Bill pays Steve $9,000 for his $7,000 interest in a partnership.On the partnership books:

Name: Bill pays Steve $9,000 for his $7,000 interest in a partnership.On the partnership books:
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When Bill pays Steve $9,000 for his $7,000 interest in a partnership, the partnership books will reflect Bill having capital of $7,000, which represents the value of Steve's interest that he acquired. The extra $2,000 that Bill paid Steve will be recorded as a gain on the books.

Bill Pays Steve $9,000 for His $7,000 Interest in a Partnership.On