QUESTION NO. 1: Having the clear understanding of company’s accounts and partnership accounts you are required to answer the following questions. What is partnership accounts give example and what are the necessary components of partnership accounts that a company should consider when preparing partnership accounts and why? How can you differentiate the company’s accounts from partnership accounts and on what grounds?explain with the help of example. (important instructions: content should be original with 0% plagirisim, answer should be in details with proper explanation and examples)
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
QUESTION NO. 1:
Having the clear understanding of company’s accounts and partnership accounts you are required to answer the following questions.
- What is partnership accounts give example and what are the necessary components of partnership accounts that a company should consider when preparing partnership accounts and why?
- How can you differentiate the company’s accounts from partnership accounts and on what grounds?explain with the help of example.
(important instructions: content should be original with 0% plagirisim, answer should be in details with proper explanation and examples)
Step by step
Solved in 2 steps
