Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 13 - No. 49)
When a partner contributes additional capital to the partnership, which of the following is most likely to occur?
The partner's capital account decreases.
The partner's drawings account increases.
The partnership's bank account increases.
The partnership's liabilities increase.
Explanation
Additional capital contribution increases the partnership's cash (bank) balance.
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