After the partnership had been operating for a year, the Capital accounts of Bob and Kim are

Question:

After the partnership had been operating for a year, the Capital accounts of Bob and Kim are $15,000 and $10,000, respectively. Kim withdraws from the partnership by selling her interest in the business to Sonia for $8,000. What will be the Capital account balances of the partners in the new Bob and Sonia partnership? Prepare the entry in Journal form to record the transfer of ownership on the partnership books.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...