Floyd and Merriam Start a Partnership Business on June 12 $$\begin{array} { | l | r | } \hline \text { Floyd } & \$ 50,000 \\\hline \text { Merriam } & 20,000 \\\hline\end{array}$$

Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows: $$\begin{array} { | l | r | } \hline \text { Floyd } & \$ 50,000 \\\hline \text { Merriam } & 20,000 \\\hline\end{array}$$ They agreed to admit Ramelow into the business for a one-third interest in the new partnership. He had to bring in a cash contribution of $20,000 for the same. Assuming that Floyd and Merriam shared profits and losses equally before the admission of Ramelow. Which of the following is the correct journal entry to record the above admission?

A) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 20,000 & \\\hline \text { Ramelow, Capital } & & 20,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 20,000 & \\\hline \text { Merriam, Capital } & 5,000 & \\\hline \text { Floyd, Capital } & 5,000 & \\\hline \text { Ramelow, Capital } & & 30,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Merriam, Capital } & 15,000 & \\\hline \text { Floyd, Capital } & 15,000 & \\\hline \text { Ramelow, Capital } & & 30,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 20,000 & \\\hline \text { Floyd, Capital } & & 5,000 \\\hline \text { Merriam, Capital } & & 5,000 \\\hline \text { Ramelow, Capital } & & 10,000 \\\hline\end{array}$$