Answered: partnership final accounts?

Business

Accounting

partnership final accounts?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter10: Partnership Taxation

Section: Chapter Questions

Problem 9MCQ

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Question

Which one of the following statement is correct on preparation of partnership final accounts?

Net profit from income statement will be transferred to partners'capital account

Accounting principles are different from sole proprietorship business

Preparation of income statement is not same as sole proprietorship business

Adjustments will have dual effects in the income statement and statement of financial position

Definition Definition Accounts prepared at the end of the accounting period that allow a business to assess its financial performance and financial position. Final accounts contain income statements (also known as Trading and Profit and Loss account) and a balance sheet (also known as statement of financial position) which depicts the financial position at the end of the period.

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A well written partnership agreement should include each of the following except ________. A. how to settle disputes B. the name of the partnership C. division of responsibilities D. Partners individual tax rate
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