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paternership accounts

This topic has 5 replies, 3 voices, and was last updated 10 years ago by John Moffat.

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August 19, 2014 at 11:50 am #191461
brian
Member
- Topics: 9
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If a paterner assumes responsibility of motor vehicle expenses and half of depreciation expense, how do we treat these entries the final accounts of the paternership?
August 19, 2014 at 11:52 am #191462
John Moffat
Keymaster
- Topics: 57
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Partnerships are not examinable in Paper F3!
(You would credit the expanse accounts and debit the partners current account, but again – this cannot be examined in F3. It was removed from the syllabus many years ago.)
August 20, 2014 at 7:34 am #191603
brian
Member
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Thank you so much mr John!-This is examined in my CPA paper one.
August 20, 2014 at 10:11 am #191619
John Moffat
Keymaster
- Topics: 57
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Ah – now I realise why you asked 🙂
September 8, 2014 at 11:00 pm #194377
gabriell
Member
- Topics: 11
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Dear John
Partners have limited liability and are not personally liable for the debts of the partnership
Is it correct ?
September 9, 2014 at 7:24 am #194392
John Moffat
Keymaster
- Topics: 57
- Replies: 54500
No – it is completely the opposite (unless it is a limited liability partnership).
A partnership is exactly the same as a sole trader except for the fact that there are two or more in business together. They have unlimited liability just as a sole trader does.
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