Profit share entries

Please follow the entries at the end of each month.

Profit and Loss A/c Dr

To Partners Capital A/c

With the amount of their ratios.

Beginning of each month.

Partners Capital A/cs Dr.

To Cash/Bank account.

With the amounts actual withdrawn by the partners

entry at the end of each month 

1. at the end of month 

Profit and loss a/c       Dr          .........

            To Partners Capital a/c             .........

2. at the time of actual payment

Partners Capital a/c     Dr          ........

             To Cash/Bank A/c                    .........