Chapter 16: Partnership Accounts

Question 1

Which of these are added and which are taken from the profit to allocate a profit share?

Answer 1

Salary - taken away
Sales commission - taken away
Interest on capital - taken away
Interest on drawings - added

Question 2

What is included in the current account and is it a debit or credit?

Answer 2

Drawings - debit
Interest on drawings - debit
Salary - credit
Sales commission - credit
Interest on capital - credit
Profit - credit