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18 November, 15:40

J. Gladwin has a capital balance of $106,000 and R. Selleck has a capital balance of $94,000 in their partnership as of September 30. On October 1, Gladwin sells one-half of her partnership interest to R. Dennis for $60,000 cash. Selleck agrees to accept Dennis as a new partner. Prepare the October 1 journal entry for the partnership.

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  1. 18 November, 17:09
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    J. Gladwin has a capital balance = $106,000

    R. Selleck has a capital balance = $94,000

    The Journal entry is as follows:

    On October 1,

    J. Gladwin Capital A/c Dr. $53,000

    To R., Capital $53,000

    (To record admission of R.)

    Working Notes:

    J. Gladwin Capital:

    = Capital balance of J. Gladwin : 2

    = $106,000 : 2

    = $53,000

    Therefore, the J. Gladwin capital is $53,000.
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