In short: This is a complete reference list of every journal entry format you need for CBSE Class 12 Accountancy 2027. Organised by chapter — Partnership Basics, Admission, Retirement, Dissolution, Share Capital, and Debentures — each entry shows the exact Dr/Cr format with narration. Bookmark this page. Open it while solving problems. Use it for last-day revision. There are 80+ distinct entry types across all chapters, and knowing them cold is the difference between 60 and 75 in Accountancy.
How to Use This Reference
This is not a reading post. This is a reference sheet. Use it:
- While solving problems — look up entries you are unsure about
- During revision — scan through to identify entries you have forgotten
- Before the exam — quick 30-minute skim to refresh all patterns
Every entry follows the format: Account to be Debited ... Dr. / To Account to be Credited. Narration is in brackets.
For marks distribution across chapters, refer to our Accountancy chapter-wise weightage guide.
Part 1: Partnership Accounts — Basic Concepts
1.1 Interest on Capital
Interest on Capital A/c Dr. [Amount]
To Partner's Capital A/c [Amount]
(Being interest on capital allowed to partners)
Note: If capitals are fluctuating, credit Capital A/c. If fixed, credit Current A/c.
1.2 Interest on Drawings
Partner's Capital A/c Dr. [Amount]
To Interest on Drawings A/c [Amount]
(Being interest on drawings charged to partners)
Product method: Sum of products × Rate / 12 × 100. For beginning-of-month drawings, average period = 6.5 months. For end-of-month, average = 5.5 months.
1.3 Partner's Salary
Profit & Loss Appropriation A/c Dr. [Amount]
To Partner's Capital A/c [Amount]
(Being salary allowed to partner as per deed)
1.4 Partner's Commission
Profit & Loss Appropriation A/c Dr. [Amount]
To Partner's Capital A/c [Amount]
(Being commission allowed to partner as per deed)
If commission is X% of profit after charging commission: Commission = Profit × X / (100 + X)
1.5 Transfer of Profit to Partners
Profit & Loss Appropriation A/c Dr. [Amount]
To Partner A's Capital A/c [Share]
To Partner B's Capital A/c [Share]
(Being profit distributed in the profit-sharing ratio)
1.6 Rent Paid to a Partner
Rent A/c Dr. [Amount]
To Cash/Bank A/c [Amount]
(Being rent paid to partner for use of property)
Rent is a charge against profit, not an appropriation. It goes to P&L Account, not Appropriation Account.
1.7 Interest on Partner's Loan
Interest on Partner's Loan A/c Dr. [Amount]
To Partner's Loan A/c [Amount]
(Being interest on loan allowed at 6% p.a. or as per deed)
1.8 Guarantee of Profit
Guaranteeing Partner's Capital A/c Dr. [Deficiency]
To Guaranteed Partner's Capital A/c [Deficiency]
(Being deficiency in guaranteed profit borne by guaranteeing partner)
1.9 Past Adjustments (Single Entry)
Partner Gaining Capital A/c Dr. [Amount]
To Partner Losing Capital A/c [Amount]
(Being adjustment for omission/error in past profit distribution)
Part 2: Change in Profit Sharing Ratio
2.1 Goodwill Adjustment (When Goodwill Is Not in Books)
Gaining Partner's Capital A/c Dr. [Amount]
To Sacrificing Partner's Capital A/c [Amount]
(Being goodwill adjusted on change in profit-sharing ratio)
2.2 Distribution of Reserves on Change
General Reserve A/c Dr. [Amount]
To Partner A's Capital A/c [Old ratio share]
To Partner B's Capital A/c [Old ratio share]
(Being reserves distributed in old ratio on change in PSR)
2.3 Workmen Compensation Fund (with claim)
Workmen Compensation Fund A/c Dr. [Full amount]
To Provision for Workmen Comp. A/c [Claim amount]
To Partner A's Capital A/c [Balance in old ratio]
To Partner B's Capital A/c [Balance in old ratio]
(Being WCF distributed after providing for claim)
Part 3: Admission of a Partner
3.1 Goodwill — Premium Method (Cash Brought In)
Cash/Bank A/c Dr. [Premium amount]
To Premium for Goodwill A/c [Premium amount]
(Being premium for goodwill brought in by new partner)
Premium for Goodwill A/c Dr. [Premium amount]
To Sacrificing Partner A's Capital A/c [Share]
To Sacrificing Partner B's Capital A/c [Share]
(Being premium distributed among sacrificing partners)
3.2 Goodwill — When New Partner Cannot Bring Premium
New Partner's Capital A/c Dr. [Premium amount]
To Sacrificing Partner A's Capital A/c [Share]
To Sacrificing Partner B's Capital A/c [Share]
(Being goodwill adjusted against new partner's capital)
3.3 Goodwill — Already Appearing in Books (to be written off)
Old Partner A's Capital A/c Dr. [Old ratio share]
Old Partner B's Capital A/c Dr. [Old ratio share]
To Goodwill A/c [Book value]
(Being existing goodwill written off in old ratio)
3.4 Revaluation Account Entries
For increase in asset value:
Asset A/c Dr. [Increase]
To Revaluation A/c [Increase]
For decrease in asset value:
Revaluation A/c Dr. [Decrease]
To Asset A/c [Decrease]
For increase in liability:
Revaluation A/c Dr. [Increase]
To Liability A/c [Increase]
For unrecorded asset:
Asset A/c Dr. [Value]
To Revaluation A/c [Value]
For unrecorded liability:
Revaluation A/c Dr. [Value]
To Liability A/c [Value]
Transfer of revaluation profit:
Revaluation A/c Dr. [Profit]
To Partner A's Capital A/c [Old ratio]
To Partner B's Capital A/c [Old ratio]
(Being revaluation profit distributed in old ratio)
Transfer of revaluation loss:
Partner A's Capital A/c Dr. [Old ratio]
Partner B's Capital A/c Dr. [Old ratio]
To Revaluation A/c [Loss]
(Being revaluation loss distributed in old ratio)
3.5 New Partner's Capital Introduction
Cash/Bank A/c Dr. [Amount]
To New Partner's Capital A/c [Amount]
(Being capital brought in by new partner)
3.6 Distribution of Accumulated Profits on Admission
General Reserve A/c Dr. [Amount]
P&L A/c (Cr. Balance) Dr. [Amount]
To Partner A's Capital A/c [Old ratio]
To Partner B's Capital A/c [Old ratio]
(Being accumulated profits distributed in old ratio)
3.7 Capital Adjustment After Admission
Partner's Capital A/c Dr. [Excess over required]
To Cash/Bank A/c [Amount withdrawn]
(Being excess capital withdrawn to adjust to required capital)
Cash/Bank A/c Dr. [Deficiency]
To Partner's Capital A/c [Amount brought in]
(Being additional capital brought in to meet required amount)
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Part 4: Retirement/Death of a Partner
4.1 Goodwill Adjustment on Retirement
Gaining Partner A's Capital A/c Dr. [Gaining ratio share]
Gaining Partner B's Capital A/c Dr. [Gaining ratio share]
To Retiring Partner's Capital A/c [Total goodwill share]
(Being retiring partner's share of goodwill credited)
4.2 Joint Life Policy (JLP) — Policy in Books
If JLP appears as asset and JLP Fund as liability:
JLP Fund A/c Dr. [Fund amount]
Bank A/c Dr. [Surrender/Claim value]
To JLP A/c [Book value of policy]
To Partner A's Capital A/c [Old ratio share of gain]
To Partner B's Capital A/c [Old ratio share of gain]
To Partner C's Capital A/c [Old ratio share of gain]
If only JLP Fund appears (no JLP asset):
JLP Fund A/c Dr. [Fund amount]
To Partner A's Capital A/c [Old ratio]
To Partner B's Capital A/c [Old ratio]
To Partner C's Capital A/c [Old ratio]
(Being JLP Fund distributed in old ratio)
Bank A/c Dr. [Surrender value]
To Partner A's Capital A/c [Old ratio]
To Partner B's Capital A/c [Old ratio]
To Partner C's Capital A/c [Old ratio]
(Being surrender value of policy received)
4.3 Retiring Partner's Loan Account
Retiring Partner's Capital A/c Dr. [Balance]
To Retiring Partner's Loan A/c [Balance]
(Being amount due transferred to loan account)
4.4 Settling Retiring Partner in Cash
Retiring Partner's Capital A/c Dr. [Balance]
To Cash/Bank A/c [Balance]
(Being retiring partner's dues settled in cash)
4.5 Executor's Account (Death of Partner)
Deceased Partner's Capital A/c Dr. [Balance]
To Deceased Partner's Executor's A/c [Balance]
(Being amount due to deceased partner transferred to executor)
Part 5: Dissolution of Partnership Firm
5.1 Transfer of Assets to Realisation Account
Realisation A/c Dr. [Total assets]
To Sundry Assets A/c [Individual amounts]
(Being assets transferred to Realisation Account)
Note: Cash/Bank is NOT transferred to Realisation Account.
5.2 Transfer of Liabilities to Realisation Account
Sundry Liabilities A/c Dr. [Total liabilities]
To Realisation A/c [Total liabilities]
(Being liabilities transferred to Realisation Account)
Note: Partner's Loan and Partner's Capital are NOT transferred.
5.3 Assets Realised
Cash/Bank A/c Dr. [Amount realised]
To Realisation A/c [Amount realised]
(Being assets realised in cash)
5.4 Liabilities Paid
Realisation A/c Dr. [Amount paid]
To Cash/Bank A/c [Amount paid]
(Being liabilities settled)
5.5 Realisation Expenses
Realisation A/c Dr. [Expenses]
To Cash/Bank A/c [Expenses]
(Being realisation expenses paid)
If a partner bears expenses (agreed):
Realisation A/c Dr. [Agreed amount]
To Partner's Capital A/c [Agreed amount]
(Being realisation expenses borne by partner)
5.6 Unrecorded Asset Realised
Cash/Bank A/c Dr. [Amount]
To Realisation A/c [Amount]
(Being unrecorded asset realised)
5.7 Asset Taken Over by Partner
Partner's Capital A/c Dr. [Agreed value]
To Realisation A/c [Agreed value]
(Being asset taken over by partner at agreed value)
5.8 Transfer of Realisation Profit/Loss
Profit:
Realisation A/c Dr. [Profit]
To Partner A's Capital A/c [PSR share]
To Partner B's Capital A/c [PSR share]
Loss:
Partner A's Capital A/c Dr. [PSR share]
Partner B's Capital A/c Dr. [PSR share]
To Realisation A/c [Loss]
5.9 Settlement of Partner's Loan
Partner's Loan A/c Dr. [Amount]
To Cash/Bank A/c [Amount]
(Being partner's loan repaid)
5.10 Final Settlement of Capital
Partner's Capital A/c Dr. [Balance]
To Cash/Bank A/c [Balance]
(Being final amount paid to partner)
Part 6: Company Accounts — Issue of Shares
6.1 Share Application Money Received
Bank A/c Dr. [Amount]
To Share Application A/c [Amount]
(Being application money received)
6.2 Application Money Transferred on Allotment
Share Application A/c Dr. [Amount]
To Share Capital A/c [Nominal value portion]
To Securities Premium A/c [Premium portion, if any]
To Share Allotment A/c [Excess adjusted]
(Being application money transferred)
6.3 Share Allotment Due
Share Allotment A/c Dr. [Amount due]
To Share Capital A/c [Nominal value]
To Securities Premium A/c [Premium, if applicable]
(Being allotment money due)
6.4 Allotment Money Received
Bank A/c Dr. [Amount]
To Share Allotment A/c [Amount]
(Being allotment money received)
6.5 Calls Made and Received
Share First Call A/c Dr. [Amount due]
To Share Capital A/c [Amount]
(Being first call money due)
Bank A/c Dr. [Amount received]
To Share First Call A/c [Amount]
(Being first call money received)
6.6 Forfeiture of Shares (Issued at Premium, Premium Received)
Share Capital A/c Dr. [Nominal value]
Securities Premium A/c Dr. [Premium not received]
To Share Forfeited A/c [Amount received]
To Share Allotment/Call A/c [Unpaid calls]
(Being shares forfeited for non-payment)
6.7 Reissue of Forfeited Shares
Bank A/c Dr. [Amount received on reissue]
Share Forfeited A/c Dr. [Discount on reissue]
To Share Capital A/c [Nominal value]
(Being forfeited shares reissued)
Transfer of balance in Share Forfeited A/c:
Share Forfeited A/c Dr. [Balance]
To Capital Reserve A/c [Balance]
(Being profit on reissue transferred to Capital Reserve)
6.8 Issue of Shares for Consideration Other Than Cash
Sundry Assets A/c / Vendor A/c Dr. [Purchase value]
To Share Capital A/c [Nominal value of shares]
To Securities Premium A/c [If issued at premium]
(Being shares issued to vendor)
Part 7: Company Accounts — Debentures
7.1 Issue of Debentures at Par
Bank A/c Dr. [Amount]
To Debentures A/c [Amount]
(Being debentures issued at par)
7.2 Issue of Debentures at Premium
Bank A/c Dr. [Issue price]
To Debentures A/c [Nominal value]
To Securities Premium A/c [Premium]
(Being debentures issued at premium)
7.3 Issue of Debentures at Discount
Bank A/c Dr. [Amount received]
Discount on Issue of Debentures A/c Dr. [Discount]
To Debentures A/c [Nominal value]
(Being debentures issued at discount)
7.4 Issue as Collateral Security
Debenture Suspense A/c Dr. [Nominal value]
To Debentures A/c [Nominal value]
(Being debentures issued as collateral security)
Reverse entry when loan is repaid:
Debentures A/c Dr. [Nominal value]
To Debenture Suspense A/c [Nominal value]
7.5 Interest on Debentures
Interest on Debentures A/c Dr. [Gross interest]
To Debentureholders' A/c [Net after TDS]
To TDS Payable A/c [TDS amount]
(Being interest on debentures due)
7.6 Debenture Redemption Reserve (DRR)
Surplus (P&L) A/c Dr. [10% of debentures]
To Debenture Redemption Reserve A/c [Amount]
(Being DRR created as per rules)
7.7 Redemption of Debentures
Debentures A/c Dr. [Nominal value]
Premium on Redemption A/c Dr. [Premium, if any]
To Debentureholders' A/c [Total amount payable]
(Being debentures due for redemption)
Debentureholders' A/c Dr. [Amount]
To Bank A/c [Amount]
(Being payment made to debentureholders)
7.8 Conversion of Debentures into Shares
Debentures A/c Dr. [Nominal value]
To Share Capital A/c [Nominal value of shares]
To Securities Premium A/c [Premium on shares]
(Being debentures redeemed by conversion into equity shares)
Quick Revision Checklist
Use this checklist before exams — tick off entries you can write from memory:
Partnership (30+ entries):
- Interest on Capital / Drawings
- Salary, Commission, Rent to partner
- P&L Appropriation entries
- Goodwill treatment (3 methods)
- Revaluation entries (6 types)
- Admission complete set
- Retirement + JLP entries
- Dissolution — Realisation Account entries
- Garner vs Murray insolvency entries
Company Accounts (25+ entries):
- Share Application → Allotment → Calls
- Pro-rata allotment excess adjustment
- Forfeiture + Reissue entries
- Shares for consideration other than cash
- Debenture issue (par, premium, discount)
- Collateral security entries
- DRR creation
- Debenture redemption entries
- Conversion of debentures
For the important questions that use these entries, see our companion guide. Also review the Ratio Analysis and Cash Flow step-by-step guide for Part B entries.
Study Smart, Not Just Hard
Knowing formats is necessary but not sufficient. You need to practise applying them with actual numbers. Here is the approach that smart study techniques research supports:
- Day 1–3: Read through this list. Identify entries you do not recognise.
- Day 4–10: Solve problems. Every time you get stuck on an entry, come back here.
- Day 11–14: Try writing entries from memory. Check against this list.
- Day 15+: Solve full CBSE sample papers. Time yourself.
If exam anxiety is holding you back, remember: Accountancy is the most predictable Commerce subject. These formats do not change. Master them, and you master the paper.
Frequently Asked Questions
How many total journal entry types are there in CBSE Class 12 Accountancy?
There are approximately 80+ distinct journal entry types across all chapters. Partnership accounts have around 35–40 entries (basic concepts, admission, retirement, dissolution), and Company Accounts have around 25–30 entries (shares and debentures). You do not need to memorise all 80 — focus on the 40–50 that appear most frequently.
Do I need to write narrations in the exam?
Yes. CBSE marking scheme specifically awards marks for correct narrations. A journal entry without narration may lose 0.5 marks. Keep narrations brief: "Being goodwill adjusted on admission of partner" is sufficient. Do not write long explanations.
What if I write the correct Dr/Cr but with wrong amounts?
You will still get partial marks for the correct format. CBSE awards step marks. If the entry format is correct and only the amount is wrong due to a calculation error, you typically score 1 out of 2 for that entry. Always show the calculation in working notes.
Should I use T-format or journal format for entries?
Use journal entry format (as shown in this guide) unless the question specifically asks for a ledger account. Journal format is standard for CBSE and is easier to read. Only prepare accounts (T-format) when asked for Capital Accounts, Realisation Account, or Cash Account.
Which entries are most commonly asked in board exams?
Based on the last 10 years of CBSE papers: (1) Goodwill entries on admission/retirement, (2) Revaluation entries, (3) Share forfeiture and reissue, (4) Debenture issue at discount, and (5) Realisation Account entries on dissolution. These five categories appear in almost every paper.
Can I use abbreviations in journal entries?
You can use standard abbreviations: A/c for Account, Dr. for Debit, P&L for Profit and Loss. Avoid non-standard abbreviations like "Cap." for Capital or "Deb." for Debentures. When in doubt, write the full word.
Related Guides
- CBSE Class 12 Accountancy Important Questions — Partnership and Company
- CBSE Class 12 Accountancy Chapter-Wise Marks Weightage 2027
- CBSE Class 12 Accountancy Ratio Analysis and Cash Flow — Step by Step
- CBSE Class 12 Business Studies Case Study Practice — Chapter Wise
- Board Exam Time Management — 3-Hour Strategy
- How to Study Smart, Not Hard — Indian Students
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