If TLM receives a 15

If TLM receives a 15 - Existing Capital MJM, Capital $...

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If TLM receives a 15% interest in the partnership for his $30,000 investment, the partnership's cash  account would be increased (debited) by $30,000 and TLM's capital account would be increased  (credited) by $22,500 (15% × $150,000 new capital balance of partnership).
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Unformatted text preview: Existing Capital MJM, Capital $ 70,000 EAM, Capital 50,000 Total Existing Capital 120,000 Add: TLM Investment 30,000 New Capital Balance 150,000 TLM Ownership % 15 % TLM, Capital $ 22,500...
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