partnership accounting

when one partner retires from the firm and he is obliged to get Rs.150000 and he would acquire from the other partner . But his capital account showed a balance of 1 lakh. How this be accounted?
Replies (1)
old partner capital a/c dr 150000 to retiring partner a/c 150000...150000 will be paid from bank a/c of firm,please distinct cash and settlment separately..hence firm gave remaining 50000 it is treated as drawing of old partner hence debited to drawing a/c which ultimately reduces capital...now older partner shows debit balance of 50000..which is asset or reduction of capital(liability) to firm..

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