Partnership Accounting

Partnership Accounting - Partnership Accounting...

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Partnership Accounting Except for the number of partners' equity accounts, accounting for a partnership is the same as  accounting for a sole proprietor. Each partner has a separate capital account for investments and  his/her share of net income or loss, and a separate withdrawal account. A  withdrawal account  is  used to track the amount taken from the business for personal use. The net income or loss is added  to the capital accounts in the closing process. The withdrawal account is also closed to the capital  account in the closing process.  Asset contributions to partnerships When a partnership is formed or a partner is added and contributes assets other than cash, the  partnership establishes the net realizable or fair market value for the assets. For example, if the 
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