Tom and Dick had capital balances of $70,000 and $95,000 respectively when Harry invested $35,000 for a 25% ownership of the business. Tom and Dick share profits and losses in a 60:40 ratio. Which statement is correct?

Harrys capital account will be debited for $35,000.

Harrys capital account will be credited for $35,000.

Harrys capital account will be credited for $50,000.

Harrys capital account will be debited for $50,000.