Partnerships Flashcards
1
Q
What is the layout of the current account?
A
DEBIT:
*Balance b/d <- Negative - partner owes business money
Drawings
Interest on Drawings
Balance c/d
CREDIT:
*Balance b/d
Interest on Capital
Salary
Profit Share
*OR
2
Q
What is the layout of the statement of financial position in a partnership?
A
Assets section does not change (same as sole trader)
Equity and liabilities Partner A Partner B Total
1. Capital
- Current accounts
Opening balance
Interest on capital
Partners salary
Profit share
Less: drawings
Interest on drawings
Liabilities does not change (same as sole trader)
If the current account balance has a debt balance the amount must go in brackets.