Journal entry

WHAT WILL BE THE JOURNAL ENTRY IF A PERSON HAVING A PRORIETORSHIP CONCERN INTRODUCE CAPITAL IN HIS PARTHERSHIP FIRM

Replies (9)

If capital is in nature of cash/bank then,

Cash/Bank a/c Dr.    XXX

   To Partner A/c                XXX

(Being cash/bank brought in as capital/additional capital by partner)

If capital is in nature of asset then,

Fixed Asset/Stock/Liability a/c Dr.    XXX

   To Partner A/c                                                      XXX

(Being capital/additional capital brought in by partner as fixed asset/Stock/ by settlement of liability of the firm)

is it separate organization or conversion of sole proprietorship in to partnership
Originally posted by : satish
is it separate organization or conversion of sole proprietorship in to partnership

SEPARATE

Originally posted by : Jeeva Thangavelu
If capital is in nature of cash/bank then,

Cash/Bank a/c Dr.    XXX

   To Partner A/c                XXX

(Being cash/bank brought in as capital/additional capital by partner)

If capital is in nature of asset then,

Fixed Asset/Stock/Liability a/c Dr.    XXX

   To Partner A/c                                                      XXX

(Being capital/additional capital brought in by partner as fixed asset/Stock/ by settlement of liability of the firm)

 

THIS IS CORRECT ENTRY BUT HOW WILL I REFLECT IT IN PROPRIETORSHIP BOOKS

entry in books ( not in firm)
if sole proprietorship business fund used then
Investment in firm a/c. Dr.
to cash or bank a/c
Originally posted by : satish
entry in books ( not in firm)if sole proprietorship business fund used thenInvestment in firm a/c. Dr. to cash or bank a/c

 

ok.. 

 

and how will it be shown in firm books? 

bank/cash a/c dr

to proprietor a/c???

just like i have replied above enrty to be made in firm books sir.. He is a Partner in firm and so proprietor account is irrelavant. Credit partners current/capital account.

cash / bank a/c. Dr.
To partner's capital A/c

THANK YOU GUYS

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