Partnership leased a pub and had a cost of £80k for leasehold property on the balance sheet
Partnership now purchases freehold of the property
What happens to the £80k? Does it get added on to the freehold value?
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More information needed... get out the anglepoise light and int
Have you seen any documentation relating to the £80k paid? Are you sure it related directly to the leasehold property and not anything else like goodwill? If it related to a premium on a new lease what happened to the lease when the property was bought by the partnership? etc.. Once you establish exactly what happened, the correct accounting treatment will follow.