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