Bill pays Steve $13,000 for his $9,000 interest in a partnership. On the partnership books:
A) Bill will have capital of $9,000.
B) Bill will have capital of $13,000.
C) Bill will have capital of $22,000.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

The partnership books will reflect the capital account of the partner being replaced, which is $9,000, regardless of the amount Bill paid.

Bill Pays Steve $13,000 for His $9,000 Interest in a Partnership