Capital and Current Accounts

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  • Created by: VivianaCi
  • Created on: 07-11-16 10:25
What does a Capital Acc contain?
Goodwill adjustments, profits or losses through revaluation of assets
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What does a Current Acc contain?
salaries, interest on capital residual profit, interest on drawings
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Share of profit? Which side?
CR
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Share of loss. Which side?
DR
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Salary/Comission. Which side?
CR
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Interest allowed. Which side?
CR
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Interest charged. Which side?
DR
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Drawings. Which side?
DR
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What does the fluctuating Current Account show?
If partners have withdrawn more profit from the business than they are actually earning.
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Other cards in this set

Card 2

Front

What does a Current Acc contain?

Back

salaries, interest on capital residual profit, interest on drawings

Card 3

Front

Share of profit? Which side?

Back

Preview of the front of card 3

Card 4

Front

Share of loss. Which side?

Back

Preview of the front of card 4

Card 5

Front

Salary/Comission. Which side?

Back

Preview of the front of card 5
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