Partnerships | Appropriation accounts | 14 worked examples | CSEC PoA

In this video I show 14 examples of partnership appropriation accounts.

I start of with the basics of sharing profit using different methods: -
- when no profit sharing ratio is given,
- when the ratio is given as percentages,
- when the ratio is given in traditional ratio format,
- when the profit is shared in the ratio of the partners' capital balances,
- when there are more than 2 partners.

I then add the salary item and show that not all partners are necessarily paid salaries. Also, we discuss annual salaries and monthly salaries.

I go on to include interest on capital balances and then interest on drawings.

With the interest on drawings I show situations where the drawings amount is not outstanding for the entire year and how that is to be treated.

I also include special case examples where: -
- the appropriation account is not drawn up for the entire year,
- the net profit figure my require adjustment before appropriation begins,
- there is a loss after appropriation.

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