Capital Accounts of Partners on Retirement
Capital Accounts or Current Accounts(as the case may be)
Debit Amounts | Credit Amounts |
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 Cash/Bank A/c ( cash paid to retiring or other partner) To Partner’s Loan A/c( retiring partner’s loan) To Balance c/d( closing balance) |
By Balance B/d (opening balance)
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 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 Cash/Bank A/c ( cash paid to retiring or other partner) By Balance c/d (closing balance) |