
Concept Introduction:
Capital Contribution: Capital Contribution is the amount contributed by Partners in a firm. It can be in Cash or in Kind. Like Partner can bring any asset as a capital contribution.
T Account: A T-account is the graphical representation of a general ledger that records business transactions. T Account looks like the letter T, where Debit entries are recorded at the left side and credit entries recorded at right side and account title will be at the top.
The Rules for preparing the T-Shape Accounts is mentioned below:
Nature of Account | Debit Side | Credit Side |
---|---|---|
Asset Account | Increases | Decrease |
Liabilities Account | Decreases | Increase |
Revenue Account | Decreases | Increase |
Expenses Account | Increases | Decrease |
Capital Account | Decreases | Increase |
Requirement 1
To Calculate: The loss borne by Brown & Bothwell.in June 2016
Requirement 2
To Compute & Prepare: Partner’s Capital Account Balances as on 30th June 16 and Partner’s Capital account of Brown and Bothwell

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Chapter 12 Solutions
ACCOUNTING PRINCIPLES 222 5/16 >C<
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