In a partnership business, Jack has an ownership of 60% and Teresa has an ownership of 40%. For developing the business, Jack contributed $7,000 and Teresa contributed $3,000 on July 1. Which of the following is true of this scenario?
A)Either the total contribution of $10,000 or the contribution in the ownership ratio will be recorded.
B)Only the total contribution of $10,000 will be recorded.
C)Individual contribution of $7,000 by Jack and $3,000 by Teresa will be recorded.
D)60% of Jack's contribution and 40% of Teresa's contribution will be recorded.

Question

Quizplus · Accepted Answer

Each partner's individual contribution is recorded to reflect their investment in the business accurately.

In a Partnership Business, Jack Has an Ownership of 60