Raul and Bianca are partners. Raul has a capital balance of $50,000 and Bianca h

Question

Raul and Bianca are partners. Raul has a capital balance of $50,000 and Bianca has a capital balance of $37,000. Bianca sells half of her ownership interest to Bill for $20,500. Which of the following is true of the journal entry to record this transaction? O A. Bianca, Capital is credited for $20,500 and Raul, Capital is debited for $18,500 O B. Bill, capital is credited for $18,500 and Raul, Capital is debited for $20,500 ° C. Bianca, capital is credited for $20,500 and Raul, capital is debited for $20,500. O D. Bill, Capital is credited for $18,500 and Bianca, Capital is debited for $18,500.

Explanation / Answer

Answer is C

Bianca has a credit balance of 37000 in capital account.So when her interest is sold her capital balance will be reduced by 20500 and rauls capital will be increased by that amount.Hence C is the correct option

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