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WorksheetsIGCSE Accounting - Partnership Account Part 1
Total questions: 17
Worksheet time: 12mins
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
Why does a partnership prepare an appropriation account?
to allocate profit for the year to each partner based on sharing profit ratio
to calculate interest on partners' loans
to ensure that drawings are accounted for
to record evidence paid and proposed
4. Which of the following item is recorded in Partner's Current Account?
Loan From Partner
Partner's Salary paid
Bank Interest
Partners Drawings
Please explain minimum 2 disadvantages of forming partnership
Please explain minimum 2 advantages of forming partnership
interest on (a) is given to partners as a reward in investing asset to partnerships business. This is to encourage more investment made to partnerships business
interest on (a) is taken from partners as a penalty in making drawing of an asset from partnerships business to personal life. This is to discourage more drawings to be made from partnerships business
(a) liability, This is where the personal assets belonging to an individual (owner/partner) are sold in order to cover any outstanding debts owed to the bank e.g. house; car etc
