipment contributed by B has an unpaid mortgage of P40,000, the repayment of which is assumed
by the partnership.
The partners agreed to equalize their interest. Cash settlements among the partners are to be made
outside the partnership.
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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