What is the treatment of adjustment when half of the investment given in balance sheet are taken over by an old partner?
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When the investment will be taken by the old partner then the entry will be ——
1. OLD PARTNER A/C dr. (Half amt of inv.)
TO INVESTMENTS A/C
2. TREATMENT IN CAPITAL ACCOUNT
TO INVESTMENTS (with half amount)
in the column of old partner
3. TREATMENT IN BALANCE SHEET
(ON ASSET SIDE)
INVESTMENTS WILL BE RECORDED WITH REMAINING AMOUNT ONLY i.e half amount
1. OLD PARTNER A/C dr. (Half amt of inv.)
TO INVESTMENTS A/C
2. TREATMENT IN CAPITAL ACCOUNT
TO INVESTMENTS (with half amount)
in the column of old partner
3. TREATMENT IN BALANCE SHEET
(ON ASSET SIDE)
INVESTMENTS WILL BE RECORDED WITH REMAINING AMOUNT ONLY i.e half amount
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