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.
For a fuller explanation of partnership journal entries, view our tutorials on partnership formation, partnership income distribution, and partnership liquidation.
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 |
|
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 in 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 BSc from Loughborough University.
