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Amjad and Ahmed, partners of Amjad and Ahmed LLP who share net income and losses...

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Accounting

Amjad and Ahmed, partners of Amjad and Ahmed LLP who share net income and losses 60% and 40%, respectively, had capital account balances of $70,000 and $60,000, respectively, on June 30, 2020. On that date Amjad and Ahmed agreed to admit Asaad to Amjad, Ahmed & Asaad LLP with a one-fourth interest in total partnership capital and a one-third share of net income or losses, for a cashinvestment of $30,000.the capital balance of Asaad after admission of Asaad is: Select one:

a. $44,000.

b. $36,000.

c. $30,000.

d. $40,000.

Amjad and Ahmed, partners of Amjad and Ahmed LLP who share net income and losses 60% and 40%, respectively, had capital account balances of $70,000 and $60,000, respectively, on June 30, 2020. On that date Amjad and Ahmed agreed to admit Asaad to Amjad, Ahmed & Asaad LLP, Asaad purchased 30% of Amjad capital interest for $55,000 with a one-third share of net income or losses. The journal entry for the admission of Asaad is: Select one:

a. Debit to Asaad capital $21,000 and Credit to Amjad capital $21,000.

b. Debit to Amjad capital $21,000 and Credit to Asaad capital $21,000.

c. Debit to Asaad capital $55,000 and Credit to Amjad capital $55,000.

d. Debit to Amjad capital $55,000 and Credit to Asaad capital $55,000.

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