Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances...
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Accounting
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?
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