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Question
In case of admission of a new partner, give accounting treatment of accumulated profits and losses through one journal entry when partners decide not to distribute such profit/loss.
Journal Entry
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Solution
| Journal Entry | ||||
| Date | particulars | L.F. | Debit (₹) | Credit (₹) |
| (i) | In case of profits: | |||
| Gaining Partner’s Capital/Current A/cs (including new partner) ...Dr. | xxx | |||
| To Sacrificing Partner’s Capital/Current A/cs | xxx | |||
| (ii) | In case of losses: | |||
| Sacrificing Partner’s Capital/Current A/cs (including new partner) ...Dr. | xxx | |||
| To Gaining Partner’s Capital/Current A/cs | xxx | |||
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