Jipsom and Klark were partners with capital account balances of $80,000 and $100,000,respectively.Looney paid $32,000 to Jipsom and $40,000 to Klark for 30% of their interests in the partnership.Jipsom and Klark shared income in the ratio of 2:3.They believed that revaluation of the partnership was appropriate when a new partner was admitted.
Required:
Prepare the journal entries to record the admission of Looney to the partnership.

Question

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The Answer of Jipsom and Klark were partners with capital account balances of $80,000 and $100,000,respectively.Looney paid $32,000 to Jipsom and $40,000 to Klark for 30% of their interests in the partnership.Jipsom and Klark shared income in the ratio of 2:3.They believed that revaluation of the partnership was appropriate when a new partner was admitted.
Required:
Prepare the journal entries to record the admission of Looney to the partnership.

Jipsom and Klark Were Partners with Capital Account Balances of $80,000