3 AB and C formed a partnership. Their contributions are as followsACashEquipment80,00020,000200,000160,000Totals80.000180,000200,000Additional information• Although C has contributed the most cash to the partnership. he did not have the full amount ofP200,000 available and was forced to borrow P80.000.The equipment contributed by B has an unpaid mortgage of P40,000, the repayment of which, isassumed by the partnershipThe partners agreed to equalize their interest. Cash settlements among the partners are to bemade outside the partnershipRequirementsa Which partner (s) shall receive cash payment trom the other par tner(s?b. Provide the entry to record the contributions of the partners

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3 ABand C formed a partnership. Their contributions are as follows Cash Equipment Totals 80.000 200.000 20,000 160,000 180,000 80 000 200 000

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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Question

3 AB and C formed a partnership. Their contributions are as follows
A
Cash
Equipment
80,000
20,000
200,000
160,000
Totals
80.000
180,000
200,000
Additional information
• Although C has contributed the most cash to the partnership. he did not have the full amount of
P200,000 available and was forced to borrow P80.000.
The equipment contributed by B has an unpaid mortgage of P40,000, the repayment of which, is
assumed by the partnership
The partners agreed to equalize their interest. Cash settlements among the partners are to be
made outside the partnership
Requirements
a Which partner (s) shall receive cash payment trom the other par tner(s?
b. Provide the entry to record the contributions of the partners

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