Partnership Current Accounts

Wills

Hi all,

Just doing some last min cramming for this afternoon, and everything about partnership current accounts has fallen out of my head! :crying:

Please can someone remind me...

DR CR
Drawings salaries

which side does profit share / Int on capital / int on drawings and anything else I've forgotten go????

Thanks
Wills

meibaker

in current account
Dr drawing
Cr salaries, interest on capital, profit share.

good luck with your exam

jewels.p

Wills wrote: »

Hi all,

Just doing some last min cramming for this afternoon, and everything about partnership current accounts has fallen out of my head! :crying:

Please can someone remind me...

DR CR
Drawings salaries

which side does profit share / Int on capital / int on drawings and anything else I've forgotten go????

Thanks
Wills

Salary, Interest on Capital and Share of Profit are all CR
Drawings are DR

So I just remember everything is a Credit except for Drawings!

Think that's right anyway!:001_smile:

HayleyM

D for Drawings D for Debit.

Everything else is on the credit side!

That's how I remember it :001_smile:

Good Luck :thumbup1:

gregory

On Dr side: drawnings, goods taken for own use

ON Cr side: share profit, interest on capital, salaries.

Normal is credit balance on this account. If there is deibt means that partner has drawn out more than his or her share of profits. Another words You owe money to the business when You taken out more than You are entitled to.

Hoping that this will be helpful. This is description I found in osborne book

Wills

Thanks everyone, I've got it!! Was so calm about the costing exam, but this ones got me shakin' in my boots!

Good luck one and all :thumbup: