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Partners A and B have capital balances of $150,000 and $100,000, respectively. They agree to share profits and losses in the ratio of 3:2. Partner

Partners A and B have capital balances of $150,000 and $100,000, respectively. They agree to share profits and losses in the ratio of 3:2. Partner C is admitted with a 20% interest in the partnership by contributing $80,000.

Requirements:(a) Prepare the journal entry for Partner C's admission. (b) Calculate the new capital balances for all partners. (c) Determine the profit-sharing ratios. (d) Discuss the accounting treatment for the admission of a new partner.

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