Partner Leaves Partnership Cash Greater then Capital Acco

The journal entry for a partner leaving a partnership. When a partner leaves the partnership we will need to take the partnership capital account down to zero with an adjusting journal entry. The partners leaving the partnership will generally is paid in some format, topically with cash. It would be easiest of the partner gets paid an amount equal to the partnership capital account resulting in a credit to cash and a debit to the capital account. It is often the case, however, that the partners is paid more or less then the amount of their capital account. The difference will be allocated to the remaining partners either increasing or decreasing their capital accounts. For more accounting information see website. http://accountinginstruction.info/cou..

 

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