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Selma pays Sally $34,121 for her 29% interest in a partnership with total net assets of $148,827.
Determine the credit balance of Selma's capital account following this transaction.
Select the correct answer.
A) $34,121
B) $43,160
C) $148,827
D) $29
Solution
Solution :
Ans is C) $148,827
Explanation : Appropriations , drawings and other adjustments are not recorded in Capital
Accounts . Hence credit balance of Selma's capital account will be $148,827 viz the total net
assets.

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Selma pays Sally $34-121 for her 29- interest in a partnership with to.docx

  • 1. Selma pays Sally $34,121 for her 29% interest in a partnership with total net assets of $148,827. Determine the credit balance of Selma's capital account following this transaction. Select the correct answer. A) $34,121 B) $43,160 C) $148,827 D) $29 Solution Solution : Ans is C) $148,827 Explanation : Appropriations , drawings and other adjustments are not recorded in Capital Accounts . Hence credit balance of Selma's capital account will be $148,827 viz the total net assets.