The Capital Balances of Martin,Greene,and Patron,who Share Income in the Ratio

Multiple Choice

The capital balances of Martin,Greene,and Patron,who share income in the ratio of 6:3:1,are as follows: Martin $240,000,Greene $120,000,and Patron $40,000.Elan invests $200,000 cash in the partnership for a one-third interest.How would the partnership record the admission of Elan?

A) Debit Cash for $200,000,credit Martin,Capital for $120,000,credit Greene,Capital for $60,000,credit Patron,Capital for $20,000.
B) Debit Cash for $133,333 and credit Elan,Capital for $133,333.
C) Debit Elan,Capital for $133,333 and credit Cash for $133,333.
D) Debit Elan,Capital for $200,000 and credit Cash for $200,000.
E) Debit Cash for $200,000 and credit Elan,Capital for $200,000.