Accounting for Partnership

After studying this chapter, you will be able to:

• Define partnership and list its essential features
• Explain the meaning and list the contents of partnership deed
• Identify the provisions of the Indian Partnership Act 1932 that are relevant for accounting
• Prepare partners’ capital accounts under fixed and fluctuating capital methods
• Explain the distribution profit or loss among the partners and prepare the Profit and Loss Appropriation Account
• Calculate interest on capital and drawing under various situations;
• Explain how guarantee for a minimum amount of profit affects the distribution of profits among the partners
• Make necessary adjustments to rectify the past errors in partners capital accounts
• Prepare final accounts of a partnership firm;

Topic List

• Nature of Partnership
• Partnership Deed
• Special Aspects of Partnership Accounts
• Maintenance of Capital Accounts of Partners
• Distribution of Profit among Partners
• Guarantee of Profit to a Partner
• Past Adjustments
• Final Accounts