The withdrawal or death of a partner dissolves a partnership. A partnership can operate undisturbed only if the remaining partners agree to purchase the withdrawing partner's interest. In the event of the death of a partner, a stipulation in the partnership agreement may allow a business to operate for a period of time until assets are transferred to the deceased's estate. When a withdrawing partner's assets are bought out by existing partners, only capital accounts are effected.
General Journal
Date Account title and explanation Post ref. Debit Credit
FGSDFG
FDSAF
DFSAF
FDSA
FDAS
If a partner is paid from assets of the business, the result will be a decrease in asset and capital accounts.
General Journal
Date Account title and explanation Post ref. Debit Credit
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