If a partnership borrows money to invest in another partnership, does this become an asset on the balance sheet? If so is it the same as the investment (or borrowed amount) amount and does it change after the liability is paid off?
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If you borrow money and purchase interest in partnership, you would have liability of the loan and asset of the partnership you put the money into.
When you make a loan payment you're taking cash and putting it towards the loan. So it reduces the cash (asset) and the liability (loan).
Assets = Liabilities + Owners equity. -
Thank you, that is what I've done.Comment
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