The Felix and Morris Partnership has capital account balances as follows: The partners share profit and losses in the ratio of 60% to Felix and 40% to Morris.
Instructions
Prepare the journal entry on the books of the partnership to record the admission of Singh as a new partner under the following three independent circumstances:
a) Singh pays $ 80,000 to Felix and $ 95,000 to Morris for one-half of each of their ownership interests in a personal transaction.
b) Singh invests $ 150,000 in the partnership for a one-third interest in partnership capital.
c) Singh invests $ 1,000,000 in the partnership for a one-third interest in partnership capital.

Question

The Felix and Morris Partnership has capital account balances as follows:  The partners share profit and losses in the ratio of 60% to Felix and 40% to Morris.
Instructions
Prepare the journal entry on the books of the partnership to record the admission of Singh as a new partner under the following three independent circumstances: 
a) Singh pays $ 80,000 to Felix and $ 95,000 to Morris for one-half of each of their ownership interests in a personal transaction.
b) Singh invests $ 150,000 in the partnership for a one-third interest in partnership capital.
c) Singh invests $ 1,000,000 in the partnership for a one-third interest in partnership capital.

Quizplus · Accepted Answer

The Answer of The Felix and Morris Partnership has capital account balances as follows:  The partners share profit and losses in the ratio of 60% to Felix and 40% to Morris.
Instructions
Prepare the journal entry on the books of the partnership to record the admission of Singh as a new partner under the following three independent circumstances: 
a) Singh pays $ 80,000 to Felix and $ 95,000 to Morris for one-half of each of their ownership interests in a personal transaction.
b) Singh invests $ 150,000 in the partnership for a one-third interest in partnership capital.
c) Singh invests $ 1,000,000 in the partnership for a one-third interest in partnership capital.

The Felix and Morris Partnership Has Capital Account Balances as Follows