ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Capital and Current Accounts

  • As we will continue to emphasize throughout the topic
  • You ought to pay attention to the requirements of the question and follow these
  • Where there are no guidelines or the question is silent remember the following provisions:
    • Profits and losses are to be shared equally
    • There is to be no interest allowed on capital
    • No interest is to be charged on drawings
    • Partners are not entitled to salaries
    • Partners who put a sum of money into a partnership in excess of the capital they have agreed
      to subscribe are entitled to interest at the rate of 5 per cent per year on such an advances
  • Also wherever possible use columnar Capital Accounts and Current Accounts it saves time and is more convenient
  • Always use current accounts and capital accounts instead of fluctuating capital accounts unless otherwise instructed

To access more topics go to the Principles of Accounts Notes.