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10 December, 19:54

Bill stewart contributes land valued at $10,000 and a building valued at $70,000 to form a partnership. the partnership also will pay the $50,000 mortgage payable on the building that bill contributes. bill stewart, capital should be credited for what amount to record his investment in the partnership?

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  1. 10 December, 20:01
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    In the given case Bill Stewart has contributed land valued at $10,000 and a building valued at $70,000 to form a partnership. It means the value of assets contributed by Bill Stewart is 10,000+70,000 = $80,000.

    In addition to the above assets, the partnership also will pay the $50,000 mortgage payable on the building that bill contributes. It means Bill has transferred a liability to the firm.

    So, Bill Stewart's capital should be credited with 80,000-50,000 = $30,000
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