Journal entries (Accountancy)



Journal entries (Accountancy)
1.       When new partner brought capital and goodwill
                                Cash account   dr.                  (debit)
                                To new partner’s account    (credit)
                                To goodwill account              (credit)

2.       When amount of goodwill distributed among old partner’s in the sacrificing.
Goodwill account    Dr.
To old partner’s capital account

3.      When amount of goodwill withdraw among old partner
Old partner’s capital account  Dr.
To cash account

4.    When p/l credit balance given in question
p/l account  Dr.
To all partner’s capital account

5.       When p/l debit balance given in question
All partners’ capital account  Dr.
To p/l account

6.      When general reserve is given
General reserve account  Dr.
To all partner’s capital account

7.       When account of goodwill already appeared in the book
Old partner’s capital account   Dr.
To goodwill account

8.      When account of goodwill doesn’t appeare in the book
New partner’s capital account   Dr.
To old partner’s capital account


Pratik Kumar

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