FINANCIAL ACCOUNTING SSS3 FIRST TERM        

WEEK 1

PARTNERSHIP ACCOUNTS

Performance Objectives

Students should be able to:

1. Define Partnership
2. List seven items that should be contained in a partnership deed.

Contents

PARTNERSHIP can be defined as the relationship which exists between two or more persons who are carrying on business in common with a view to making a profit. The rules governing the conduct of a partnership business are contained in the document known as the Deed of Partnership or Articles of Partnership or Partnership Agreement.

CONTENTS OF THE DEED OF PARTNERSHIP

The partnership Deed contains among others, the following.

1. Name of the partnership
2. Names of the partners
3. Capital contribution
4. Nature of the partnership business
5. Profit and loss sharing ratio
6. Interest in capital contribution
7. Interest chargeable on drawings
8. View More