Question

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

Answer 1

Answer:

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.