henry jones contributed equipment, inventory, and $44,000 cash to the partnership. The equipment had a book value of $35,000 and market value of $28,000. The inventory has a book value of $25,000 but only had a market value of $12,000, due to abolescence. The partnership also assumed a $15,000 note payable owed by henry that was originally used to purchase the equipiment.

what amount should henry's capital account be recorded?


please help me! I really need it!:confused:

For starters, look to the left side of your keyboard for a key marked "Caps Lock". Press it until the Caps Lock indicator goes OFF. :)

OK, (assuming this is for accounting purposes), Mr Jones' capital account should be credited for the fair market value of the assets he contributed to the partnership. His capital account would be reduced for any debts of Mr Jones that the partnership assumes.

Give it a go, and check back in if you still have questions.