Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 24 - No. 23)
When a partner contributes an asset like a building to the partnership, how is it initially recorded?
Debit to Cash, credit to Partner's Capital.
Debit to Building, credit to Partner's Drawings.
Debit to Building, credit to Partner's Capital.
Debit to Drawings, credit to Building.
Explanation
The building, an asset, is debited, and the partner's capital account is credited.
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