ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Appropriation Account Example

Example Question Appropriation Account

Gandanga, Waeni and Banda are partners. They share profits and losses in the respctive ratios

\tfrac{3}{8} : \tfrac{3}{8}: \tfrac{1}{4}
For the year ended 31 December 20X8 their capital accounts remained fixed at the following amounts:

Gandanga50 000
Waeni40 000
Banda30 000
Total Capital

120 000

Additional information

  • They have agreed to give each other 5 per cent interest per annum on their capital accounts.
  • In addition to the above partnership salaries of $32 000 for Waeni and $14 000 for Banda are to be charged.
  • The net profit of the partnership before taking any of the above into account was $84 800.


  1. Draw up the appropriation account of the partnership for the year ended 31 December 20X3.

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