April and Cammy are partners who have agreed to admit Elena,who will invest $30,000 for a 20 percent interest.The previous capital balances were $30,000 and $60,000 for April and Cammy,respectively.April and Cammy had shared profits equally.The entry that records Elena's admission to the partnership is:

Question

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Elena is investing $30,000 for a 20% interest in the partnership. This means the total value of the partnership is $150,000 ($30,000/20%). 
Before Elena's admission, the previous capital balances were $30,000 for April and $60,000 for Cammy. Their total capital balance was $90,000. 
To admit Elena, her $30,000 investment will be added to the total capital balance, making it $120,000. 
April and Cammy's shares will remain equal but will now be based on a total capital balance of $120,000 instead of $90,000. 
Therefore, April and Cammy's capital balances will be adjusted to $36,000 each (1/3 of $120,000). 
To record Elena's admission, we need to credit her investment of $30,000 and debit the capital accounts of April and Cammy by $6,000 each (the difference between their previous capital balance of $30,000 each and their new balance of $36,000 each).

The correct journal entry is:
Cash (or Elena, Capital) - $30,000
April, Capital - $6,000
Cammy, Capital - $6,000
To record Elena's investment in the partnership.

April and Cammy Are Partners Who Have Agreed to Admit