CXC CSEC Principles of Accounts (POA) exam guide: Section 9: Accounting for Partnerships
|
CXC CSEC Principles of Accounts Exam Guide Section 9: ACCOUNTING FOR PARTNERSHIPS |
||
|
SPECIFIC OBJECTIVES The students should be able to: |
CONTENT
|
|
| 1. | Define a partnership business; |
Definition of partnership; Comparison of a partnership with sole-traders, corporations; types of partners.
|
| 2. | State the features of a partnership; |
Features of partnership – voluntary association, mutual agency, unlimited liability.
|
| 3. | Give reasons for establishing partnerships;
|
Reasons for formation of partnership, for example, increased capital, diverse skills. |
| 4. | Outline the essential components of a partnership agreement;
|
Features of partnership agreement, including share profits, interest on capital and drawings, salaries.
|
| 5. |
Prepare journal entries and ledger accounts to record the capital of partnerships; |
The capital account of partners – cash and non-cash resources; types of capital account – fixed and fluctuation capital accounts and their implications.
|
| 6. | Use various methods to share profit/loss among partners; |
Methods of sharing profit/loss: capital ratio; fixed percentage, equally |
| 7. | Prepare appropriation account of partnerships; |
The preparation of the appropriation account.
|
| 8. | Prepare current account of partners; |
The current account prepared with items from the appropriation account; columnar form and single accounts. |
| 9. | Explain the significance of the brought down balances on partners’ current accounts; |
The significance of the debit and credit balances brought down on the current accounts. |
| 10. | Prepare balance sheet of partnerships; |
The treatment of current account balances on the balance sheet; (emphasis on capital section). |
| 11. | Analyze performance and position using ratios. |
The calculation and interpretation of accounting ratios. |
principle of account
to be successful in life and what i want to be,by hard work and responsiability of my own.
Helpful
This is very help it helped in studying for my exams.
Thanks a lot!!!
;)