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When a Withdrawing Partner Sells an Interest to the Partnership

Question 38

Multiple Choice

When a withdrawing partner sells an interest to the partnership rather than to an individual partner, the bonus or goodwill methods may be employed.What is the likely journal entry that would reflect this transaction?


A) ​Debit to Partners capital
B) ​Debit to Partners Drawing
C) ​Debit to Cash
D) ​Debit to Expense

Correct Answer:

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