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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