T.Andrews contributed $14,000 in to the T & B Partnership.The journal entry to record the transaction for the partnership is:
A)Debit Cash $14,000;credit T & B Partnership,Capital $14,000.
B)Debit Cash $14,000;credit T.Andrews,Capital $14,000.
C)Debit T & B Partnership $14,000;credit T.Andrews,Capital $14,000.
D)Debit T.Andrews,Capital $14,000;credit T & B Partnership,Capital $14,000.
E)Debit Cash $14,000;credit Common Stock $14,000.

Question

Quizplus · Accepted Answer

Since T.Andrews is contributing the money, the account that will be credited is the partner's capital account, not the partnership's capital account. Therefore, we would debit cash for the amount of $14,000 and credit T.Andrews' capital account for $14,000.

TAndrews Contributed $14,000 in to the T & B Partnership