alleryStart learning →A partner brings cash into a firm. What is the entry on his investment?
ADebit Cash, credit his Capital
BDebit Capital, credit Cash
CDebit Drawings, credit Cash
DCredit Cash and Goodwill
Answer & Solution
Correct answer: A. Debit Cash, credit his Capital
Cash is an asset that rises, so Cash is debited and the partner's capital account is credited.
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