In the partnership accounting , all the final accounts are same as sole trade business final accounts . But main difference in these accounts are that In partner ship accounting , we make one extra account that is called profit and loss appropriation account which is used for calculating net share of profit or loss of different partner of a firm.
- This account is opened with credit balance of net profit ,
- In the debit side , we show interest on capital , salary and commission of partners and
- in credit side we shows interest on drawing , after adjusting these items , we transfer net profit to partners capital accounts in their profit sharing ratio
- In Absence of any partner ship deed Partner will divide profit or loss equally
- No interest on capital is given
- No interest on drawing is given
- No salary to any partner Interest on loan given by any partner is 6% annual.
