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On January 1, 20x1, Mr. A and Ms. B formed a partnership. Mr. A contributed cash of ?500,000 while Ms. B contributed a building with carrying amount of ?400,000 and fair value of ?800,000. The building has an unpaid mortgage of ?200,000 which is not assumed by the partnership.
Requirement:
Problem 1: Provide the table and the journal entry to record the contributions of the partners.
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