Ask Question
7 April, 15:47

In their business partnership, George has an ownership interest of 56 % and Ben has an ownership interest of 44 %. In the current year, they purchase equipment for $9,800. In order to finance the equipment purchase, George makes a contribution of $6,700 and Ben makes a contribution of $3,100 to the partnership. Based on the information provided, which of the following is true regarding the partnership balance sheet?

(A) George, Capital will increase by $5,488 and Ben, Capital will increase by $4,312.

(B) George, Capital will increase by $9,800 and Ben, Capital will remain unchanged.

(C) Both George, Capital and Ben, Capital will increase by $9,800.

(D) George, Capital will increase by $6,700 and Ben, Capital will increase by $3,100.

+2
Answers (1)
  1. 7 April, 18:07
    0
    (D) George, Capital will increase by $6,700 and Ben, Capital will increase by $3,100.

    Explanation:

    Transaction for the event

    Dr. Equipment (Asset) 9800

    Cr. George (Capital A/c) 6700

    Cr. Ben (Capital A/c) 3100

    So.

    George, Capital will increase by $6,700 and Ben, Capital will increase by $3,100 on the basis of their contribution in the purchase of equipment. So option D is true based on this event.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In their business partnership, George has an ownership interest of 56 % and Ben has an ownership interest of 44 %. In the current year, ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers