A partnership is often formed by the joining together of sole trader businesses. Assets other than cash and liabilities are sometimes contributed. If a depreciating asset is brought into the partnership, it will be recorded in the partnership accounts (books) with:

a. debit to asset and credit to accumulated depreciation {as per the partners' original accounts)

c. debit to asset and credit to accumulated depreciation (as per agreed amounts)

d. debit to asset only {as per the carrying amount in the partners original accounts)

b. debit to asset only (as per the current market value)