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Capital intro by partner

Accounting Entries 399 views 2 replies

what would be the accounting entry for the partner introduce capital in a firm and in his personal a/c (individual)?. in which head the same has to show respectively?.

Replies (2)

In the Books of Firm:
 

for capital Indoduced:

  • Cash A/c or Bank A/c  Dr.
    To Partner's Caapital A/c (if No Fixed capital is maintained) or
    To Partner's Current A/c

For Loan given by partner:

  • Cash A/c or Bank A/c  Dr.
    To Partner's Loan A/c (under Unsecured Loans)

In the books of Partner, show as investment (Capital Contribution) or Loans & Advances (any other Advances)

In books of firm

Cash/Bank Dr.

   To Partner Capital a/c

 

In Personal book of partner

investment At (Firm name )

   To Bank/cash

 

 


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