Prepare the journal entry to record cain admission

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Reference no: EM132719792

Adam, Eve and Abel are partners in Suave Swimsuits. Profits and losses are shared in the ratio of 5:3:2. On 1 July 2002, when their capital balances stood at $50 000, $25 000 and $30 000 respectively, they agree to admit Cain to the partnership.

Required:

Question 1: Prepare the journal entry to record Cain's admission to the partnership under each of the following assumptions

1. Cain pays Eve $15 000 for 50% of her interest.

2. Cain pays Adam $10 000 and Abel $7500 for 25% of each of their interests.

3. Cain invests $20 000 cash in the partnership for a 10% interest.

4. Cain invests $20 000 cash in the partnership for a 20% interest.

5. Cain invests $45 000 cash in the partnership for a 30% interest.

Reference no: EM132719792

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