In a partnership business, George has an ownership of 60% and Ben has an ownership of 40%. For developing the business, they purchased equipment for $10,000. George contributes a sum of $7,000 and Ben makes a contribution of $3,000 on July 1. Based on the information provided, which of the following is true of the partnership balance sheet?

Question

Quizplus · Accepted Answer

As George and Ben have a respective ownership of 60% and 40%, the purchase of equipment for $10,000 will be recorded on the balance sheet in the same ratio. 
Thus, George's portion will be $6,000 ($10,000 x 0.6) and Ben's portion will be $4,000 ($10,000 x 0.4). 
Subsequently, George will contribute $7,000 and Ben will contribute $3,000. As a result, George, Capital will increase by $7,000 and Ben, Capital will increase by $3,000. 
Therefore, Choice B is correct.

In a Partnership Business, George Has an Ownership of 60