Question

Rogers and Wissinger have partnership capital balances of $576000 and $432000, respectively. Wissinger negotiates to sell his partnership interest to Mergenthaler for $503700. Rogers agrees to accept Mergenthaler as a new partner. The partnership entry to record this transaction is

Answer 1

Wissinger, Capital 432000

Mergenthaler, Capital 432000

Step-by-step explanation:

A partnership is a form of business whereby two or more people come together to manage s business and achieve its goals and objectives.

Based on the scenario in the question, the partnership firm don't receive any cash since the share was being transferred from Wissinger to Mergenthaler. Therefore, the partnership entry to record this transaction will be:

Wissinger, Capital 432000

Mergenthaler, Capital 432000

This shows the Wissinger's capital balance that was transferred to Mergenthaler.