E14.7 New Partner Admission: Purchase of Existing Interest The capital balances for the partnership of Ajeet, Rahul, and Suresh are as follows: Capital-Ajeet ........ Capital Rahul ........................................................ Capital-Suresh ......... $400,000 350,000 500,000 The partnership profit-sharing ratio is 3:2:5. A new partner, Harish, enters the partnership by purchasing existing interests in the partnership. Required Prepare the journal entry to record Harish's admission to the partnership, and compute the new capital balances, in each of the following cases, a. Harish pays Ajeet $450,000 for his entire interest in the partnership. There is no revaluation of part- nership assets. b. Harish pays the three partners a total of $420,000 for 20 percent of each of the partners' interests. There is no revaluation of partnership assets. c. Repeat part b, assuming revaluation of partnership assets by recording goodwill