Floyd and Merriam start a partnership business on 12 June 2019.Their capital account balances as of 31 December 2020 stood as follows:

\begin{array} { | l | l | } \hline \text { Floyd } & \$ 52,000 \\\hline \text { Merriam } & 15,000 \\\hline\end{array}

They agreed to admit Ramelow into the business for a one-fifth interest in the new partnership.He had to bring in a cash contribution of $29,000 for the same.Assuming that Floyd and Merriam shared profits and losses in the ratio 3:1 before the admission of Ramelow,which of the following is the correct journal entry to record the above admission?
A)

\begin{array}{|ll|l|l|} \hline\text { Cash } &&\$ 29,000 & \\\hline & \text { Ramelow, } & & 29,000\\\text { capital } \\\hline\end{array}

\begin{array} { | l | l | l | } \hline \text { Cash } & \$ 29,000 & \\\hline \text { Merriam, }\text { capital } & &9800 \\\hline \text { Floyd, capital } & & 19,2000 \\\hline\end{array}

\begin{array} { | l l | l | l | } \hline \text { Cash } & & \$ 29,000 & \\\hline \text { Floyd, } \text { capital } & &&7350 \\\hline \text { Merriam, } \text { capital } && &2450 \\\hline \text { Ramelow, }\text { capital } & & &19,200 \\\hline\end{array}

\begin{array} { | l | l | l | } \hline \text { Merriam, capital } & \$ 19,200 & \\\hline \text { Floyd, captial } & 9800 & \\\hline \text { Ramelow, } & & \\\text {Capital }&&29,000\\\hline\end{array}

Dana and Emile Allocate 2/3 of the Profits and Losses

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge