Different Business Entities. Commercial Organizations Sole proprietorship Partnership, and Limited Company In commercial organizations profit is distributed among the owners of the business. Different Business Entities. Non-Commercial Organizations Co-operative institutions NGO’s Trusts
Debit Proprietor’s Drawing
NOTE – height of the rows should be more than the font size. This improves visibility on TV.
Debit Cash / Bank
Credit Partner’s Capital Account
Separate capital account is opened in general ledger for each partner.
Debit Individual Partner’s Current Account
Credit Cash / Bank
Debit Bank / cash
Credit Individual Partner’s Current Account
Debit Profit and Loss Appropriation Account
Credit Partner A’s Current Account
Credit Partner B’s Current Account
Credit Partner C’s Current Account