FINANCIAL ACCOUNTING
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Wu and Mannis each sell 1/3 of their partnership interest to Patel, receiving $105400 each. At the time of the admission, each partner
has a $313200 capital balance. The entry to record the admission of Patel will show a
O credit to Patel, Capital for $313200.
O debit to Wu, Capital for $104400.
O debit to Mannis, Capital for $313200.
O debit to Cash for $20880.
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Step 1
When admitting a new partner, existing partner share will be debited to capital account.
Journal entry.
Old partner capital account
To New partner capital account
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- Save Answer Quèstion 7 he remaining A, B and C are partners and sharing income and loss in a 3:2:1 ratio respectively. They decided to liquidate the partnership. Before the final distributic cash to the partners, A has a capital balance of $ (30,000), B has a capital balance of $72,000 and C has a capital balance of $48,000. Cash balance is 90,000. A pald the amount he owes the partnership. Required: Prepare journal entries to record the above liquidation process. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE" BETWEEN NUMBERS: Dr. Cash 100000 Cr. Land 100000 For the toolbar, press ALT+F1O (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt 三v ... O WORDS POWERED BY TINYarrow_forwardCurrent Attempt in Progress Jaime Keller has a $37,720 capital balance in a partnership. She sells her interest to Sam Parmenter for $41,400 cash. What entry is made by the partnership for this transaction? (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)arrow_forwardDon't give answer in image formatarrow_forward
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