Answer:
cash 1,000 debit
inventory 2,000 debit
land 5,000 debit
note payable 3,000 credit
Krug capital Account 5,000 credit
Explanation:
The land and inventories will be accepted at his market value.
Along with cash this are assets which enter the partnership so they are debited.
The note payable decreases the Krug capital contribution. It is credited.
Krug capital account balance will be to complete the entry and make debit = credit.