A partner invested into a partnership a building with a P250,000 carrying value and P400,000 fair market value. The related mortgage payable of P125,000 was assumed by the partnership. As a result of the investment, the asset will be recorded at
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
A partner invested into a partnership a building with a P250,000 carrying value and P400,000 fair market value. The related mortgage payable of P125,000 was assumed by the partnership. As a result of the investment, the asset will be recorded at
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