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Partnership Accounts help needed please x

  • Student
  • 14 posts
  • # 114555

Hi All, i'm desperately after a little bit of help please. After failing BA5 i've got a Kaplan revision giude, and need a few points clarified please (i can't ask my tutor, as she won't answer questions that aren't specific to their training material).

  1. Provision for doubtful debts has always been included within a T, P & L a/c within my study materinal - however, in the example in the Kaplan revision guide, it isn't? Only bad debt written off is featured on the T, P & L.
  2. Also, on the Balance Sheet for the Partnership a/c's, the 'Financed By' section is only made up the partner's current & capital accounts - nothing else - no mention of adding net profit or subtracting drawings - is that right?

If anybody could speare the time to reply and help me out a little, you'd honestly be my hero!

Thank you so much in advance.

Emma xx

  • Member
  • Practice Licence
  • 28 posts
  • # 114556

Hi Emma

In the Trial Balance notes you are told to charge any adjustments for provision to the bad debts expense account. So if it were to be increased you would add the additional amount to the bad debts figure.

The provision would still show in the balance sheet as a reduction to the overall debtors figure (which would already be reduced by any write offs).

The partners appropriation account would already have been done before drafting the B/Sheet so any profit share, salary and capital interest will have been credited to the current accounts and drawings and drawings interest debited. Once balanced the current acounts along with the capital accounts comprise the financed by section.

HTH

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