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If a partner brings goods as capital and agreed value of goods is higher than cost which value should be taken in capital account?

Answer and explanation

Correct answer: Agreed value

Asset brought by partner is recorded at the agreed value accepted by partners. Do not use cost if it is only additional information.

Related tags

Goods As CapitalAgreed ValueCapital CreditCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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