2. Prepare balance sheet of
partnerships
• The balance sheet of a partnership similar to
that of a sole trading company except for the
following:
– Capital accounts for each partner is listed
separately
– Current accounts of the partners are listed
separately in special sections for example
• Current accounts with credit balances are listed as
current liabilities
• Current accounts with debit balance are listed as
current assets
3. Prepare balance sheet of
partnerships
• There are two ways of setting out the capital
section showing:
– Detailed capital section – shows the capital
account balances at the year end and all of the
detailed information are recorded in each partner’s
current account
– Summarised capital section –will show the final
balances on each partner’s capital and current
account