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Journal entry

anonymous (student) (750 Points)

07 May 2018

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

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9 Replies

Jeeva Thangavelu (Student CA Final ) (609 Points)
Replied 07 May 2018

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)

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satish (teaching) (2046 Points)
Replied 07 May 2018

is it separate organization or conversion of sole proprietorship in to partnership

anonymous (student) (750 Points)
Replied 08 May 2018

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

SEPARATE

anonymous (student) (750 Points)
Replied 08 May 2018

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

satish (teaching) (2046 Points)
Replied 08 May 2018

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

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anonymous (student) (750 Points)
Replied 09 May 2018

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???

Jeeva Thangavelu (Student CA Final ) (609 Points)
Replied 09 May 2018

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.