Usman and Ahmad, partners in a consulting business, share profits and losses equally. Prior to recording the admission of Ali as a new partner, Usman has a capital balance of $40,000, and Ahmad has a capital balance of $30,000.

Required:

For each of the following independent cases, prepare the journal entry that was made to record the admission of Ali into the partnership.

1. a. Ali is admitted to the partnership with a cash investment of $45,000.

2. b. Ali purchased a one-quarter interest for $45,000.

3. c. Usman and Ahmad agreed to give Ali a two-fifths in the new partnership for .$45,000

4. d. Usman and Ahmad are not willing to have their capital accounts reduced, but they are willing to allow Ali a two-fifths interest in the firm for his investment to $45,000.