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)

 

Check your understanding

 

 

Accumulated Profits and Losses on Retirement and Death of Partner