Selma pays Sally $34,121 for her 29% interest in a partnership with total net assets of $148,827. Determine the credit balance of Selma\'s capital account following this transaction. Select the correct answer. Solution Solution : Ans is C) $148,827 Explanation : Appropriations , drawings and other adjustments are not recorded in Capital Accounts . Hence credit balance of Selma\'s capital account will be $148,827 viz the total net assets. .

1. Selma pays Sally $34,121 for her 29% interest in a partnership with total net assets of $148,827.
Determine the credit balance of Selma's capital account following this transaction.
Select the correct answer.
A) $34,121
B) $43,160
C) $148,827
D) $29
Solution
Solution :
Ans is C) $148,827
Explanation : Appropriations , drawings and other adjustments are not recorded in Capital
Accounts . Hence credit balance of Selma's capital account will be $148,827 viz the total net
assets.