The Capital Balances of Able,Bligh,and Coulter,who Share Income in the Ratio

Multiple Choice

The capital balances of Able,Bligh,and Coulter,who share income in the ratio of 2:2:1,are as follows: Able $240,000,Bligh $120,000,and Coulter $40,000.Jeshua invests $200,000 cash in the partnership for a 20% interest.How would the partnership record the admission of Jeshua?

A) Debit Cash for $200,000,credit Able,Capital for $32,000,credit Bligh,Capital for $32,000,credit Coulter,Capital for $16,000,and credit Jeshua,Capital for $120,000.
B) Debit Cash for $80,000 and credit Jeshua,Capital for $80,000.
C) Debit Jeshua,Capital for $80,000 and credit Cash for $80,000.
D) Debit Jeshua,Capital for $200,000 and credit Cash for $200,000.
E) Debit Cash for $200,000 and credit Jeshua,Capital for $200,000.