FSTP Current a/c?!?

amybu22

Just finally got my head around how to do the appropriation account and now on one of the practise exam papers it's asking me to do the current a/c after the appropriation a/c has already been prepared.

What?

I really don't understand how to do this?

amybu22

I don't understand where the carried down balances come from

ariadne

Do you want to take a pic/print screen and post (via photobucket or whatever I think is how you do it here)? Or say which paper it is?

I found these questions often looked more complex than they really are, remember Current Accs are like the Capital Acc - Credit the amount owed to the partner by the business. However Current Accs can have negative balances if the partner has withdrawn more than gained. So positive opening balances are Credits while negative is Debit. The closing balance is the opposite as it is the balancing amount for the totals. I found some of these questions, including the actual exam, are about transferring the given information into the account or proforma with a little tweaking and making sure to ignore the irrelevant data.