Tom and Jerry are two sole traders that have joined together to form a partnership by combining their net assets.
Jerry contributes:

What will be the amount shown in the accumulated depreciation account on formation of the partnership of Tom and Jerry?
A) $Nil
B) $2000
C) $3000
D) $5000

Question

Tom and Jerry are two sole traders that have joined together to form a partnership by combining their net assets.
Jerry contributes:

What will be the amount shown in the accumulated depreciation account on formation of the partnership of Tom and Jerry?
A) $Nil 
B) $2000 
C) $3000 
D) $5000

Quizplus · Accepted Answer

The information provided in the question about Jerry's contribution does not include any details regarding the accumulated depreciation on his assets. Therefore, it can be assumed that there is no accumulated depreciation and the amount shown in the accumulated depreciation account on formation of the partnership of Tom and Jerry will be $Nil.

Tom and Jerry Are Two Sole Traders That Have Joined