The Felton and Burchell Partnership has partner capital account balances as follows: $\begin{array}{lr}
\text { Felton, Capital } & \$ 550,000 \
\text { Burchell, Capital } & 200,000
\end{array}$
The partners share income and losses in the ratio of 60% to Felton and 40% to Burchell.
Instructions
Prepare the journal entry on the books of the partnership to record the admission of Santos as a new partner under the following three independent circumstances.
1. Santos pays $400000 to Felton and $150000 to Burchell for one-half of each of their ownership interest in a personal transaction.
2. Santos invests $600000 in the partnership for a one-third interest in partnership capital.
3. Santos invests $240000 in the partnership for a one-third interest in partnership capital.

Question

The Felton and Burchell Partnership has partner capital account balances as follows: $\begin{array}{lr}
\text { Felton, Capital } & \$ 550,000 \
\text { Burchell, Capital } & 200,000
\end{array}$
 The partners share income and losses in the ratio of 60% to Felton and 40% to Burchell.
Instructions
Prepare the journal entry on the books of the partnership to record the admission of Santos as a new partner under the following three independent circumstances.
1. Santos pays $400000 to Felton and $150000 to Burchell for one-half of each of their ownership interest in a personal transaction.
2. Santos invests $600000 in the partnership for a one-third interest in partnership capital.
3. Santos invests $240000 in the partnership for a one-third interest in partnership capital.

Quizplus · Accepted Answer

The Answer of The Felton and Burchell Partnership has partner capital account balances as follows: $\begin{array}{lr}
\text { Felton, Capital } & \$ 550,000 \
\text { Burchell, Capital } & 200,000
\end{array}$
 The partners share income and losses in the ratio of 60% to Felton and 40% to Burchell.
Instructions
Prepare the journal entry on the books of the partnership to record the admission of Santos as a new partner under the following three independent circumstances.
1. Santos pays $400000 to Felton and $150000 to Burchell for one-half of each of their ownership interest in a personal transaction.
2. Santos invests $600000 in the partnership for a one-third interest in partnership capital.
3. Santos invests $240000 in the partnership for a one-third interest in partnership capital.

The Felton and Burchell Partnership Has Partner Capital Account Balances Felton, Capital $550,000 Burchell, Capital 200,000\begin{array}{lr}\text { Felton, Capital } & \$ 550,000 \\\text { Burchell, Capital } & 200,000\end{array} Felton, Capital Burchell, Capital ​$550,000200,000​

The Felton and Burchell Partnership Has Partner Capital Account Balances $\begin{array}{lr}\text { Felton, Capital } & \$ 550,000 \\\text { Burchell, Capital } & 200,000\end{array}$