Multiple Choice
Ruby and Anita are partners.Ruby has a capital balance of $270,000 and Anita has a capital balance of $180,000.Denis invests a building with a current market value of $170,000 to acquire an interest in the new partnership.Which of the following is true of the journal entry to record this transaction? (Assume no bonus to any partner. )
A) Building will be debited for $170,000,Ruby,Capital and Anita,Capital will be credited for $85,000 each.
B) Building will be debited for $170,000 and Denis,Capital will be credited for $170,000.
C) Ruby,Capital and Anita,Capital will be debited for $85,000 each and Denis,Capital will be credited for $170,000.
D) Ruby,Capital and Anita,Capital will be credited for $85,000 each and Denis,Capital will be debited for $170,000.
Correct Answer:
Verified
Correct Answer:
Verified
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