Anjali and Nithya are partners of a firm sharing profits and losses in the ratio of 5 : 3. They admit Pramila on 1.1.2018. On that date, their balance sheet showed an accumulated loss of - Accountancy

Question

Anjali and Nithya are partners of a firm sharing profits and losses in the ratio of 5 : 3. They admit Pramila on 1.1.2018. On that date, their balance sheet showed an accumulated loss of ₹ 40,000 on the asset side of the balance sheet. Give the journal entry to transfer the accumulated loss on admission.

Journal Entry

Solution

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
	Anjali Capital A/c ........Dr. Nithya Capital A/c .........Dr. To Profit and Loss A/c (Accumulated loss distributed to old partners in old profit ratio)		25,000 15,000 -	- - 40,000