Table 12-6 Donna, Rick, and Daisy Are Partners Sharing Profits in a in a 3:3:4

question 135

Multiple Choice

Table 12-6
Donna, Rick, and Daisy are partners sharing profits in a 3:3:4 ratio, respectively. They have been overwhelmed by the amount of work recently and have agreed to admit Bud to the partnership for a cash investment. The current balances in their capital accounts are $60,000, $80,000, and $120,000, respectively.
-Refer to Table 12-6.Assuming Bud is given a 12.5% interest in the partnership for a $60,000 cash investment,the entry to record his investment includes a:

• A) credit to Bud, Capital for $40,000
• B) debit to Donna, Capital for $6,000
• C) credit to Rick, Capital for $8,000
• D) credit to Bud, Capital for $60,000

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