Tim and Michelle have decided to form a partnership with a 60/40 partnership interest ratio.Tim contributes $7500 cash and merchandise inventory with a market value of $1500.While journalizing this transaction ________.
A) Tim, Capital will be debited for $9000
B) Tim, Capital will be credited for $9000
C) Tim, Capital will be credited for $6000 and Michelle, Capital will be credited for $4500
D) Tim, Capital will be debited for $6000 and Michelle, Capital will be debited for $4500

Question

Quizplus · Accepted Answer

Assets of $7500 cash and $1500 inventory will be debited. The owner's capital account will be credited for the total contribution.

Tim and Michelle Have Decided to Form a Partnership with a 60/40