Reference no: EM132627823

Question - Tom and Mary are running a beauty parlor business since year 2010. Their capital balances on 31st December, 2015 were 380,000 and 360,000. On this date, they have decided to add Peter as a new partner in the business. Peter is a young man and has earned a great reputation in the field of fashion and parlor work due to her foreign qualification and experience.

1. Peter invests equipment 90,000 and sufficient cash for one third interest in the business.

2. Peter invests cash 400,000 and is to receive a one half interest in the partnership. Tom and Mary decided to maintain their level of capital in the partnership business.

3. Peter invests cash 300,000 and is to receive a one fourth interest in the business. After her admission, total capital of the partnership business is to be 1,200,000.

4. Peter purchased a one third interest of Mary for 110,000 and a one fourth interest of Tom for 100,000 cash.

Required - Journal entries in respect of Peter admission in the business under the above cases?