When a partner contributes an asset to the partnership, how is it recorded?
Practice Questions
1 question
Q1
When a partner contributes an asset to the partnership, how is it recorded?
Debit Asset Account, Credit Partner's Capital Account
Debit Partner's Capital Account, Credit Asset Account
Debit Cash Account, Credit Asset Account
Debit Partner's Drawings, Credit Asset Account
When a partner contributes an asset, the asset is debited to the Asset Account and the corresponding credit is made to the Partner's Capital Account.
Questions & Step-by-step Solutions
1 item
Q
Q: When a partner contributes an asset to the partnership, how is it recorded?
Solution: When a partner contributes an asset, the asset is debited to the Asset Account and the corresponding credit is made to the Partner's Capital Account.
