Question

Amit and Vinay are partners in a firm sharing profits and losses in 3 : 1 ratio. On 1.1.2007, they admitted Ranjan as a partner. On Ranjan's admission, the profit and loss account of Amit and Vinay showed a debit balance of Rs. 40,000. Record necessary journal entry for the treatment of the same.

Answer 1

$\text{Journal Entry}$
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{L.F}& \text{Amt.(Dr)}& \text{Amt.(Cr)}\\ \text{(i)}& \text{Amit's Capital A/c}\text{Dr}& & 30,000& \\ & \text{Vinay's Capital A/c}\text{Dr}& & 10,000& \\ & \text{To Profit and Loss A/c}& & & 40,000\\ & \text{(Debit balance of profit and loss account}& & & \\ & \text{transferred to capital account of old partners.)}& & & \end{array}$