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Statement of Withdrawal from a Partnership Operating under a  Form

Statement of Withdrawal from a Partnership Operating under a Form

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hello and welcome in this lecture video we're going to be talking about the accounting for part partners withdrawing from the partnership okay so let's talk about we have three different situations we have a no bonus example and then we have a bonus to remaining partners example and then on the next page we have a bonus to the withdrawing partner okay so in the no bonus example basically what what's happening is that the partner is going to take out cash equal to his or her balance in capital okay so let's say that the partners have the following cash balances Perez 38,000 Kayla 84 and reseed 38 the partners share income and loss equally Perez gets $38,000 cash well that's equal to his balance and capital okay so what we're gonna do is we're going to decrease prez's capital balance and then also decrease cash okay because and how do we decrease cash right we're paying out cash we credit cash how do we decrease capital capital's equity and the way to decrease equity is with the debit so

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