Difference between the Preparation of final accounts of a partnership firm & Sole trading concern is:

Distribution of salary

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Distribution of profit among the partners

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Effect of bad debts

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Effect of rent

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Solution

The correct option is A Distribution of profit among the partners
In partnership, the profit earned or loss recognized is divided among partners of the firm. On the other hand , in sole trading concern the whole profit/loss belongs to the Sole Proprietor.

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Similar questions

Q. Distinguish between the following:
Sole Trading Concern and Partnership Firm.

Q. Distinguish between the following.

Joint Hindu family firm and Sole Trading concern

Q. Sales of trading goods accounting to Rs. 6540 was wrongly recorded in sales day book as Rs.5640, however, the mistake was rectified before finalization of accounts. On rectification of the error before preparation of Final accounts, the profit and loss of the firm will ______.

Q. Steps of preparing Final Accounts is -
(a) Trading Account
(b) Profit and Loss Account
(c) Balance Sheet

State whether the following statement are true or false.

1. Final Accounts are prepared on the basis of Trial Balance.
2. Trading Account is a part of Profit & Loss Account.
3. Profit Loss Account is prepared to find out Gross Profit or Gross Loss.
4. Gross Profit or Gross Loss is transferred to Balance Sheet.
5. An amount of net profit is added to the capital.
6. All indirect expenses are debited to trading account.
7. Balance Sheet is a statement and not an account.
8. Capital account is a personal account.
9. Amount of prepaid expenses appears on assets side.
10. Bank Overdraft is a liability of business concern.

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Difference between the Preparation of final accounts of a partnership firm & Sole trading concern is:

The correct option is A Distribution of profit among the partnersIn partnership, the profit earned or loss recognized is divided among partners of the firm. On the other hand , in sole trading concern the whole profit/loss belongs to the Sole Proprietor.

The correct option is A Distribution of profit among the partners
In partnership, the profit earned or loss recognized is divided among partners of the firm. On the other hand , in sole trading concern the whole profit/loss belongs to the Sole Proprietor.