Question

A partner withdraws from a partnership by selling her interest to another person who currently is not associated with the firm. As a result of this transaction, the capital account balance of the other partners in the partnership a.may increase, decrease, or remain the same. b.will increase. c.will decrease. d.will remain the same.

Answer 1

Answer:

The answer is letter D.

Explanation:

A partner withdraws from a partnership by selling her interest to another person who currently is not associated with the firm. As a result of this transaction, the capital account balance of the other partners in the partnership wil remain the same.