Which of the following accounts is credited when a new partner introduces capital into a partnership?
AGoodwill account
BNew partner's capital accountCORRECT
COld partners' capital accounts
DRevaluation account
GCEFinancial AccountingPartnership Accounts2020
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Why the answer is B, and why the others tempt you.
When a new partner introduces capital, the cash or asset brought in is debited to the relevant asset account, and the new partner's capital account is credited to record the partner's equity in the business. This is a basic double-entry principle applied to partnership accounting.
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