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Lydia, Doby, and Lola are in a partnership together and each have capital balances of $250,000. A new partner, John, pays Doby $200,000 directly for
Lydia, Doby, and Lola are in a partnership together and each have capital balances of $250,000. A new partner, John, pays Doby $200,000 directly for 100% of his interest in the new partnership, replacing him in the partnership. The journal entry on the books of the partnership to account for this transaction would be: a) No entry is made on the partnership's books as the transaction was made a) directly between Doby and John b) Debit Cash $250,000; Credit Capital-John $250,000 c) Debit Capital-Doby $250,000; Credit Capital-John $250,000 d) Debit Capital-Doby $200,000, Debit Cash $50,000; Credit Capital-John $250,000
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