IGCSE Accounting - Partnership Account Part 1

a legal document containing terms of agreement, Signed by partners and Used to avoid future disputes

• Partnership Staus

• Partnership Agreement

• Partnership Legality

• Partnership Creed

the drawings made by a partner will be recorded in _____.

• Partner's Capital account

• Partner's current account

• Profit and Loss Account

• None of these.

Which of the following is a NOT a disadvantage of forming a partnership?

• Business will require to be ended on the death of any partner

• Disagreements can occur

• Unlimited liability for debts

• Greater variety of skills and strenghs

Which of the following is a disadvantage of forming a partnership?

• Sharing of management and control

• Opportunities for specialisation

• More finance than a sole trader, and greater borrowing power

• Higher chance of arguments

when two or more persons enter into a business venture with the aim to make profit is called (a)  

What item can be found in Partnership Agreement (you can tick more than one option)

• Share of profits/losses ratio

• Interest charged on drawings

• Interest on Capital

• Partner's another business information

The account made after net profit with an adjustments include such items as partner salaries and interest on partner capital, interest on drawings is called (a)   account

What type of partner is outlined below:

A partner not involved in the day-to-day running of the business

• Active/General

• Limited

• Liability

• Sleeping

Which of the following is NOT an element of a Partnership Agreement?

• Rights and duties of each partner

• Division of profit and losses

• Salaries (if any) to be paid to partners

• Partner debit card PIN codes in case of emergency

The Appropriation section shows how the profits of the business are being used and shared amongst its owners

• True

• False