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

The amount credited to Jerry's capital account is:
A) $(10 500).
B) $28 500.
C) $30 500.
D) $32 000.

Question

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

The amount credited to Jerry's capital account is:
A) $(10 500). 
B) $28 500. 
C) $30 500. 
D) $32 000.

Quizplus · Accepted Answer

To find the amount credited to Jerry's capital account, we need to add his net assets contribution to his previous capital balance (assuming he had one).

Jerry's contribution = $21,000 (as per the image provided)
Assuming Jerry had no previous capital balance, the amount credited to his capital account would be $21,000. 
Therefore, the total amount credited to Jerry's capital account after combining his net assets would be: 
$21,000 (previous balance) + $9,500 (net assets contribution) = $30,500.

Hence, the correct answer is option C.

Tom and Jerry Are Two Sole Traders That Have Joined