Prepare opening journal entry in books of the partnership

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Question - Calaguas and Dela Cruz formed a partnership and invested the following assets and liabilities:

Calaguas: Fair Market Value Carrying Value

Cash 300,000 300,000

Land 450,000 280,000

Dela Cruz:

Cash 100,000 100,000

Building 600,000 520,000

Mortgage Payable (400,000) (400,000)

The partners will share profits and losses equally.

Required - Prepare the opening journal entry in the books of the partnership.

Reference no: EM132758241

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