Floyd and Merriam Start a Partnership Business on June 12

question 136

Multiple Choice

Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows: They agreed to admit Ramelow into the business for a one-fifth interest in the new partnership. He had to bring in a cash contribution of $30,000 for the same. Assuming that Floyd and Merriam shared profits and losses in the ratio 3:1 before the admission of Ramelow. Which of the following is the correct journal entry to record the above admission?

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Definitions:

Interrole Conflict

A tension that arises when the expectations of different roles a person holds are incompatible or conflicting.

Person-Role Conflict

A type of conflict arising when an individual's personal values, beliefs, or behaviors are at odds with the expectations of their role within an organization.

Sexual Harassment

Unwelcome or inappropriate sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature in a workplace, or an academic setting.

Interpersonal Conflict

A situation in which two or more people in an organization disagree due to personal or professional reasons.