Investment in a Partnership: Bonus to New Partner

A, B , & C, are Partners in the ABC Partnership and share Profits and Losses in the ratio of 1: 2: 3.

Their Capital account balances are :

A Cap $50,000

B Cap 35,000

C Cap 25,000

Mr. D, a Whizkid on Wall Street, is invited to join the partnership and he contributes $10,000 for a

30% interest in the Partnership.

REQUIRED: Record the Journal Entry for the Admission of Mr. D.