If a partner is retiring from a partnership and sells his or her interest to another individual for $20,000 cash, the journal entry would debit cash and credit the withdrawing partner's capital account. debit the withdrawing partner's capital account and credit the new partner's capital account. debit the new partner's capital account and credit the withdrawing partner's account. debit cash and credit the new partner's capital account.

If a partner is retiring from a partnership and sells his or her interest to another individual for $20,000 cash, the journal entry would debit cash and credit the withdrawing partner's capital account. debit the withdrawing partner's capital account and credit the new partner's capital account. debit the new partner's capital account and credit the withdrawing partner's account. debit cash and credit the new partner's capital account.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 15MC: When a partnership dissolves, the first step in the dissolution process is to ________. A. allocate...

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