alleryStart learning →A partner brings a non-cash asset. At what value is his capital account credited?
AMarket value
BOriginal cost
CTax assessed value
DInsured value
Answer & Solution
Correct answer: A. Market value
A non-cash asset is recorded and the capital account is credited at its market value.
Keep practising Partnership Accounts
Browse all Partnership Accounts questions for CA Foundation, or explore more Accounting topics.
Related questions
In an LLP, is a partner liable for another partner's unauthorised actions?An LLP partner's liability is limited to what?Which authority registers and controls LLPs in India?What minimum capital is needed to form an LLP?What is the minimum number of members needed to start an LLP?What is the upper limit on partners in an Indian LLP?What does perpetual succession mean for an LLP?Which Act is stated not to apply to Indian LLPs?