The Dejan and Meckie Partnership has capital account balances as follows:

Dejan, Capital......................................$ 145,000

Meckie, Capital.......................................160,000

The partners share profit and losses in the ratio of 60% to Dejan and 40% to Meckie.

Instructions:

the journal entry on the books of the partnership to record the admission of Sanan as a new partner under each of the following two independent circumstances:

i) Sanan pays $ 80,000 cash to Dejan and $ 95,000 cash to Meckie for one-half of each of their ownership interests in a personal transaction. ( 3 Marks )

ii) Sanan invests $ 1,000,000 cash in the partnership for a one-third interest in partnership capital.