11. Partnership accounts Flashcards
1
Q
What is the appropriation statement?
A
Regardless of how a business performs, partners are entitled to a fixed amount of:
-profit
-interest on capital (if applicable)
2
Q
Check book about the P&L and Balance Sheet bits
A
3
Q
Where is capital introduced recorded for partners?
A
Partners’ CAPITAL accounts
4
Q
Where are drawings and profits recorded?
A
In the partners’ CURRENT account
