Keith and Jim are partners.Keith has a capital balance of $47,000 and Jim has a capital balance of $32,000.Jim sells $15,000 of his ownership to Bill.Which of the following is TRUE of the journal entry to admit Bill?
A) Bill, Capital will be debited for $17,000.
B) Jim, Capital will be debited for $17,000.
C) Jim, Capital will be credited for $15,000.
D) Bill, Capital will be credited for $15,000.

Question

Quizplus · Accepted Answer

Bill, Capital will be credited for $15,000.When a new partner is admitted, the new partner's capital account is credited for the amount of their investment. In this case, Bill is investing $15,000, so his capital account will be credited for $15,000.

Keith and Jim Are Partners