Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 21 - No. 42)
When a partner invests services into the partnership, at what value is the investment recorded?
The partner's cost of the services.
The estimated fair value of the services provided.
The cash value of the services.
No value is recorded, as only cash or assets can be contributed.
Explanation
Services would be valued at fair market value.
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