North invested RM40,000 in the partnership of West and East. The capital balance of West and East were RM40,000 and RM60,000, respectively. Income and loss is shared according to the ratio of equity balances. North was to receive 25% interest in the new partnership. The journal entry to record this transaction would NOT include: A. a debit to cash for RM40,000 B. a credit to West's capital account for RM2,000 C. a credit to East's capital account for RM3,000 D. a credit to North's capital account for RM30,000
North invested RM40,000 in the partnership of West and East. The capital balance of West and East were RM40,000 and RM60,000, respectively. Income and loss is shared according to the ratio of equity balances. North was to receive 25% interest in the new partnership. The journal entry to record this transaction would NOT include: A. a debit to cash for RM40,000 B. a credit to West's capital account for RM2,000 C. a credit to East's capital account for RM3,000 D. a credit to North's capital account for RM30,000
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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North invested RM40,000 in the partnership of West and East. The capital balance of West and East were RM40,000 and RM60,000, respectively. Income and loss is shared according to the ratio of equity balances. North was to receive 25% interest in the new partnership. The
A. a debit to cash for RM40,000
B. a credit to West's capital account for RM2,000
C. a credit to East's capital account for RM3,000
D. a credit to North's capital account for RM30,000
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