Assume a partnership made up of Partner A and Partner B. Partner C is going to join the partnership by purchasing a one-quarter interest from Partner A for $10,000 and a one-third interest from Partner B for $8,000 . At the time, Partner A has a capital interest of $40,000 and Partner B has a capital interest of $30,000 . The following journal entry should be made:
a. Partner A, Capital DR$10,000; Partner B, Capital DR$8,000; Partner C, Capital CR$18,000.
b. Partner A, Capital DR$10,000; Partner B, Capital DR$10,000; Partner C, Capital CR$18,000; Cash CR$ 2,000.
c. Partner A, Capital DR$10,000; Partner B, Capital DR$10,000; Partner C, Capital CR$20,000.
d. Partner A, Capital DR$8,000; Partner B, Capital DR$12,000; Partner C, Capital CR$20,000.
e. Partner A, Capital DR$3,000; Partner B, Capital DR$15,000; Partner C, Capital CR$18,000.
c
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