is a PNB note of P1, 200,000 which will be assumed by the partnership. Give two journal entries to record the investments of the partner.
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.
![Andy and Amy agree to form a partnership with Andy investing the following: Land (with mortgage note)
Cost - P1,500,000 Market Value - P3,500,000 Building Cost - P5,000,000 Market Value - P2,500,000
Accumulated Depreciation Cost - P1,500,000 Amy will invest cash equal to half of Andy's investment. There
is a PNB note of P1, 200, 000 which will be assumed by the partnership. Give two journal entries to record
the investments of the partner.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F03ef2ae3-a0e2-485a-915c-8ce9b815a699%2F6af26605-82bc-4344-99d4-855869ff668a%2Fftifh3q_processed.png&w=3840&q=75)
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