What is the adjusted balance of your capital account if attached to the building is an unpaid mortgage of P800,000. Partner 1 agrees to settle this mortgage immediately using his/her personal funds. Also, provide the entry to record the contribution in the partnership books.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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What is the adjusted balance of your capital account if attached to the building is an unpaid mortgage of P800,000. Partner 1 agrees to settle this
mortgage immediately using his/her personal funds. Also, provide the entry to record the contribution in the partnership books.

Partner 1
Partner 2
Cash
250,000
430,000
1,250,000
2,000,000
330,000
1,800,000
1,000,000
Accounts receivable
Land
Building
Accounts payable
Notes payable
Сapital
400,000
500,000
1,900,000
3,600,000
Transcribed Image Text:Partner 1 Partner 2 Cash 250,000 430,000 1,250,000 2,000,000 330,000 1,800,000 1,000,000 Accounts receivable Land Building Accounts payable Notes payable Сapital 400,000 500,000 1,900,000 3,600,000
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