ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Capital and Current Accounts Example
- We have already looked at capital and current accounts here
- This is the solution to the question posted here
- We will use fixed capital accounts and current accounts to show the entries
The Capital Accounts
| Save | Moyo | Capital Accounts | Save | Moyo | ||
| Details | $ | $ | $ | $ | ||
| Balance c/d | 100 000 | 50 000 | Balance b/d | 100 000 | 50 000 |
|
The Current Accounts for the partners
| Save | Moyo | Current Accounts | Save | Moyo | ||
| Details | $ | $ | $ | $ | ||
| Balance b/d | 600 | Balance b/d | 2 000 | |||
| Interest on current account | 30 | Interest on Capital | 5 000 | 2 500 | ||
| Drawings | 15 860 | 10 910 | Interest on current account | 100 | ||
| Balance c/d | 9 340 | 5 060 | Salary | 12 000 | 8 000 | |
| Share of Profit | 6 100 | 6 100 | ||||
| Drawings | ||||||
25 200 | 16 600 | 25 200 | 16 600 |
- This hopefully illustrates some of the basic entries that are required to b entered in Current Accounts
To access more topics go to the Principles of Accounts Notes.
