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You are here: IGCSE Accounting Final accounts Revision Notes Accounting for Partnership business

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Accounting for Partnership business

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Article Index
Accounting for Partnership business
Partnership Agreement
Partnership Accounts
Accounting Treatment
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Capital account

Each partner in the business has a Capital account. It carries the record of initial capital and any additional capital contributed by the partner. It is fixed and is not affected by any entry other than contribution of capital.

Current account

This account records the share of profits and losses and drawing of a partner. Credit balances in the Current Accounts at the end of the accounting year represents undrawn profits whereas debit balance indicates that the partner has overdrawn from his account and owes to the firm.

Profit and Loss Appropriation Account

This account is prepared to show the division of profit or loss among the partners

Balance Sheet

Balance Sheet of a Partnership firm carries the following information:

  • Capital Account of all the partners
  • Current Account of all the partners

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