Learning Accounting For Partnership Firms

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Accounting For Partnership Firms  

  1. PartnershipTopic Keywords
    • how to find partners 
    • are you searching for firm partnership
    • partnership development powerpoint
    • videos to read accountancy
    • partnership tax returns

    Learning Objectives:-  

    After studying this chapter the student will be confident to:
    • Understand and explain the meaning of partnership
    • Understand the characteristics of Partnership
    • Explain the meaning and contents of partnership deed.
    • Apply their provisions of Partnership Act, 1932 in the absence of partnership deed.
    • Prepare partners’ Fixed and fluctuating capital Accounts.
    • Calculate interest on Capital and Drawings.
    • Distribute profit among partners and prepare Profit and Loss Appropriation A/c.
    • Make the accounting treatment of past adjustment. 
     

SALIENT POINTS:        

  1. Partnership deed: It is a document which contains the terms and conditions of Partnership agreement either oral or written.
  2. Profit and Loss Appropriation Account : After the preparation of Profit and Loss account, entries pertaining to Interest on Capital, Drawings , Salaries among the partners are shown separately in a newly opened Profit and Loss Appropriation Account.
  3. Rules applicable in the absence of Partnership Deed :
    • a) Profit sharing ratio will be equal
    • b) No Interest on Capital and Drawings
    • c) No Remuneration or Salary to the partners.
    • d) Interest on Loan advanced by the partner @6%p.a.
     
  4. Fixed and Fluctuating Capital Accounts : When the Capitals are fixed, the Current account of the partners will be maintained. 
        Here is a video for your better understanding ! and keep reading keep sharing. :)

                            

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