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In this lecture, the focus is on partnerships and the process of selling a partnership interest. Key points include describing the sale process, creating journal entries for the transaction, and understanding the impact on trial balance accounts. The lecture will outline how the sale affects capital accounts, using a problem to illustrate the transaction. Students will examine changes in the capital accounts through both a trial balance format and a worksheet. The simplified accounts discussed will include only cash as an asset, accounts payable as liabilities, and the capital accounts, in addition to the income statement.
