The equity of the partnership are reduced by the purchase price.
The required details about purchase price is mentioned in below paragraph.
The sum an investor pays for an investment is referred to as the purchase price, and that amount becomes the investor's cost basis for determining gain or loss when the investment is sold. Any commission or sales fees paid for the investment are included in the purchase price, and the weighted average cost is applied when buying the same asset more than once. Therefore, in order to calculate the quantity of inventory acquisitions, the following procedures are needed: Get the initial and ending inventories' combined values, as well as the cost of the goods sold. Between the starting and ending inventories, subtract one. The cost of goods sold enlarges the gap between ending and beginning inventories.
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