If a withdrawing partner receives assets worth more than the book value of her equity, the capital accounts of the remaining partners decrease.

Question

Quizplus · Accepted Answer

When a withdrawing partner receives assets worth more than the book value of her equity, the excess amount is distributed among the remaining partners. This distribution reduces the capital accounts of the remaining partners since they are responsible for sharing the excess amount.

If a Withdrawing Partner Receives Assets Worth More Than the Book