In the ad partnership, allen's capital is $140,000 and daniel's is $40,000 and they share income in a 3: 1 ratio, respectively. they decide to admit david to the partnership. each of the following questions is independent of the others.
refer to the information provided above. david invests $40,000 for a one-fifth interest in the total capital of $220,000. the journal to record david's admission into the partnership will include:
a. a credit to cash for $40,000.
b. a debit to allen, capital for $3,000.
c. a credit to david, capital for $40,000.
d. a credit to daniel, capital for $1,000.