What is the journal entry to record the admission of a new partner who brings in

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Question: What is the journal entry to record the admission of a new partner who brings in cash?

Options:

Correct Answer: Debit Cash, Credit Partner\'s Capital Account

Solution:

When a new partner is admitted and brings in cash, the cash account is debited and the partner\'s capital account is credited.

What is the journal entry to record the admission of a new partner who brings in cash?

What is the journal entry to record the admission of a new partner who brings in cash?

Step 1: Identify the amount of cash the new partner is bringing into the partnership.
Step 2: Open the accounting journal to record the transaction.
Step 3: Debit the Cash account for the amount the new partner brings in. This means you increase the Cash account.
Step 4: Credit the new partner's Capital account for the same amount. This means you increase the partner's equity in the partnership.
Step 5: Write a brief description of the transaction, noting that it is for the admission of a new partner.

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