After the partnership has been operating for a year, the Capital accounts of Martin and Steven are $15,000 and $10,000, respectively. Steven withdraws from the partnership by selling his interest in the business to Sania for $8,000. What will be the Capital account balances of the partners in the new Martin and Sania partnership? Prepare the journal entry to record the transfer of ownership on the partnership books.

Answer rating: 100% (QA)

The following is the accounting equation for the transfer of ownership on the partnershi... View the full answer