PARTNERSHIPS

Question 1

CURRENT ACCOUNT

Answer 1

1. Opening balance
2. Add interest in loans
3. Add salaries
4. Add interest on capital
5. Add profit share
6. Less drawings
7. Less drawing interest

Question 2

CAPITAL/ADMISSION OF NEW PARTNER

Answer 2

1. Opening balance
2. Capital introduced
3. Profit revaluation - old ratio
4. Good will created - old ratio
5. Goodwill written off - new ratio
6. New balance

Question 3

Appropriation Account

Answer 3

1. Add interest on drawings
2. Less salaries
3. Less interest on capital
4. Share of Profit