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6 May, 2015 - 17:10

Separate entries are required for each member that joins a partnership. A monetary value is assigned to all non-cash assets contributed by each partner. Only receivables which are collectible should be recorded in the partnerships books. Any liability entered into by members of the partnership becomes a liability of the newly formed business. To record the initial investment, entries are performed to debit assets and credit liabilities. The net difference between assets and liabilities is a credit to the capital account of the partner.