28 August 2021
MY CLIENT IS A PARTNER IN TWO BUSINESS CONCERNS AND HE IS A SOLE PROPRIETOR IN ANOTHER ONE CONCERN.MY QUERY IS HOW TO SHOW HIS CAPITAL ACCOUNT BALANCE IN WHICH HE IS A PARTNER IN BALANCE SHEET? WHETHER IT COMES TO CURRENT ASSETS DIRECTLY OR I HAVE TO MAKE ANY JOURNAL ENTRY FOR THIS? PLEASE GUIDE ME
28 August 2021
In Branch and Division section Show it as " Investment in Partnership Firm 1" , " Investment in Partnership Firm 2" and " Investment in Proprietorship Firm 1"
28 August 2021
THANK YOU FOR YOUR RESPONSE. MAY I SHOW THE ENTIRE CLOSING BALANCE OR I HAVE TO MAKE ANY JOURNAL ENTRIES? BECAUSE HE WITHDREW SOME CASH FRO BOTH THE PARTNERSHIP FIRMS/
28 August 2021
Closing Balance of Capital Account = Opening Balance + Additions in cash or through bank + Profit of Current Year(if any) - Withdrawns in cash or through bank - Loss of Current year(if any).
Reflect Closing Balance as on 31.03.2021 in Individual Balance Sheet
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