Level 3 FAPS acc for partnerships PLEASE help!!

Natalie_N1
Natalie_N1 Registered Posts: 3 New contributor 🐸
in Financial Accounting: Preparing Financial Statements
I got so confused on partnerships capital account.

I am not sure if drawing will be recored in capital acc or not.

My BBP textbook shows ONLY money injected should be recored in capital account, but in a AAT practice paper, drawing is recored ...

Please anyone help, exam is coming next week.

Comments

  • davealucas
    davealucas Registered Posts: 156 Dedicated contributor 🦉
    Yes, drawings are a withdrawal of capital funds so will be recorded in the capital account.
  • Natalie_N1
    Natalie_N1 Registered Posts: 3 New contributor 🐸
    Thank you very much !
  • Mun123
    Mun123 Registered Posts: 6 New contributor 🐸
    edited July 13
    I did my FAPs exam last week and passed. The Partnership capital account question did pop up.

    I remember they listed down drawings, Loss (not profit - trick question!), capital injection (Transfers laptop to business), interest on drawings, salaries, interest and give you a T account to fill in.

    Capital account

    DR
    • Drawings
    • Loss
    • Interest on drawings
    • balance C/D
    CR
    • Interest on capital
    • salaries
    • Profit
    • Capital injection (transfer laptop to business)


    I was confused as well during revision, I thought you would only do it on Partnership current accounts. But when the question came up in the exam. It was the last question in the task and only just gave those options and a T account to fill in. So I just filled it in with all the information listed.

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