Debit Credit Admission of new partner-Revaluation Assume that Partners A and B have Capital Accounts equal to $800,000 and $400,000, respectively. Partner C wants to join the partnership as one-third partner. Partner C contributes $1,700,000 in cash to the partnership in return for a one-third interest. Prior to the admission of Partner C, Partners A and B wish to revalue the long-term assets of the partnership. They obtain an appraisal of the land and building that indicates a current value of $2 million. The land and building are currently reported on the partnership balance sheet at $400,000. Record the journal entry on the books of the partnership to reflect the revaluation of the land and building and the admission of Partner C with a capital contribution of $1,700,000. Assume that despite the evidence of a previously unrecognized intangible asset, the partners do not wish to record the intangible asset. General Journal Description Land and Buildings 1,600,000 Partner A, Capital 800,000 Partner B, Capital 800,000 To revalue land and buildings. 1,700,000 Partner A, Capital 1,500,000 x Partner B, Capital 100,000 Partner C, Capital 100,000 x To record purchase of partnership interest by C. 0 0 0 Cash 0 0 0 0