Based on ISBM MBA Accounting Assignment Solution and others
Answer:
Partnership Final Accounts consist of :
- Trading Account
- Profit & Loss Account
- Profit and Loss Appropriation A/c
- Balance Sheet of Firm
- Trading, Profit & Loss Account
Partnership Trading, Profit and Loss A/c are prepared on same line as Sole Proprietor. As these are discuss earlier, so not explain again.
- Profit & Loss Appropriation Account
Net Profit or Net Loss from business is ascertain in Profit & Loss Account. This Net Profit / Net Loss transferred to Profit & Loss Appropriation A/c. Internal amount payable to partners like partner Salaries, Commission, Interest on Partners Capital, Interest on drawings etc. are charges against Net Profit. Balance Net Profit / Net Loss is transferred to Partners Current Account / Capital Account as the case may be, specimen of Profit & Loss Appropriation is as under –
- Balance Sheet of Partnership Firm :
Balance Sheet of Partnership Firm is also like a Balance Sheet of Sole Proprietor only differ is that instead of sole proprietor capital alone, there will be each partners capital balances, may have Partners Current Account balances, Specimen of Balance Sheet as under.
Balance Sheets Liabilities side total must be equal to total Assets.
