Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 21 - No. 27)
When a partner contributes assets other than cash to the partnership, at what value are those assets recorded in the partnership's books?
The partner's original cost of the assets.
The fair market value of the assets at the time of contribution.
The depreciated value of the assets.
The face value of the assets.
Explanation
Assets are recorded at their fair market value on the date of contribution.
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