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) |
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Accumulated Profits and Losses on Retirement and Death of Partner