A partner withdraws from a partnership by selling her interest to another person not currently associated with the firm. As a result of this transaction, the capital account balances of the remaining partners remain unaffected.

When a partner decides to leave a partnership and sells her interest to someone outside the current makeup of the firm, it's important to understand that this transaction is between the departing partner and the incoming partner. Here's what happens in this scenario:

1. The departing partner agrees to sell her ownership interest, which includes her share of the profits, assets, and possibly liabilities, to an external party. 2. The external party pays the departing partner directly for this interest. 3. The capital accounts of the remaining partners are not involved in this transaction, meaning that they don't contribute capital to the new partner, nor do they receive any capital from them. 4. As a result, the capital account balances of the remaining partners remain unchanged. The only thing that changes is the identity of the owners of the partnership. 5. Typically, the new partner's capital account is then established with the amount they purchased the interest for, and the departing partner's capital account is closed out. 6. The partnership agreement may require consent by the existing partners for this transaction to occur and for the new partner to be admitted to the partnership.

Assuming that all legal and partnership agreement procedures are followed, the mechanics of this transaction are quite similar to a private sale of ownership in any business. The remaining partners continue their business operations with the same capital accounts as before, and the only change is with respect to who holds ownership in the business.

Extra: Understanding partnerships is fundamental in learning how businesses operate. A partnership is a type of business entity where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement. This agreement outlines how profits and losses are shared, the responsibilities of each partner, and the procedures for changes in the partnership, such as the admission of new partners and the exit of existing partners.

Each partner has a capital account which reflects their contributions to the partnership in terms of cash, property, or other assets minus any withdrawals. The capital accounts also change according to the share of profit or loss assigned to each partner, as governed by the partnership agreement.

When a partner wants to leave a partnership, they may sell their interest with the consent of the other partners. This can have an impact on the partnership's operations, taxes, and remaining partners' responsibilities and authority. However, if the transition is managed according to the agreement and with proper legal protocols, it doesn't necessarily affect the capital accounts of the other partners, as highlighted in the initial explanation. A new partner coming in replaces the equity of the withdrawing partner, making what is often a seamless transition in terms of the partnership's capital structure. It is important to acknowledge that the specifics can vary depending on the legal jurisdiction and the specific terms of the partnership agreement in question.