Floyd and Merriam Start a Partnership Business on 12 June $$\begin{array} { | l | l | } \hline \text { Floyd } & \$ 52,000 \\\hline \text { Merriam } & 15,000 \\\hline\end{array}$$

Multiple Choice

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) $\begin{array}{|ll|l|l|} \hline\text { Cash } &&\$ 29,000 & \\\hline & \text { Ramelow, } & & 29,000\\\text { capital } \\\hline\end{array}$
B) $$\begin{array} { | l | l | l | } \hline \text { Cash } & \$ 29,000 & \\\hline \text { Merriam, }\text { capital } & &9800 \\\hline \text { Floyd, capital } & & 19,2000 \\\hline\end{array}$$
C) $$\begin{array} { | l l | l | l | } \hline \text { Cash } & & \$ 29,000 & \\\hline \text { Floyd, } \text { capital } & &&7350 \\\hline \text { Merriam, } \text { capital } && &2450 \\\hline \text { Ramelow, }\text { capital } & & &19,200 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | l | } \hline \text { Merriam, capital } & \$ 19,200 & \\\hline \text { Floyd, captial } & 9800 & \\\hline \text { Ramelow, } & & \\\text {Capital }&&29,000\\\hline\end{array}$$