IIA-ACCA Exam Dumps | An internal auditor was asked to review an equal equity partnership In one sampled transaction Partner

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Question 198/212

An internal auditor was asked to review an equal equity partnership In one sampled transaction Partner A transferred equipment into the partnership with a self-declared value of $10,000 and Partner B contributed equipment with a self-declared value of $15 000 The capital accounts of each partner were subsequently credited with S12,500. Which of the following statements is true regarding this transaction?

A. The capital accounts should be increased using a weighted average based on the current percentage of ownership

B. No action is needed as the capital account of each partner was increased by the correct amount

C. The capital accounts of the partners should be increased by the fair market value of their contribution

D. The capital accounts of the partners should be increased by the original cost of the contnbuted equipment.

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Question 198/212

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