Partnership Account Formats (AS Level): Partners’ Current Account Format (Copy)

Partners’ Current Account Format

Standard Partners’ Current Account Layout (Exam-Preferred)

Partner’s Current Account

• Used When Partners’ Capital Accounts Are Fixed
• Records Short-Term Movements Only
• Balance May Be Debit Or Credit

Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course

Partners’ Current Account With Credit Balance (Most Common)

Partner’s Current Account

• Credit Balance Indicates Amount Owed To Partner
• Appears Under Current Liabilities (If Debit) Or Capital Section (If Credit)

Partners’ Current Account With Debit Balance

Partner’s Current Account

• Debit Balance Indicates Amount Owed By Partner To Business

Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course

Partners’ Current Account Without Date Column (Accepted)

Partner’s Current Account

• Used When Dates Are Not Provided
• Clear Labels Mandatory

Multiple Partners’ Current Accounts (Presentation)

Partner A – Current Account
Partner B – Current Account

• Separate Account Prepared For Each Partner
• Same Format Used For All Partners

Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course

Items Recorded In Partners’ Current Account

Debit Side

• Drawings
• Interest On Drawings

Credit Side

• Share Of Profit
• Interest On Capital
• Partners’ Salaries

Items Never Recorded In Partners’ Current Account

• Opening Capital
• Additional Capital Introduced
• Permanent Capital Withdrawals

Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course

Presentation Rules For Partners’ Current Accounts (Exam Scoring)

• Only Used With Fixed Capital System
• Do Not Mix With Capital Account Items
• Balance b/d And Balance c/d Must Be Shown
• Separate Account For Each Partner

Common Labels Used In Partners’ Current Accounts

• Share Of Profit
• Interest On Capital
• Interest On Drawings
• Partners’ Salary
• Drawings
• Balance b/d
• Balance c/d

Compact Partners’ Current Account Template (Emergency)

Current Account

Balance b/d xxxx

• Profit, Salary, Interest On Capital
  − Drawings, Interest On Drawings
  Balance c/d xxxx

One-Glance Exam Template

Current Account
Short-Term Only
Profit In, Drawings Out