Ruby and Anita Are Partners

question 19

Multiple Choice

Ruby and Anita are partners. Ruby has a capital balance of $250,000 and Anita has a capital balance of $200,000. Denis invests a building with a current market value of $150,000 to acquire an interest in the new partnership. Which of the following is true of the journal entry to record this transaction? (Assume no bonus to any partner.)

• A)Building will be debited for $150,000, Ruby, Capital and Anita, Capital will be credited for $75,000 each.
• B)Building will be debited for $150,000 and Denis, Capital will be credited for $150,000.
• C)Ruby, Capital and Anita, Capital will be debited for $75,000 each and Denis, Capital will be credited for $150,000.
• D)Ruby, Capital and Anita, Capital will be credited for $75,000 each and Denis, Capital will be debited for $150,000.

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