Multiple Choice Question 131 Wu and Mannis each sell 1/3 of their partnership interest to Patel, receiving $105300 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

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Kinley Jensen

28 February, 19:22

Multiple Choice Question 131 Wu and Mannis each sell 1/3 of their partnership interest to Patel, receiving $105300 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

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Answers (1)

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Timothy Duran · Answer 1

Credit, Patel Capital $210600: Debit Cash or Bank $210600.

Explanation:

There were no talk of revaluation after the admission so it would be treated as Patel bringing capital in cash which is left in the business;

Credit, Patel Capital $210600: Debit Cash or Bank $210600.