PARTNERSHIP

1. 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
B, capital		700,000
Total	600,000	700,000

Additional information:

• The accounts receivable includes a 20,000 account that is deemed uncollectible.
• The building is over-depreciated by 50,000.
• The building has an unpaid mortgage 100,000, which is assumed by the partnership.

Requirement: Provide the journal entry to record the contributions of the partners in the partnership books.