Amir, Tamer and Sameer are partners in a partnership firm sharing profits and losses on the basis of 40:35:25 respectively and their capital balances are $100,000, $80,000& $40,000 respectively. Maher was admitted to the partnership firm by making an investment of $100,000 with 30% ownership interest, the total capital (for all partners) after admitting Maher is:

a.

$140,000

b.

$ 320,000

c.

$ 96,000

d.

$ 220,000

Basem, Tamer and Sameer are partners in a partnership firm sharing profits and losses on the basis of 40:35:25 respectively and their capital balances are $100,000, $80,000& $40,000 respectively. The journal entry for the admission of Maher by making an investment of $100,000 with 30% ownership interest is:

a.

Debit each of Maher capital 30,000, Basem Capital 28,000, Tamer capital 24,500 and Sameer capital 17,500 and credit Cash 100,000

b.

Debit each of Maher capital, 96,000, Basem Capital 1,600, Tamer capital 1,400 and Sameer capital 1,000 and credit Cash 100,000

c.

Debit Cash 100,000 and credit each of Maher capital 96,000, Basem Capital 1,600, Tamer capital 1,400 and Sameer capital 1,000

d.

Debit Cash 100,000 and credit Maher capital 100,000