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14 Cards in this Set
- Front
- Back
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Equity
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Money invested by a partner
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Equity Account
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Money invested by each partner. Each given an account. Shows DR, CR and Bal. Looks like a Current Account for Equity |
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Current Account
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Business bank account for each partner. Includes the Date, DR, CR and Bal
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Statement of Finacial Position
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Same as Sole Trader but must show equity of each partner + current account balances of each partner
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Share of Profit and Loss
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Same as sole trader but must show equity of each partner + current account balances of each partner
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Interest on Equity
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Shown in appropriaction account for each partner
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Appropriation Account
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Profit for Year. Show salaries, Interest on Equity, Interest on Drawings. Then work out Profit Share from given (or worked out) ratio |
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Goodwill
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Reputation and Customer Loyalty. Increases Value of the business but not an actual physical asset. Marked as intangible in NCA |
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Balance Sheet
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Non-Current Assets + Current Assets - Current Liabiltities
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Income Statement
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Same as Sole Trader
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Interest on Drawings
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Sometimes charged to partners when they draw money. Added to Profit in Appropration Account and a DR on Current Account of partners |
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Transder to General Reserve
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Deducted from profit before it is shared amongst partners.
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General Reserve
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'Just in case' account for the future
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Revaluation Account
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If assets increase in value it is held in a revaluation reserve just in case it is not really worth that. Shown in reserves in SOFP |
