USA Partner Bought in

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My business partner and I took on another partner who bought a percentage of ownership in our company for a specific amount of money. How do we class the money she paid? The funds were deposited into the business account, and this was not a loan to the business. Is this considered her equity?


Thanks
 
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Dec 23, 2010
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Yes. The offset to the debit to "cash" will be a credit to some equity account. Which equity account will depend on the particular type of entity you have, and the way your chart of accounts is set up.
 

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