Journal entry

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)

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

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.

THANK YOU GUYS