Accounting treatment for a partnership enterprise is alike to that of a sole proprietorship trading concerns with the exception of the following aspects mentioned below:
- Maintaining Partners’ Capital Accounts
- Allocation of Profit and Loss amidst the partners
- Reconciliation for Wrong Appropriation of gains in the Past
- Modernization of the Partnership Firm
- Dissolution of Partnership Firm. The first 3 aspects which are mentioned above have been taken up in the following segments. The remaining aspects have been covered in the subsequent chapters
A Partnership Firm is a very distinguished kind of business establishment. There are a few distinctions which are : Distribution of Profit and Loss among the partners, Maintenance of Partner’s Capital Accounts, Adjustments for the wrong appropriation profits etc.
The above mentioned is the concept that is explained in detail about Special Aspects of Partnership Accounts for the class 12 students. To know more, stay tuned to BYJU’S.