Introduction to Partnership Accounts

SHORT ANSWERS: (Write at least Few lines)

  1. What do you mean by profit & loss appropriation account? Why is it prepared?


  1. What are the usual adjustments that are to be adjusted in partnership final account?
  2. If Profit sharing ratio is not given, how you will share the profit between the partners?


  1. Rami and Rahim were partners in a firm. The firm earned a profit of OMR 60,000. C was

entitled to a commission of 5% before charging such a commission. You are required to

calculate the commission payable to Mr. Rahim.

  1.     What adjusting entries would you record for the following:

(a) Depreciation

(b) Discount on debtors

(c) Interest on capital

(d) Manager’s commission