Financial Statements of Partnerships (Grade 11 NSC Matric Accounting): Flashcards
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Practise the cards
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Appropriation (definition)
Appropriation (definition)
Sharing out the net profit among partners
Four components of profit distribution
Four components of profit distribution
Interest on capital, salaries, bonuses, profit share
Partner salaries: expense or profit distribution?
Partner salaries: expense or profit distribution?
Profit distribution (NOT business expenses)
Capital Account shows
Capital Account shows
Permanent investment (stable, long-term)
Current Account shows
Current Account shows
Running total of what business owes partner (fluctuates)
Partner's total earnings formula
Partner's total earnings formula
Interest + Salary + Bonus + Share of remaining profit
Owner's equity formula for partners
Owner's equity formula for partners
Capital + Current Account Balance
Credit balance in Current Account means
Credit balance in Current Account means
Business owes the partner money
Debit balance in Current Account means
Debit balance in Current Account means
Partner owes the business money
Interest on capital: purpose
Interest on capital: purpose
Compensates partners for different capital amounts invested