Profits and losses equally

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Reference no: EM13918729

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

Floyd 50,000

Merriam 20,000

They agreed to admit Ramelow into the business for a one-third interest in the new partnership. He had to bring in a cash contribution of $20,000 for the same. Assuming that Floyd and Merriam shared profits and losses equally before the admission of Ramelow. What journal entry is used to record the above admission?

Reference no: EM13918729

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