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If a partner contributes personal asset as capital and agreed value differs from market value which value should be recorded in capital account?

Answer and explanation

Correct answer: Value agreed by partners

Capital contribution is recorded at the value agreed by partners. If agreed value is given in the question use it.

Related tags

Asset ContributionAgreed ValueCapital AccountCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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