Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 17 - No. 30)
If a partner invests a piece of equipment into the partnership, what would be recorded?
A debit to Cash and a credit to the Partner's Capital.
A debit to Equipment and a credit to the Partner's Capital.
A debit to Equipment and a credit to the Partner's Drawings.
A debit to Cash and a credit to the Partner's Drawings.
Explanation
Equipment, an asset, is debited, and the partner's capital account increases.
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