In a partnership business,George has an ownership of 57% and Ben has an ownership of 43%.For developing the business,they purchased equipment for $9800.George contributes a sum of $6800 and Ben makes a contribution of $3000 on 1 July.Based on the information provided,which of the following is true of the partnership balance sheet?

Question

Quizplus · Accepted Answer

The purchase of equipment is a transaction that increases the assets of the partnership but does not affect the capital accounts of the partners directly. However, the contributions made by George and Ben do affect their individual capital accounts. George contributed $6800, so his capital account will increase by this amount. Ben contributed $3000, so his capital account will also increase by this amount. Therefore, choice C is correct. Choices A and B are incorrect because they assume that the purchase of equipment directly affects the capital accounts of the partners. Choice D is incorrect because it does not reflect the actual amounts contributed by George and Ben.

In a Partnership Business,George Has an Ownership of 57% and Ben