What amounts should be recorded as capital for ables

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Question- Ables and Galang executed a partnership agreement that lists the following assets contributed at the partnership's formation:

Contributed by: Ables Galang

Cash P20,000 P30,000

Inventory 15,000

Building 40,000

Furniture and Equipment 15,000

The building is subject to a mortgage of P10,000, which the partnership has assumed. The partnership agreement also specified that profits and losses are to be distributed equally. What amounts should be recorded as capital for Ables and Galang at the formation of the partnership?

Reference no: EM132826573

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