If an individual invests more cash for an interest in an existing partnership than the book value of his or her interests,an entry is made to debit
A) Cash and credit the capital account of each existing partner.
B) Cash and credit the drawing account of each existing partner.
C) Cash and credit the Income Summary account for the excess.
D) each existing partner's capital account and credit Cash.

Question

Quizplus · Accepted Answer

When an individual invests more cash than the book value of their interest in an existing partnership, the excess amount is credited to the capital accounts of the existing partners, reflecting an increase in their equity due to the new investment.

If an Individual Invests More Cash for an Interest in an Existing