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)