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.

Quick NetOne, Econet, And Telecel Airtime Recharge