Baker and Mays Each Sell 1/3 of Their Partnership Interest

question 203

Multiple Choice

Baker and Mays each sell 1/3 of their partnership interest to Pool, receiving $140,000 each. At the time of the admission, each partner has a $420,000 capital balance. The entry to record the admission of Pool will show a

• A) debit to Cash for $280,000.
• B) credit to Pool, Capital for $420,000.
• C) debit to Mays, Capital for $420,000.
• D) debit to Baker, Capital for $140,000.