When a partner withdraws from the partnership,his capital account is always debited for the amount of cash taken.

Question

Quizplus · Accepted Answer

When a partner withdraws from the partnership, the capital account is debited for the value of the partner's share of the partnership assets, not necessarily the amount of cash taken. The amount of cash taken may be less than or greater than the partner's share of the assets, depending on the circumstances of the withdrawal.

When a Partner Withdraws from the Partnership,his Capital Account Is