AccountingCode 9706
Partnerships
What this topic asks you to be able to do
- how to draw up, from full or incomplete accounting records, a partnership's statement of profit or loss, its appropriation account and its statement of financial position, where the partnership's business may either trade in goods or provide services
- the reasons partners might keep distinct capital and current accounts
- how to draw up the capital and current accounts of partners
- what a partnership agreement contains
- the benefits and drawbacks for partners of keeping a partnership agreement
- what the Partnership Act 1890 lays down about partners' salaries, how profit or loss is divided, interest on partners' loans, interest on capital and interest on drawings