Practicing Success
X,Y & Z are partners in the firm sharing profits and losses in the ratio of 3:2:1. Z retires from the firm on 31st March 2021. On the date of retirement of Z, a debit balance of profit & loss A/c of ₹36000 appeared in the books of account. What will be the journal entry for this? |
X's Capital A/c Dr.. ₹18000 X's Capital A/c Dr.. ₹18000 Z's Capital A/c Dr.. ₹18000 P& L A/c Dr.. ₹36000 |
X's Capital A/c Dr.. ₹18000 |
As, the debit balance of profit and loss account is a loss for the firm that's why it is debited to partners' capital A/c. |