Ruby and Anita are partners. Ruby has a capital balance of $240,000 and Anita has a capital balance of $220,000. Denis co building with a current market value of $140,000 to acquire an interest in the new partnership. Which of the following is T entry to record this transaction? (Assume no bonus to any partner.) O Ruby, Capital and Anita, Capital will be credited for $70,000 each and Denis, Capital will be debited for $140,000. O Ruby, Capital and Anita, Capital will be debited for $70,000 each and Denis, Capital will be credited for $140,000. O Building will be debited for $140,000, Ruby, Capital and Anita, Capital will be credited for $70,000 each. Building will be debited for $140.000 and Denis Capital will be credited for $140.000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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