Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 19 - No. 6)
If a partner contributes land to the partnership, how is this transaction recorded?
Debit Land, credit Drawings.
Debit Land, credit Capital.
Debit Cash, credit Capital.
Debit Drawings, credit Land.
Explanation
The partnership receives land, which is debited, and the partner's capital account is credited.
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