Adams and Brady tonm a partnership Adams contnhutes S50o0D c

Adams and Brady tonm a partnership Adams contnhutes S5,0o0D cash and merchandise inventory with a current market value of 558,DD Hrady contnbutes s2,000 in cash and land with a current market value ot $40cst ot $25,DDo) Wh ch of the tollwing s correct? OA. Bredy receives a bonus of $40 000 from Adams. O B. rdy, Capilal is debiled for $27,000 ?, ?\'ady. Capilal is credited rur $27,000 O D. Brady, Capilal is crediled Tor $42,000

Solution

Option D

Brady capital is credited for $42000

1.If a partner invested cash in a partnership, the Cash account of the partnership is debited, and the partner\'s capital account is credited for the invested amount.

2.If a partner invested an asset other than cash, an asset account is debited, and the partner\'s capital account is credited for the market value of the asset.