A new partner may be admitted in the partner for cash or non cash assets. The new partner gets his share of partnership from the old partners. New partner’s capital account is credited and assets account debited at the time of admission into the partnership. To prepare: the journal entry for the purchase of partnership interest. The journal entry for the purchase of partnership interest is as follows: Account title Debit Credit C’s capital $ 10,000 A’s capital $ 10,000 S’s Capital $ 20,000 (being partnership interest purchased by new partner from old partners)

Financial Accounting: Information for Decisions

8th Edition

ISBN: 9781259533006

Author: John J Wild

Publisher: McGraw-Hill Education

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Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm …

Partner Admission and Withdrawal

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