Capital Accounts of Partners on Admission
Partners' Capitals can be Fixed or Fluctuating. Whatever may be the type, the entries will be made as per the following sides:
Capital/Current Accounts of partners
Debit Amounts | Credit Amounts |
To Current A/c ( debit)
To Accumulated Losses (shared in old ratio) To Goodwill( written off or adjusted) To Asset A/c (asset taken over) To Revaluation A/c (loss on revaluation) To Bank A/c (Balancing figure-payment) To Balance c/d( closing balance) |
By Balance B/d (opening balance)
By Cash/Bank A/c ( cash brought by new partner) By Premium A/c ( shared by old partners in Sacrifice Ratio) By Accumulated Profits (shared in Old ratio) By Goodwill( adjusted) By Liability A/c (liability taken over) By Revaluation A/c (profit on revaluation ) By Bank( Additional capital brought) |
Cash/Bank account
Debit Amounts | Credit Amounts |
To Balance B/d (opening balance)
To Asset A/c ( Asset sold, if any) To Liability A/c ( borrowed loan ,if any) To New partner’s Capital A/c (Capital) To Premium A/c( Premium brought) To Partner’s capital (additional capital brought) |
By Liability A/c (repayment, if any)
By Asset A/c (purchase ,if any) By Partners’ Capital A/c (withdrawal) By Balance c/d (closing balance) |
Adjustment of Capitals on admission of Partner
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