Jamie reckons that the tools he already owned which he will use for the business had cost are worth £500. How should these be dealt with?
A) They are irrelevant as they are Jamie's and do not belong to the business
B) As an increase in the assets of the business as they will be used or the business
C) As an increase in the assets of the business as they will be used or the business with a corresponding increase in the liabilities of the business
D) As an increase in the assets of the business as they will be used or the business with a corresponding increase in the owners' equity

Question

Quizplus · Accepted Answer

When Jamie uses his personal tools for the business, it's considered an investment into the business, increasing the assets (tools now owned by the business) and simultaneously increasing the owners' equity to reflect Jamie's contribution.

Jamie Reckons That the Tools He Already Owned Which He