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If a partner brings a building as capital and the firm also takes over an old loan on that building at what value will capital account be credited?

Answer and explanation

Correct answer: Building value minus loan taken over

The firm received the asset but also accepted the liability. Partners net capital is asset value minus liability.

Related tags

Asset And LiabilityCapital IntroducedNet ValueCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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