Answer the following question:

In the partnership, the initial investment was 240,000. Betsy contributes $54,000 cash for a 25% interest in the new net assets of the partnership (that has existing equity of $180,000). The old partners capital accounts are not to decrease (i.e., use the Revaluation / Goodwill method).

Required:

a. How much amount is credited in Betsys capital account?

b. Pass a journal entry for that amount :