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Please help me solve this one. I need the answer asap. PROBLEM 1: 4. A and B agreed to form a partnership. The contributions of
Please help me solve this one. I need the answer asap.
PROBLEM 1: 4. A and B agreed to form a partnership. The contributions of the partners are as follows: A B Cash 300,000 Inventory 10,000 Land 200,000 Equipment 25,000 Additional information: Half of the inventory is unpaid. The partnership agreed to assume the related accounts payable. The land has a fair value of P350,000 and is subject to a mortgage of P50,000. However, B agreed to settle the mortgage personally. Required: a. Determine the correct valuations of the partners' contributions in the partnership books of accounts. b. Provide the journal entry. PROBLEM 2 A and B decided to form a partnership. A will contribute cash of P300,000, while B contributed a machine worth P850,000 but with a current fair value of P950,000. The partners agreed that since A will use his talents and skills in the business, A and B shall have a 60:40 interest respectively. The agreements made by the partners shall be reflected in their initial credits. Required: a. Determine the correct valuations of the partners' contributions in the partnership books of accounts. b. Provide the journal entry. POBLEM 3 A and B formed a partnership. The following are their capital contributions: A B Cash 200,000 Accounts receivable 50,000 Equipment 350,000 Total 250,000 350,000 Additional information: The accounts receivable includes a P15,000 account that is deemed uncollectible. The equipment is over-depreciated by P25,000. The equipment was obtained by B through financing. The related loan payable has an unpaid balance of P125,000 which the partnership assumes on repaying. Question: Which partner has the higher capital credit, and by how muchStep by Step Solution
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