Recognition of neither Bonus nor Goodwill
Item that occurs when the new partner's investment
equals
the new partner's capital credit and no change occurs in the old partners' capital balances.
Bonus to Old Partners
Item that occurs when the new partner's investment
exceeds
the new partner's capital credit.
Bonus to New Partner
Item that occurs when the new partner's capital credit
exceeds
the new partner's investment and a
decrease
occurs in the old partners' capital balances.
New Partner's Goodwill Recognized
Item that occurs when the new partner's capital credit
exceeds
the new partner's investment and no change occurs in the old partners' capital balances.
Old Partners' Goodwill Recognized
Item that occurs when the new partner's investment
equals
the new partner's capital credit and an
increase
occurs in the old partners' capital balance.
Old Partners' Goodwill Recognized
Recognition of an intangible asset upon a new partner's admission to the partnership that results in
increases
in the old partners' capital balances.
Drawing Account
Account that increases when a partner takes assets out of the partnership in anticipation of partnership net income
Capital Account
Account that increases for the fair value of non-cash assets invested by a partner
Account closed to the capital account at year end
Drawing Account
Limited Partner
Partner who cannot actively participate in the management of the partnership
General Partner
Partner who actively participates in the partnership management and who is personally liable for the partnership's debts
Note Payable to a Partner
Deduction of interest expense on this payable to determine the partnership's net income
Note Payable to a Partner
Related-party transaction that must be disclosed in the notes to the financial statements
Interest on Capital Accounts
Cost not deducted to determine the partnership's net income for the period
Partnership Income or Loss Shared Equally
The allocation of a partnership profits and losses when nothing is stated in the partnership agreement