How to record the admission of adam to the partnership


kala and leah, partners in best designs, have a capital balance of 40,000 and 60,000 respectively. adam joins the partnership buy buying one-half of kala's interest for 30,000. in addition, because of adam's outstanding sales skills, the partners agree to increase his interest to 40% if he invest another 10,000. the income-sharing ratio of kala, leah, and adam is 4:3:1

(A) Journalize the entries to record the admission of adam to the partnership.

(B) Immediately after adam's admission to the partnership, leah sells one-fourth of her interest to denton for 35,000. journalize the entry to record this transaction.

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Accounting Basics: How to record the admission of adam to the partnership
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