The entry to record the investment of cash in a partnership by one of the partners would consist of

Question

Quizplus · Accepted Answer

When a partner invests cash into a partnership, the entry is recorded as a debit to Cash and a credit to the partner's Capital Account. The investment by the partner increases the total capital of the partnership and the partner's individual investment is reflected in their capital account. Option A is incorrect because the credit should be to Cash, not Partners' Equities. Option B is incorrect because there is no account called Partners' Equities. Option D is incorrect because the credit should be to the partner's capital account, not drawing account.

The Entry to Record the Investment of Cash in a Partnership