- 1 Marks
Question
When a partner introduces a non-current asset into a partnership business, the accounting entries will be:
Answer
Dr Non-Current Asset, Cr Partner’s Capital Account
Explanation:
When a partner contributes a non-current asset, the asset is recorded in the partnership’s books (debit Non-Current Asset), and the partner’s capital account is credited to reflect their contribution.
- Tags: Double Entry, Non-Current Asset, Partnership
- Level: Level 1
- Uploader: Theophilus