Question
A and B formed a partnership. The following are their contributions: A B Cash 500,000 Accounts receivable 100,000 Building 700,000 Total 600,000 700,000 A, capital
A and B formed a partnership. The following are their contributions: A B Cash 500,000 Accounts receivable 100,000 Building 700,000 Total 600,000 700,000 A, capital 600,000 700,000 600,000 700,000 B, capital Total Additional information: The accounts receivable includes a $20,000 account that is deemed uncollectible. The building is over-depreciated by P50,000. The building has an unpaid mortgage P100,000, which is assumed by the partnership. Requirement: Provide the journal entry to record the contributions of the partners in the partnership books
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