Smiles and Scowls,two Sole Traders Form a Partnership by Combining

question 3

Multiple Choice

Smiles and Scowls,two sole traders form a partnership by combining their net assets.
Smiles contributes: $\begin{array}{lcc} & \text { Cost value } & \text { Fair value } \\\text { Accounts Receivable } & \$ 10000 & \$ 8500 \\\text { Cash } & \$ 20000 &\\\text { Scowls contributes: }\\\text { Plant } & \$ 30000 & \$ 25000 \\\text { Accumulated Depreciation } & \$ 8000 & \\\text { Bank Overdraft } & \$ 11000 &\end{array}$
The amount credited to Smiles' Capital account is:

• A)$30 000
• B)$29 000
• C)$28 500
• D)$20 000

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Definitions:

Trade Deficits

A situation in which a country's imports of goods and services exceed its exports, leading to more money flowing out of the country than coming in.

World's Largest Exporter

The country or entity that sells the largest amount of goods to foreign countries, measured by value.

Exports

Merchandise or services originating from one country and sold to purchasers in another country.

World Bank

A global financial organization that offers loans and grants to the governments of less wealthy nations to support their capital projects.