FINANCIAL ACCOUNTING SSS3 FIRST TERM        

WEEK 2

FINAL ACCOUNTS OF A PARTNERSHIP BUSINESS

Performance Objectives

Students should be able to:

1.       Explain (a) the appropriation account   (b) the Balance sheet

2.       What is interest on capital?

Contents

PROFIT AND LOSS APPROPRIATION ACCOUNT OF A PARTNERSHIP

This, as the name implies, is the account where either the profit or loss of the partnership business is shared between or among the partners as stipulated in the partnership agreement. The profit and loss appropriation account marks the beginning of the difference between the final accounts of a sole trader and that of a partnership. This is because while the sole trader does not share his profit with anybody, the profit of the partnership must be shared by the partners.

Some Terminologies in profit & Loss Appropriation Account of a partnership

1.Drawings:- Partners can withdraw at regular or irregular.... View More