The Felix and Morris Partnership has capital account balances as follows:

Felix, Capital....................................... $ 145,000

Morris, Capital....................................... 160,000

The partners share profit and losses in the ratio of 60% to Felix and 40% to Morris.

Instructions:

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

a)Singh pays $ 80,000 cash to Felix and $ 95,000 cash to Morris for one-half of each of their ownership interests in a personal transaction.

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