I have studied almost all post in this forum related to capital account.
Now, what I understand is explained below-
Capital Accounts (Partnership)
- Partner # 1
- Partner # 2
- Partner # …
When a Partner draws money-
…
Spend Money
Credit > Cash Account
Debit > Capital Account > Partner > Drawings
When a Partner invest money-
…
Receive Money
Debit > Cash Account
Credit > Capital Account > Partner > Funds Contributed
When distributing profit-
…
Journal Entry
Debit > Retained Earnings
Credit > Capital Account > Partner > Share of Profit
When pay more or less of the profit as appeared in the Amount to Pay column-
…
Spend Money
Credit > Cash Account
Debit > Capital Account > Partner > Drawings
AM I CORRECT? OR MISSING SOMETHING?