What you'll learn
How partnerships share profit and record accounts.
Key ideas
- The partnership agreement governs the arrangement; without one, profits are shared equally.
- The appropriation account divides profit.
- Interest on capital and on drawings; partners' salaries; capital and current accounts.
Exam tips
- Learn the default rules if no agreement exists.
- Show the appropriation clearly.
Common mistakes
- Confusing interest on capital and drawings.
- Forgetting the equal-share default rule.