The partnership journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting relating to partnerships.
In each case the partnership journal entries show the debit and credit account together with a brief narrative. For a fuller explanation of journal entries, view our examples section.
Partnership Journal Entries Examples
Partners capital introduced journal entry
Account
Debit
Credit
Bank account
XXX
Partner capital account
XXX
Partners drawings journal entry
Account
Debit
Credit
Partner current account
XXX
Bank account
XXX
Loan made by partner journal entry
Account
Debit
Credit
Bank account
XXX
Loan account
XXX
Interest on loan from partner journal entry
Account
Debit
Credit
Income statement
XXX
Interest payable
XXX
Profit for the year to appropriation account journal entry
Account
Debit
Credit
Income statement
XXX
Appropriation account
XXX
Partner salaries journal entry
Account
Debit
Credit
Appropriation account
XXX
Partner current account
XXX
Interest earned on capital journal entry
Account
Debit
Credit
Appropriation account
XXX
Partner current account
XXX
Interest charged on drawings journal entry
Account
Debit
Credit
Partner current account
XXX
Appropriation account
XXX
Partner share of profit journal entry
Account
Debit
Credit
Appropriation account
XXX
Partner current account
XXX
Partner share of loss journal entry
Account
Debit
Credit
Partner current account
XXX
Appropriation account
XXX
New partner admission at book value journal entry
Account
Debit
Credit
Cash
XXX
Capital – New partner
XXX
New partner admission – Goodwill method at greater than book value journal entry
Account
Debit
Credit
Cash
XXX
Goodwill
XXX
Capital – New partner
XXX
Capital – Existing partners
XXX
New partner admission – Goodwill method at less than book value journal entry
Account
Debit
Credit
Cash
XXX
Goodwill
XXX
Capital – New partner
XXX
New partner admission – Bonus method at greater than book value journal entry
Account
Debit
Credit
Cash
XXX
Capital – New partner
XXX
Capital – Existing partners
XXX
New partner admission – Bonus method at less than book value journal entry
Account
Debit
Credit
Cash
XXX
Capital – New partner
XXX
Capital – Existing partners
XXX
Last modified November 12th, 2019 by Michael Brown
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.
