Partnerships
A partnership is an arrangement in which persons carry on a business together and share outcomes under their agreement and applicable law. Partners typically agree how to share profits, contribute capital and make decisions. The accounting records of the business should be distinguished from the partners' personal records. Different partnership forms may give different partners different levels of liability. The agreement can also specify drawings, interest on capital and profit-sharing arrangements.
Worked example
Two partners share profits according to an agreed ratio.
Common mistake
Liability and legal personality vary with partnership type and jurisdiction; do not assume all partners have identical rights.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA4 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
