what are the certain accounting rules that the partnership act 1890 states?
principally that profits and losses must be shared
1 of 5
what is a common way to account for a partners capital and how is this complemented?
answer 1: to maintain a fixed capital account for each partner answer 2: complemented by a fluctuation current account which is used as a working account for share of profits, drawings, etc.
2 of 5
when is a partnership formed?
formed when two or more people (maximum of twenty) set up in business
3 of 5
what are the two things that the final accounts of partnerships incorporate to make them different to a sole trader?
1. an appropriation section, as a continuation of the income statement, to show the share of profits and losses 2. accounts for each partner- usually seperate capital and current accounts- shown in the balance sheet
4 of 5
the partnership act of 1890 defines a partnership as?
the relation which subsists between persons carrying on a business in common with a view of profit
5 of 5
Other cards in this set
Card 2
Front
what is a common way to account for a partners capital and how is this complemented?
Back
answer 1: to maintain a fixed capital account for each partner answer 2: complemented by a fluctuation current account which is used as a working account for share of profits, drawings, etc.
Card 3
Front
when is a partnership formed?
Back
Card 4
Front
what are the two things that the final accounts of partnerships incorporate to make them different to a sole trader?
Back
Card 5
Front
the partnership act of 1890 defines a partnership as?
Comments
No comments have yet been made