Question -
Answer -
(i) These items get credited:
1. Opening capital balance
2. Additional capital or Fresh capital that is added to the business.
These items get debited:
1. Part of capital that is withdrawn.
2. Closing capital balance
(ii)These items get debited
1. Opening capital balance
2. Fresh capital added in the accounting period
3. Salaries paid to partners
4. Profit share
5. Interest received on capital
These items get debited:
1. Withdrawals done during the accounting year.
2. Interest accumulated on withdrawals (drawing)
3. Closing capital balance
4. Loss on shares