Griffin and Rhodes formed a partnership on January 1, 2009. Griffin contributed cash of $120,000 and
Rhodes contributed land with a fair value of $160,000. The partnership assumed the mortgage on the land
which amounted to $40,000 on January 1. Rhodes originally paid $90,000 for the land. On July 31, 2009,
the partnership sold the land for $190,000. Assuming Griffin and Rhodes share profits and losses equally,
how much of the gain from sale of land should be credited to Griffin for financial accounting purposes?
A. $ 0
Which of the following accounts could be found in the general ledger of a partnership?
10. Which of the following accounts could be found in the PQ partnership's general ledger?
I. Due from P
II. P, Drawing
III. Loan Payable to Q
A. I, II
B. I, III
C. II, III
D. I, II, and III
11. The DEF partnership reported net income of $130,000 for the year ended December 31, 2008. According to
the partnership agreement, partnership profits and losses are to be distributed as follows:
How should partnership net income for 2008 be allocated to D, E, and F?