EXERCISE 6. Journal Entries - Capital share different from capital contribution.On June 1, 2022, Al and Ace formed a partnership. Al contributed cash of P600,000, inventories of P100,000, and furniture and fixtures of P120,000.On the other hand, Ace contributed cash of P520,000, building of P330,000, and land of P200,000. The building was mortgaged for a loan amountingto P500,000 of which 70% had already been paid. The remaining balance would be assumed by the partnership. The partners agreed to share profitsand losses equally.Prepare and upload journal entries related to partnership formation, assuming:1. Each partner would be credited for the full amount of net assets invested2. Each partner initially should have equal interest in partnership capital. To ensure this, it was agreed that partner with a lower capital balance had toinvest additional cash.

Partnership is the relation between two or more partners who have agreed to share profit/loss of the…

ERCISE 6. Journal Entries - Capital share different from capital contrib June 1, 2022, Al and Ace formed a partnership. Al contributed cash of the other hand, Ace contributed cash of P520,000, building of P330,0 500,000 of which 70% had already been paid. The remaining balance losses equally. pare and upload journal entries related to partnership formation, assur Each partner would be credited for the full amount of net assets inves Each partner initially should have equal interest in partnership capital. invest additional cash.

ERCISE 6. Journal Entries - Capital share different from capital contrib June 1, 2022, Al and Ace formed a partnership. Al contributed cash of the other hand, Ace contributed cash of P520,000, building of P330,0 500,000 of which 70% had already been paid. The remaining balance losses equally. pare and upload journal entries related to partnership formation, assur Each partner would be credited for the full amount of net assets inves Each partner initially should have equal interest in partnership capital. invest additional cash.

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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