Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 1 - No. 4)
When a partner contributes assets to the partnership, the partnership will:
Debit the asset account and credit the partner's capital account.
Credit the asset account and debit the partner's capital account.
Debit the partner's drawing account and credit the asset account.
Credit the partner's drawing account and debit the asset account.
Explanation
The partnership debits the asset account to increase assets and credits the partner’s capital account, reflecting an increase in their investment.
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