Norjannah, as her original investment in the firm of Norjannah and Nasbiya, contributed equipment that had been recorded in the books of her own business as costing P850, 000, with accumulated depreciation of P620, 000. The partner agreed on the valuation of P400, 000. They also agreed to accept Norjannah’s accounts receivable of P300, 000, realizable to the extent of 75%. Prepare the journal entry to record Norjannah’s investment in the partnership.

Norjannah, as her original investment in the firm of Norjannah and Nasbiya, contributed equipment that had been recorded in the books of her own business as costing P850, 000, with accumulated depreciation of P620, 000. The partner agreed on the valuation of P400, 000. They also agreed to accept Norjannah’s accounts receivable of P300, 000, realizable to the extent of 75%. Prepare the journal entry to record Norjannah’s investment in the partnership.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 3BCRQ

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