Page 52 - MAZOO EBOOK 1_Neat
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After this entry, the old partnership is ended and a new partnership is formed. The only change
in the balance sheet will be the substitution of Knight for Saar. After the new partnership is
formed, a new contract is written.
Withdrawal of a Partner
Assume that Abdullah wants to retire and will accept cash equal to her equity. Assume further
that assets and liabilities are the same as presented on the balance sheet on page 386 and that
the withdrawal of cash by Abdullah will not jeopardize the firm’s cash position. The general
journal entry to record the withdrawal of Abdullah is as follows.
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