A. Veveris and J. Rubenis share profit on a 2:1 basis, respectively. They have capital balances of $42,000 and $33,000, respectively, when S. Weiss is admitted to the partnership on September 1, 2017.
Instructions
(a) Prepare the journal entry to record the admission of Weiss under each of the following independent assumptions:
1. Weiss purchases 50% of Ververis's equity for $25,000. This is a personal transaction between the partners.
2. Weiss purchases 25% of Ververis's and Rubenis's equity for $15,000 and $10,000, respectively. This is a personal transaction among the partners.
(b) For each of these alternatives, indicate the balance in each partner's capital account and total partners' equity after Weiss is admitted to the partnership.