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7 July, 08:00

Stein agrees to pay Choi and Amal $10,000 each for a one-third (33 1/3%) interest in the Choi and Amal partnership. Immediately prior to Stein's admission, each partner had a $30,000 capital balance. Prepare the journal entry to record Stein's purchase of the partners' interest.

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  1. 7 July, 08:14
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    Journal entry to record Stein's purchase of the partners' interest.

    Dr. Cr

    Cash $10,000

    Stein Capital $10,000

    Explanation:

    Admission of new partner in the partnership will not effect the balance of other partners. It will effect the percentage share between the partners only
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