Tim and Michelle have decided to form a partnership with a 60/40 partnership interest ratio.Tim contributes $7,500 cash and $1,500 in merchandise inventory.While journalizing this transaction ________.
A)Tim,Capital will be debited for $9,000
B)Tim,Capital will be credited for $9,000
C)Tim,Capital will be credited for $6,000 and Michelle,Capital will be credited for $4,500
D)Tim,Capital will be debited for $6,000 and Michelle,Capital will be debited for $4,500

Question

Quizplus · Accepted Answer

B)Assets of $7,500 cash and $1,500 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