A and B Cannot Agree on a Goodwill Figure

A and B cannot agree on a goodwill figure. However they agree to allow C to join, if he gives
£140,000 to the partnership. At present the net assets of the partnership are worth £60,000. They
Have agreed that C will be entitled to 40% of the business, A 40% and B 20% after C joins. A and B
Shared profits to this point in the ratio 1:1 before C joined. What will the double entry be to record the
Introduction of the £140,000.

A) Dr. Bank account £140,000 Cr. Capital account A £56,000
Cr) Capital account B £28,000
Cr) Capital account C £56,000
B) Dr. Bank account £140,000 Cr. Current account A £56,000
Cr) Current account B £28,000
Cr) Current account C £56,000
C) Dr. Bank account £140,000 Cr. Capital account A £50,000
Cr) Capital account B £10,000
Cr) Capital account C £80,000
D) Dr. Bank account £140,000 Cr. Current account A £50,000
Cr) Current account B £10,000
Cr) Current account C £80,000